Cement import into USA draws US$506,250 OFAC penalty

Cement import into USA draws US$506,250 OFAC penalty
25 February 2019

The US Treasury Department’s Office of Foreign Assets Control (OFAC) has reached a US$506,250 settlement with ZAG International, based in Newtown (CT), for illegally sourcing clinker from Iran.

Between 11 July 2014-15 January 2015, ZAG International purchased 263,563t of Iranian-origin clinker via a supplier in the UAE, which was then resold by the company to a customer in Tanzania. ZAG’s actions violated the Iranian Transactions and Sanctions Regulations.

OFAC said ZAG’s managing director for the Asia-Pacific, Middle East and East Africa regions purchased the cement clinker, valued at about US$14.5m, with knowledge that it was sourced from Iran. Once discovered, ZAG voluntarily self-disclosed the apparent violations to OFAC, which helped to mitigate the penalty for wrongdoing, according to a report in American Shipper.

“Although ZAG did exercise limited due diligence, it acted with reckless disregard for sanctions requirements by failing to substantively address the U.S. sanctions prohibitions in place with respect to Iran despite contemporaneous risk indicators,” the OFAC said.

Published under Cement News

Tagged Under: USA Iran imports legal