Civil Enforcement Information - Bupa Florida

Date issued: Oct. 29 2014

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TURBOFAC Commentary (580 words)

Notes:

1) This enforcement action is most notable for the broad scope of "facilitation," or "indirect dealing" in blocked property, that OFAC reads as being implied in standard blocking language of two list-based sanctions programs (i.e. the NTSR and FNKSR), particularly as it relates to back-office functions. Here, OFAC apparently considers "marketing, administrative, and operational services, including the retention of agents, premium processing, underwriting, claims payments and customer service, as well as issuing claim and reimbursement checks" to be prohibited with respect to insurance policies issued by a different party and in which an SDN has an interest. The range of activities considered violative of the sanctions regulations presents major diligence challenges, seeming to imply that a company must have a central choke point that...