Maersk Line, Limited OFAC Settlement: $3.1M (2010)

OFAC alleged that MLL violated the Sudanese Sanctions Regulations, 31 C.F.R. part 538, and the Iranian Transactions Regulations, 31 C.F.R. part 560, by providing unlicensed shipping services for 4,714 shipments of cargo originating in or bound for Sudan and Iran between January 2003 and October 2007. These alleged services involved the transportation of such cargo on vessels owned, operated, and/or chartered by MLL, but time-chartered or sub-time-chartered by MLL's parent, A.P. Moller-Maersk A/S, on at least one leg of the cargo's journey to or from Sudan and Iran.

OFAC determined that MLL did not voluntarily self-disclose the matter and that the alleged violations constituted a non-egregious case. The base penalty amount, calculated based on gross freight charges from origination to destination, is $61,768,000. The settlement amount of $3,088,400 reflects OFAC's consideration of the following general factors: MLL is part of a commercially sophisticated world-wide shipping conglomerate with significant experience operating under licenses issued by OFAC and other U.S. Government agencies; the activities resulted in actual harm to sanctions program objectives by conferring an economic benefit on Sudan and Iran; MLL has not been found to have violated OFAC sanctions in the past five years; MLL substantially and fully cooperated with OFAC's investigation; MLL and its parent undertook substantial remediation; and mitigation is necessary to ensure that OFAC's enforcement response is proportionate, particularly in light of the fact that the base penalty amount is based on gross freight charges for shipping the cargo from origination to destination and the apparent violations involved only a portion of those voyages.

Although OFAC determined that MLL did not voluntarily self-disclose this matter, MLL received substantial mitigation credit for providing OFAC with a voluminous amount of well-organized data regarding its involvement in shipments to or from Sudan and Iran over a five-year period. This included requested information regarding port calls in Sudan as well as additional detailed information not specifically requested by OFAC regarding the use of U.S. flag MLL vessels for intermediate relay legs of shipments to or from sanctioned countries. MLL also promptly responded to all requests for additional information and agreed to two statute of limitations tolling agreements when requested by OFAC.

Substantial and effective remediation measures were undertaken by MLL, including global remedial measures throughout MLL's corporate family to ensure that commercial actions taken by MLL affiliates would not cause MLL to violate U.S. economic sanctions. The global booking system in which MLL participates was updated to ensure MLL's compliance with U.S. economic sanctions programs.

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