Chevron Corporation OFAC Settlement: $2M (2007)

The United Nations Oil-for-Food Program permitted the former Government of Iraq to sell its oil under certain limited conditions — namely, that the proceeds of all sales of Iraqi oil were to be deposited into an escrow bank account monitored by the United Nations and used to purchase humanitarian goods for the benefit of the Iraqi people. Under the program, the former Government of Iraq selected the companies and individuals who received rights to purchase Iraqi oil, known as "allocations." From in or about 2000 through in or about March 2003, the former Iraqi Government demanded payment of secret illegal surcharges on those allocations. From in or about April 2001 through in or about May 2002, Chevron purchased Iraqi oil from third-party intermediaries and/or allocation holders. Although Chevron took certain steps designed to prevent the purchase from third parties of Iraqi oil on which illegal surcharges had been paid, OFAC alleged that such procedures proved inadequate and that certain payments included illegal surcharges.

Chevron did not voluntarily disclose this matter to OFAC. The $2 million remitted to OFAC represents Chevron's share of a $30 million multi-agency settlement of the alleged violations.

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