ENFORCEMENT INFORMATION FOR February 21, 2012
Richland Trace Homeowners Association, Inc. Assessed a Penalty for Violating the Former Liberian Regime of Charles Taylor Sanctions Regulations: Richland Trace Homeowners Association, Inc. ("Richland Trace"), Dallas, TX, has been assessed a penalty of $9,000 for violating the Former Liberian Regime of Charles Taylor Sanctions Regulations, 31 C.F.R. part 593 (the "Regulations"). Richland Trace used $9,500 of the proceeds from the February 3, 2009, sale of property in which a person designated pursuant to Executive Order 13348, Blocking Property of Certain Persons and Prohibiting the Importation of Certain Goods from Liberia, had an interest, to reimburse itself for past assessments and late fees that had accrued against the property since December 2005. As a result, OFAC determined that Richland Trace violated the prohibition against dealing in blocked property set forth in § 593.201 of the Regulations. OFAC determined that Richland Trace did not voluntarily self-disclose the violation to OFAC and that the violation constituted a non-egregious case. The base penalty amount for the violation was $10,000. The assessed penalty amount reflects OFAC's consideration of the following facts and circumstances, pursuant to the General Factors under OFAC's Economic Sanctions Enforcement Guidelines: Richland Trace displayed reckless disregard for U.S. sanctions by failing to comply with the conditions of its OFAC license and has no history of prior OFAC violations. For a copy of OFAC’s Penalty Notice issued to Richland Trace, please visit the following url:
http://www.treasury.gov/resource-center/sanctions/CivPen/Documents/01252012_richland_notice.pdf
1) The penalty notice suggests that the condominium association had a license to foreclose the blocked condo, but should have deposited the funds in a blocked account, rather than reimburse itself with them.
Compare § 593.505, and analogous provisions, which generally license "[e]ntries in certain accounts for normal service charges authorized."
"A U.S. financial institution is authorized to debit any blocked account held at that financial institution in payment or reimbursement for normal service charges owed it by the owner of that blocked account."
Such reimbursements do not extend beyond holders of blocked property other than financial institutions, however.
2) Rare case involving acting outside the scope of a pre-existing, valid specific license.
3) Refer to Penalty Notice - Richland Trace Homeowners Association, Inc.