Great Western Malting Co. OFAC Settlement: $1.3M (2012)

Between August 2006 and March 2009, Great Western performed various back-office functions for the sales by a foreign affiliate of non-U.S. origin barley malt to Cuba, in apparent violation of the Cuban Assets Control Regulations. A number of the apparent violations involved transactions with Specially Designated Nationals (SDNs) in Cuba, and some involved transactions which included an SDN vessel.

The base penalty amount for the apparent violations was $5,990,000. This matter was not the subject of a voluntary disclosure to OFAC, and the apparent violations constitute a non-egregious case. The settlement amount of $1,347,750 reflects OFAC's consideration of facts and circumstances pursuant to the General Factors under OFAC's Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, App. A. Factors considered included that Great Western is a large, sophisticated entity that did not have an adequate OFAC compliance program in place at the time of the violations; that a number of the violations involved transactions with SDNs and one involved an SDN vessel; that Great Western has no prior OFAC violation history; that Great Western substantially cooperated with OFAC, including entering into a statute of limitations tolling agreement; and that if the subject goods had been shipped from the United States, they would have been eligible for an OFAC license.

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