Enforcement Release - An Unnamed Individual (19)

Date issued: Nov. 19 2024

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TURBOFAC Commentary (616 words)

Notes:

1) This penalty is, by a factor of about 6, the largest OFAC penalty ever imposed on an natural person individual (compare the “former senior executive” component of Enforcement Release: Murad, LLC and Former Senior Executive of Murad, LLC (Individual)). Query why facts as egregious as these were the subject of an OFAC civil penalty assessed to an anonymous person, rather than a criminal prosecution.

2) From a legal basis standpoint, OFAC appears to be charging violations of (i) the “evade/avoid” prohibition at 560.203 due to (among other tactics) the check “memo lines sometimes referenc[ing] Iran or inaccurately purport[ing] to be in connection with a loan,” (ii) 560.207 (new investment) for investing funds in the hotel in Iran, (iii) 560.206(a)(1) (dealing in Iranian origin services) for (among other things) hiring contractors in Iran, 560.208 (facilitation) probably...