Enforcement Release: April 25, 2022
OFAC Settles with Toll Holdings Limited for $6,131,855 Related to Apparent Violations of Multiple Sanctions Programs
Toll Holdings Limited (“Toll”), an international freight forwarding and logistics company headquartered in Melbourne, Australia, has agreed to pay $6,131,855 to settle its potential civil liability for 2,958 apparent violations of multiple OFAC sanctions programs. The apparent violations occurred when Toll originated or received payments through the U.S. financial system involving sanctioned jurisdictions and persons. These payments were in connection with sea, air, and rail shipments conducted by Toll, its affiliates, or suppliers to, from, or through the Democratic People’s Republic of Korea (DPRK), Iran, or Syria, or the property or interests in property of an entity on OFAC’s list of Specially Designated Nationals and Blocked Persons. The settlement amount reflects OFAC’s determination that Toll’s apparent violations were non-egregious and voluntarily self-disclosed. This case highlights...
1) From a legal basis perspective, this enforcement action is precedential in at least one notable respect. There have been enforcement actions in the past where non-U.S. person originators of payments through U.S. banks were held liable for "causing" the U.S. banks to export financial services to sanctioned jurisdiction or otherwise deal in property in which a blocked person had an interest (compare Civil Enforcement Information - PT Bukit Muria Jaya and Civil Enforcement Information - Essentra FZE). This, however, is the first time that a non-U.S. person recipient of a payment "caused" U.S. persons to process payments through the U.S. financial system solely by issuing invoices that called for USD payment (see also Enforcement Release - Essentra FZE on receipt of payment). OFAC would probably say that, when an invoice is issued by a non-U.S. person that...