ENFORCEMENT INFORMATION FOR July 10,2012
Great Western Malting Co. Settles Apparent Violations of Cuban Assets Control Regulations: Great Westem Malting Co. ("Great Western"), of Vancouver, Washington, has agreed to pay $1,347,750 to settle apparent violations of the Cuban Assets Control Regulations. The apparent violations by Great Westem occurred between August 2006 and March 2009, when it performed various back-office functions for the sales by a foreign affiliate of non-U.S. origin barley malt to Cuba. The base penalty amount for the apparent violations was $5,990,000. This matter was not the subject of a voluntary disclosure to OFAC and the apparent violations constitute a non-egregious case. The settlement amount reflects OFAC's consideration of the following facts and circumstances, pursuant to the General Factors under OFAC's Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, App. A: Great Westem is a large, sophisticated entity; Great Western did not have an adequate...
1) This is a relatively straightforward example of "facilitation" under the CACR, even though it contains no explicit prohibition against facilitation.
While only citing the Part of the CFR violated, rather than a specific provision, OFAC leaves the precise provision violated a mystery. It has been suggested that the prohibition against facilitation in the CACR is found, dealing with 515.201(c), i.e. the evasion prohibition. Without any facts suggesting deception, however, we look at somewhat analogous situations and presume that the basis for liability is 515.201(b). OFAC has described cases in which U.S. entities have facilitated travel to Cuba in 515.201(b)-like terms (e.g. Civil Enforcement Information - Travelocity, Inc. (2007) - "OFAC alleged that Travelocity provided travel-related services in which Cuba or Cuban nationals had an interest by arranging air travel and hotel...