Fokker Services B.V. OFAC Settlement: $10.5M (2014)

On 1,112 occasions, FSBV indirectly exported or reexported aircraft spare parts to Iranian customers. The parts were either procured or repaired in the United States specifically to fill an Iranian customer's order, or were U.S.-origin and subject to export license requirements under U.S. law independent of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR), at the time of shipment. On 41 occasions, FSBV indirectly exported or reexported aircraft spare parts to Sudanese customers or end users. The parts were either procured or repaired in the United States specifically to fill a Sudanese customer's or end user's order, or were U.S.-origin and required the issuance of a license by a Federal agency at the time of shipment. The alleged violations of the ITSR and the Sudanese Sanctions Regulations, 31 C.F.R. part 538 (SSR), occurred from approximately November 16, 2005 through approximately September 1, 2010.

The base penalty for the alleged violations is $145,492,023. OFAC determined that FSBV voluntarily self-disclosed this matter and that the alleged violations constitute an egregious case. FSBV's potential civil liability of $50,922,208, described in OFAC's Prepenalty Notice issued January 30, 2014, is satisfied by: payment of a joint OFAC and BIS civil monetary penalty of $10,500,000; payment of a separate forfeiture of $10,500,000 pursuant to the deferred prosecution agreement (DFA) executed with the U.S. Attorney's Office for the District of Columbia; acceptance of responsibility, pursuant to the executed DFA, for the criminal conduct giving rise to the alleged violations; and acceptance of and adherence to all other terms and conditions of FSBV's agreements with OFAC, the USAO, and BIS.

The U.S. Attorney's Office for the District of Columbia executed a deferred prosecution agreement (DFA) with FSBV as part of the global settlement. Under the DFA, FSBV agreed to a forfeiture of $10,500,000 and accepted responsibility for criminal conduct giving rise to the alleged violations.

FSBV engaged in willful and reckless alleged violations: FSBV knew that it was shipping U.S.-origin parts, and parts supplied from or repaired in the United States, to customers in Iran and Sudan, causing significant harm to the objectives of OFAC's Iran and Sudan sanctions programs given the volume and value of the transactions. FSBV had no formal OFAC compliance program in place during most of the five-year period when the alleged violations occurred, and did not institute sufficient controls to completely stop the conduct upon discovering the alleged violations. Following its internal investigation, FSBV adopted new and more effective internal controls and procedures, including robust enhancements to its export compliance program to prevent a recurrence of U.S. sanctions violations. FSBV provided substantial cooperation during the investigation, including conducting an extensive internal investigation, producing voluminous records in a clear and organized fashion, and agreeing to toll the statute of limitations.

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