BCC Corporate SA OFAC Settlement: $204.3K (2017)

Between April 9, 2009 and February 3, 2014, credit cards BCCC had issued to its European-based corporate customers were used to make credit card purchases in Cuba. Although Alpha Card and BCCC had policies and procedures in place to review transactions for matches to OFAC's List of Specially Designated Nationals and Blocked Persons for compliance with U.S. economic sanctions laws, Alpha Card and BCCC nevertheless failed to implement controls to prevent BCCC-issued credit cards from being used in Cuba. During this period, BCCC processed 1,818 transactions totaling $583,649.43 for more than 100 distinct corporate customers whose cards were used in Cuba or that otherwise involved Cuba. At the time of the apparent violations, BCCC was a wholly owned subsidiary of Alpha Card Group, which in turn was owned 50 percent by American Express Company (AMEX), a U.S. financial institution.

OFAC determined that AMEX voluntarily self-disclosed the apparent violations to OFAC and that the apparent violations constitute a non-egregious case. The total base penalty amount for the 1,818 apparent violations was $291,825. AMEX agreed to remit $204,277 to settle potential civil liability, reflecting OFAC's consideration of the facts and circumstances pursuant to the General Factors under OFAC's Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A.

The case illustrates that SDN list screening does not substitute for geographic controls: Alpha Card and BCCC had procedures to review transactions against OFAC's SDN list but failed to implement separate controls to prevent BCCC-issued credit cards from being used in Cuba. The aggravating factors reflect that a company acquiring a new subsidiary should assess the level of sanctions risk and related controls for that subsidiary's products — here, none of the companies involved appear to have appreciated the possibility or risk that BCCC-issued credit cards could be used in Cuba following Alpha Card's acquisition of BCCC in March 2009. Providing verifiably inaccurate or incomplete information during OFAC's investigation, including material omissions, was treated as an aggravating factor.

This page summarizes an OFAC enforcement case based on the document archived below. SanctionsLookup assumes no liability for errors, omissions, or inaccuracies in the original documents, this summary, or any changes made to the source documents at any time.

Provided for informational purposes only and does not constitute legal or compliance advice. Always consult the source document directly rather than relying on this summary.