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ENFORCEMENT INFORMATION FOR October 29, 2014
Bupa Florida Settles Potential Civil Liability for Apparent Violations of Multiple Sanctions Programs: Bupa Insurance Company (BIC), Bupa Worldwide Corporation (BWW), and USA Medical Services Corporation (USAMED) are Florida corporations located in Miami, Florida (collectively "Bupa Florida"), and affiliates of an international healthcare group headquartered in the United Kingdom. Bupa Florida has agreed to remit $128,704 to settle potential civil liability for 39 apparent violations of the Narcotics Trafficking Sanctions Regulations, 31 C.F.R. part 536 (the NTSR), the Foreign Narcotics Kingpin Sanctions Regulations, 31 C.F.R. part 598 (the FNKSR), or the Cuban Assets Control Regulations, 31 C.F.R. part 515 (the CACR) that occurred between Mach 26, 2008, and March 1, 2011.
BWW and USAMED provided insurance support services for healthcare policies which provided coverage to persons designated on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN...
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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...