German firm fined $5.5 million for sanctions violations

OFAC said the violations were the result of rogue managers at AppliChem continuing illicit exports from Europe to Cuba under the nose of their U.S. owner.

German firm fined $5.5 million for sanctions violations

OFAC said the violations were the result of rogue managers at AppliChem continuing illicit exports from Europe to Cuba under the nose of their U.S. owner.

German firm fined $5.5 million for sanctions violations

OFAC said the violations were the result of rogue managers at AppliChem continuing illicit exports from Europe to Cuba under the nose of their U.S. owner.

 
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has fined Darmstadt, Germany-based AppliChem GmBH $5,512,564 for 304 violations of the Cuban Assets Control Regulations.
    The illegal shipments, which were valued at $3,433,495, occurred between May 2012 and February 2016, OFAC said.
    On Jan, 1, 2012, Glenview, Ill.-based Illinois Tool Works (ITW) acquired AppliChem, which manufactures chemicals and reagents for the pharmaceutical and chemical industries.
    While performing its preacquisition due diligence, ITW discovered references to countries subject to U.S. economic and trade sanctions on AppliChem’s website. On Dec. 19, 2011, ITW warned AppliChem management that it must cease all Cuban transactions after the acquisition.
    AppliChem claimed to share U.S. export compliance details with all its European branches upon completing the acquisition. However, the company’s Spanish branch continued to facilitate orders to Cuba through 2012.
   Upon discovery, ITW submitted a voluntary self-disclosure to OFAC on Jan. 23, 2013. In the disclosure, ITW stated that based on representations from AppliChem’s former owners, “all [of AppliChem’s] open [Cuba] transactions were canceled.” On May 29, 2015, OFAC issued a warning letter to ITW in response to AppliChem’s post-acquisition Cuba sales.
    However, on Jan. 27, 2016, an anonymous report was made through the ITW ethics helpline alleging that AppliChem continued sales to Cuba via an intermediary in Berlin. ITW conducted an investigation and found that AppliChem’s former owners had concealed this activity, OFAC said.
    OFAC said this case demonstrates the importance for companies to implement “risk-based controls,” which include conducting routine audits and follow-ups with their overseas management, to ensure subsidiaries are complying with U.S. sanctions regulations.

The stiff headwinds trade disputes have created for U.S. pork exports have certainly not subsided. USMEF is encouraged by reports of progress toward resolution of these disputes, but in the meantime, missed opportunities for export growth are mounting

Spot container rates from Shanghai to Rotterdam clocked in at $1,312 per FEU as of April 18, down from $1,431 per FEU four weeks prior, and down from $1,656 per FEU eight weeks prior, but still up 14 percent year-over-year, according to data from Drewry's WCI.

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German firm fined $5.5 million for sanctions violations

OFAC said the violations were the result of rogue managers at AppliChem continuing illicit exports from Europe to Cuba under the nose of their U.S. owner.

Feb 15, 2019 on Dec 27, 2018AmericanShipper.com

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German firm fined $5.5 million for sanctions violations

OFAC said the violations were the result of rogue managers at AppliChem continuing illicit exports from Europe to Cuba under the nose of their U.S. owner.

Feb 15, 2019 on Dec 27, 2018AmericanShipper.com