U.S. Person-1 OFAC Settlement: $5K (2020)

At the time of the apparent violations, U.S. Person-1 was a civilian direct hire of the U.S. Army stationed at the U.S. embassy in Bogota, Colombia, in a position requiring a security clearance. U.S. Person-1 had also held many national security-related positions prior to being stationed at the embassy.

In 2015, a foreign individual then designated as a specially designated narcotics trafficker ("SDNT-1") was at the embassy for a meeting regarding their designation status. SDNT-1 was accompanied by a former host nation official ("SDNT-2") with whom U.S. Person-1 had a preexisting professional relationship. After the embassy meeting, SDNT-2 introduced SDNT-1 to U.S. Person-1, and the two shortly thereafter began a personal relationship.

U.S. Person-1 was aware that they were having a personal relationship with a specially designated narcotics trafficker. Nonetheless, over the course of a year, U.S. Person-1 bought jewelry, meals, clothing, hotel rooms, and other gifts for SDNT-1 while SDNT-1 was seeking to be removed from the SDN List. During the relationship, U.S. Person-1 conducted internet research concerning the legality of engaging in transactions with persons on OFAC's Specially Designated National and Blocked Persons List, but did not seek further counseling or advice from the various government and legal resources that were readily available in the embassy or by their employer.

These transactions constituted prohibited dealings in blocked property or interests in property of an individual on the SDN List, in apparent violation of 31 C.F.R. § 598.203 of the Foreign Narcotics Kingpin Sanctions Regulations, 31 C.F.R. part 598, on at least 24 occasions. The total transaction value of the apparent violations was about $3,349.33.

The statutory maximum civil monetary penalty applicable in this matter is $36,264,793. OFAC determined that U.S. Person-1 did not voluntarily self-disclose the apparent violations and that the apparent violations constitute an egregious case. Accordingly, under OFAC's Economic Sanctions Enforcement Guidelines, the base civil monetary penalty amount applicable in this matter is the statutory maximum of $36,264,793. The settlement amount of $5,000 reflects OFAC's consideration of the General Factors under the Enforcement Guidelines.

All U.S. persons, including members of the military and civil service stationed abroad, should exercise caution before voluntarily engaging in relationships with foreign persons that the U.S. person knows, or reasonably should know, may have a sanctions nexus, as any financial transaction or exchange of goods or services with a designated person — even in the context of a personal relationship — may constitute a violation of U.S. sanctions. Those serving in national security positions should be particularly cautious, especially when their voluntary relationships can harm or give the appearance of harming the integrity of government processes.

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