Deutsche Bank Trust Americas OFAC Settlement: $157.5K

On August 6, 2015, DBTCA processed a $28,849,038.39 funds transfer through the United States involving a property interest of IPP Oil Products (Cyprus) Limited ("IPP"), an entity designated by OFAC on July 30, 2015 pursuant to Executive Order 13661, "Blocking Property of Additional Persons Contributing to the Situation in Ukraine." The payment was related to a series of purchases of fuel oil that involved IPP. Although the payment instructions did not contain an explicit reference to a person on OFAC's SDN List or to a country or region subject to comprehensive sanctions, DBTCA had reason to know of IPP's potential interest in the transaction due to notice provided by the U.S. counsel of a non-accountholder party ("the Entity").

Senior personnel within DBTCA's anti-financial crime division and a representative from its counsel's office received information from the Entity's U.S. counsel indicating that DBTCA would be receiving a high-value payment that had to be completed that day to meet a strict deadline. During a phone call and subsequent email communications, DBTCA became aware that the payment was related to a fuel oil purchase in which IPP had at some point been involved. The Entity's U.S. counsel verbally represented that IPP's title to the fuel oil had transferred to the Entity prior to IPP's designation. Email communications from that same counsel, however, called into question whether IPP's interest in the oil or funds had been extinguished. DBTCA processed the transaction approximately one hour after the Entity first contacted the bank, without taking steps to independently corroborate the representations made by the Entity's U.S. counsel. DBTCA appears to have violated § 589.201 of the Ukraine Related Sanctions Regulations, 31 C.F.R. part 589.

The statutory maximum civil monetary penalty applicable in this matter is $57,698,076.78. OFAC determined that DBTCA did not voluntarily self-disclose the apparent violation and that the apparent violation constitutes a non-egregious case. Under OFAC's Economic Sanctions Enforcement Guidelines, the total base penalty amount for the apparent violation is $250,000. The settlement amount of $157,500 reflects OFAC's consideration of relevant facts and circumstances pursuant to the General Factors under the Enforcement Guidelines.

Financial institutions should take a risk-based approach to sanctions compliance. In this instance, DBTCA was aware that it would be receiving a large funds transfer related to a series of transactions that at some point involved an SDN. OFAC would have expected DBTCA to take steps to corroborate independently the representations it received in order to assure itself that IPP did not have a present, future, or contingent interest in the payment it was requested to process, regardless of its time sensitivity.

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.