Enforcement Release: 3M Company

Date issued: Sep. 21 2023

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TURBOFAC Commentary (1719 words)

Notes:

1) BACKGROUND; LEGAL BASIS FOR LIABILITY

This enforcement action comes less than a month after Enforcement Release: Construction Specialties Inc., which, similar to this case, involved activities engaged in during the JCPOA period--when Iran General License (No. H) was valid--that were outside teh scope of the GL.

Here, OFAC says that "3M East" (the Swiss Subsidiary) and 3M Gulf (the UAE Subsidiary) engaged in transactions that, due to 560.701(a)(4), the subsidiaries' U.S. person parent was ultimately responsible for. While 560.215 has the effect of subjecting U.S.-owned or -controlled foreign entities to most of the ITSR's substantive prohibitions, 560.701(a)(4) provides that it is the U.S. person parent that is responsible for the civil...