First Data Resources OFAC Settlement: $23.3K (2015)

First Data provided third party data processing services to a Specially Designated Narcotics Trafficker (SDNT) in alleged violation of § 598.203 of the Foreign Narcotics Kingpin Sanctions Regulations (FNKSR), between on or about February 23, 2011 and June 7, 2011. First Data's automated interdiction software flagged the SDNT as a potential match on February 25, 2011, giving First Data reason to know it was servicing an SDNT. The alleged violations arose from two distinct deficiencies in First Data's OFAC compliance program: one that incorrectly categorized potential matches to OFAC's SDN List, and a second that allowed First Data's client to reactivate the SDNT's access to First Data services even after First Data had deactivated that access to comply with OFAC regulations.

OFAC determined that First Data voluntarily self-disclosed the alleged violations and that the case is non-egregious. The total transaction value for the alleged violations was $69,144 and the base penalty amount was $34,572. The settlement amount of $23,336 reflects 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 alleged violations stemmed from two specific deficiencies in First Data's OFAC compliance program: one that incorrectly categorized potential matches to OFAC's SDN List, and another that allowed a client to reactivate an SDNT's access after First Data had already deactivated it to comply with OFAC regulations. OFAC noted that First Data failed to exercise a minimal degree of caution or care in reviewing information flagged by its interdiction software, and that First Data had reason to know it was providing services to an SDNT from the date the software generated the match. First Data took remedial action to correct the categorization deficiency and cooperated with OFAC during the investigation.

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