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ENFORCEMENT INFORMATION FOR February 5, 2010
Balli Group PLC and Balli Aviation, Ltd. Settle Iranian Transaction Regulations and Export Administration Regulations Allegations: Balli Group PLC and Balli Aviation, Ltd. (collectively, "Balli"), London, UK have agreed to the assessment of a $15 million civil penalty to settle allegations of violations of the Iranian Transactions Regulations (the "ITR") and the Export Administration Regulations (the "EAR"). Balli is settling the allegations pursuant to the terms of a Settlement Agreement among Balli, the U.S. Department of Commerce Bureau of Industry and Security ("BIS"), and OFAC.
In connection with the settlement, OFAC alleged that Balli violated §§ 560.203 and 560.204 of the ITR when it exported three commercial airliners from the United States to Mahan Airlines in Iran ("Mahan"), and then attempted to export three additional commercial airliners to Mahan. Concurrently with this settlement, Balli Aviation, Ltd. pleaded guilty...
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1) At the time the violations were committed, Mahan Air was not an SDN designated pursuant to EO 13224.
2) For further factual information see Settlement Agreement - Balli Group PLC and Balli Aviation, Ltd. In addition to the indirect exports to Iran in violation of 560.204, the web post characterizes the violation of 560.203 as an "attempt," which in the Settlement Agreement is described as follows.
"During the period October 2006- July 2008, Balli Aviation and/or Balli Group appear to have violated § 560.203 of the ITR when they engaged in financing and sales negotiations with Mahan regarding three additional airliners."
Considering that Mahan Air was not an SDN at the time, such that activities with the airline could be...