Alma Investment LLC OFAC Civil Penalty: $1.5M (2013)

Alma violated the prohibition against the exportation of services, directly or indirectly, from the United States to Iran or the Government of Iran, as set forth in § 560.204 of the Regulations. The violations arose from Alma's concealment and/or omission of material information in funds transfers originated for processing through the United States, which prevented U.S. financial institutions from assessing the permissibility of the transactions by omitting references to OFAC-sanctioned countries or persons. Alma appears to be associated with multiple Iranian entities and facilitated Iranian-related payments through the United States. Alma's management, likely including senior management, had actual knowledge and/or reason to know of the conduct that led to the violations.

OFAC determined that Alma did not voluntarily self-disclose the violations and that the violations constituted an egregious case. The base penalty amount was $1,500,000, which is also the assessed penalty amount.

In reaching this amount, OFAC considered the following facts and circumstances pursuant to the General Factors under OFAC's Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A: Alma acted at least recklessly, and apparently willfully, by concealing and/or omitting material information in funds transfers; Alma's management, likely including senior management, had actual knowledge and/or reason to know of the conduct; Alma's conduct resulted in harm, and potentially significant harm, to U.S. sanctions program objectives with respect to Iran; Alma does not appear to have an OFAC compliance program; and Alma did not cooperate with OFAC during the course of its investigation. OFAC also noted that Alma had not received a penalty notice or Finding of Violation in the five years preceding the date of the transactions.

OFAC stated that assessing a civil monetary penalty against Alma will have a compliance/deterrence effect by encouraging greater due diligence by foreign financial institutions that maintain accounts for third-country trading companies and/or money transmitters. The case also illustrates that concealing or omitting references to OFAC-sanctioned countries or persons in funds transfers processed through the United States prevents U.S. financial institutions from screening those transactions — a practice OFAC treated as at least reckless and apparently willful conduct. Alma's lack of any OFAC compliance program and its failure to cooperate during the investigation were both factors in the penalty assessment.

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