Ameron International OFAC Settlement: $434.7K (2013)

In apparent violation of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (the "ITSR"), Ameron committed three distinct types of conduct between on or about March 14, 2005 and on or about October 5, 2006. First, Ameron approved, on two occasions, capital expenditure requests made by Ameron B.V., a Dutch subsidiary, and Ameron (Pte) Ltd. ("PTE"), a Singaporean subsidiary, to purchase toolings and other equipment needed to fulfill orders for a South Pars project located in Iran. Second, Ameron referred to its foreign subsidiaries three business opportunities involving the sale of goods to Iran that Ameron itself could not have directly performed as a result of the prohibitions set forth in the ITSR. Third, Ameron provided testing services from its Burkburnett, Texas facility to PTE with reason to know that they would be provided to Arvand Petrochemical, an entity located in Iran.

In apparent violation of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (the "CACR"), the Colombian branch office of Ameron's U.S. subsidiary, American Pipe & Construction International, on two occasions sold concrete pipe to a consortium in which a Cuban company was a partner.

OFAC determined that Ameron did not voluntarily self-disclose this matter and that the apparent violations constitute a non-egregious case. The base penalty amount was $690,000. The settlement amount of $434,700 reflects OFAC's consideration of 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. Weighing against Ameron were its reckless disregard of U.S. sanctions requirements, including by management and supervisory staff; that Ameron knew, or should reasonably have known with reasonable due diligence, that the underlying transactions involved Iran or Cuba; that two of the apparent violations — the approvals of the two capital expenditure requests — resulted in significant harm to U.S. sanctions program objectives on Iran; and that Ameron's compliance program was inadequate to address the sanctions risks it faced given the nature and size of its operations. Weighing in Ameron's favor were that many of the apparent violations involved transactions ultimately not consummated; that Ameron had not received a penalty notice or Finding of Violation from OFAC in the five years preceding the transactions; that Ameron undertook significant remedial steps in response to the apparent violations; and that Ameron provided substantial cooperation during OFAC's investigation, including by providing records in a clear and organized fashion and by agreeing to toll the statute of limitations.

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