ENFORCEMENT INFORMATION FOR FEBRUARY 3, 2006
OFAC has assessed a penalty against the following companies:
The Chinese American Bank Assessed a Penalty for Iran Program Violations: The Chinese American Bank, New York, NY 10002, has remitted a $7,370 civil monetary penalty for its violation of the Iran program in July 2000. OFAC imposed the penalty for The Chinese American Bank’s exportation of services to and facilitation of a foreign party’s transactions with Iran. The Chinese American Bank initiated an unauthorized funds transfer on behalf of a corporate offshore customer destined for an account at Bank Melli Iran – Dubai Branch, a bank owned and controlled by the government of Iran. The Chinese American Bank did not voluntarily disclose this matter to OFAC. For a copy of OFAC’s Penalty Notice issued to The Chinese American Bank, please visit the following url: http://www.treas.gov/offices/enforcement/ofac/civpen/penalties/chinese_american_bank_pn.pdf
1) The Penalty Notice cites violations of 560.204, 560.206, 560.208, and clarifies that the rejected payment was made for IRISL, an entity that was, at the relevant time recognized as meeting the definition of Government of Iran, but was not blocked. Similarly, the payment was to be made to a GOI bank; bank Melli was considered to be the Government of Iran but was not blocked at the time.
With respect to the rejection, in Epsilon Electronics, Inc. v. U.S. Dep't of the Treasury, it was confirmed that for there to be an "export" (here, of services) to Iran (or the Iranian Government) within the meaning of 560.204, there is no need for the thing exported to reach its destination. In any event, the initiation of an...