Enforcement Release: Emigrant Bank

Date issued: Sep. 21 2023

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

TURBOFAC Commentary (436 words)

Notes:

1) This is an unusual enforcement action in which the alleged violator was aware of all of the relevant sanctions-implicating facts, made a (presumably good-faith) determination concerning the legality of the transactions at issue, and was fined when the determination turned out to be incorrect. Relatedly, it is a rare enforcement action in which OFAC gives what is essentially interpretive guidance in the enforcement release. Compare State Street Bank and Trust Co., another enforcement action that was based on a U.S. bank seemingly missing the "Iranian Accounts" restriction on an otherwise seemingly applicable GL.

2) Note that OFAC counts 30 violations, which is the exact number of "transactions processed between June 2017 and March 2021". Transactions involving the maintenance of the account, e.g. posting of interest, are not regarded as violations. This is due to...