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Civil Enforcement Information - Red Bull North America, Inc.

Date issued: Jun. 27 2014

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ENFORCEMENT INFORMATION FOR June 27, 2014

Red Bull North America, Inc. Settles Potential Civil Liability for Alleged Violations of the Cuban Assets Control Regulations, 31 C.F.R. Part 515: Red Bull North America, Inc. ("RBNA") has agreed to pay $89,775 to settle potential civil liability for seven alleged violations of the Cuban Assets Control Regulations, 31. C.F.R. part 515 (the "CACR"). Between June 8 and June 18, 2009, seven representatives of RBNA traveled to Cuba in order to film a documentary, without authorization from OFAC. The production of the film, as well as the associated travel, was approved by RBNA management.

OFAC determined that RBNA did not voluntarily self-disclose the alleged violations and that the alleged violations constituted a non-egregious case. The maximum penalty amount for the alleged violations was $455,000, and the base penalty amount was $105,000.

The settlement 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: RBNA had prior knowledge of U.S. sanctions on Cuba and took steps to conceal the transactions; RBNA is a U.S. subsidiary of a sophisticated multinational company with extensive experience in international trade; RBNA made a remedial response by instituting an OFAC compliance program; and RBNA has not received a penalty notice or Finding of Violation from OFAC in the five years preceding the date of the unauthorized travel to Cuba.
External link location:
https://ofac.treasury.gov/media/13456/download?inline

TURBOFAC Commentary (132 words)

Notes:

1) Compare IXTLAN Corporation (2006).

2) Red Bull may have considered its documentary production to fall within the scope of the general license for Journalistic Activities (§ 515.563), but OFAC obviously did not. Under the then-prevailing standard for the general license for journalistic activities, one needed evidence of being "regularly employed as a journalist by a news reporting organization or Evidence that [one was] are regularly employed as a supporting or technical personnel by a news reporting organization."

The general license has been amended to add a category for "freelance journalist[s] with a record of previous journalistic experience working on a freelance journalistic project," which expands the scope of potential users beyond news reporting organizations. In addition, the activity is now seemingly generally authorized by 515.545(b)(2).