On Friday, OFAC released its settlement with Red Bull North America (RBNA), issuing a civil monetary penalty of $89,775 vs. a base penalty of $105,000 and a maximum penalty of $455,000. Why? Because, in 2009, the firm violated the Cuban Assets Control Regulations (CACR) by filming a documentary in Cuba, without getting OFAC’s blessing.
Here’s the official explanation of why the reduction in fine was so slim (normally, you get at least a 25% discount for a first offense) – emphasis added:
- 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.
It should be noted that, while RBNA did not voluntarily self-disclose the violations, they were considered non-egregious. And that keeps you out of the really expensive quandrant of the penalty grid.
Link:
Posted with BlogsyFiled under: OFAC Updates, Settlements
