US Company Found in Violation of OFAC Regulations After Providing False, Misleading Statements

The Treasury’s Office of Foreign Assets Control said a Virginia-based company violated OFAC’s Reporting, Procedures and Penalties Regulations after providing the agency false or misleading statements during an OFAC investigation, according to an Aug. 8 enforcement notice. The violation stems from DNI Express Shipping Company’s sale of farm equipment to Sudan, which OFAC said violated the Sudanese Sanctions Regulations.

OFAC said it issued a 2015 “administrative subpoena” to DNI to investigate the company’s sales to Sudan, saying its “apparent violations” of U.S. sanctions “warranted an administrative response.” OFAC said some of DNI’s responses to the subpoena “were contradictory, false, materially inaccurate, incomplete, and contained misleading statements.” OFAC sent a letter to DNI’s lawyers asking for clarification on DNI’s response, the notice said, and again received a misleading response. OFAC also said the second response “introduced new information” that was in response to the first subpoena, but was not included in DNI’s first response.

OFAC said aggravating factors included DNI’s “reckless disregard” for U.S. sanctions, the fact that it had “actual knowledge” its responses were false or misleading, DNI’s failure to correct its false statements and its failure to fully cooperate with OFAC’s investigation. OFAC said mitigating factors included the fact that DNI is a small business, the fact that it has no prior sanctions history and the fact that some of DNI’s responses “appear to have been filtered through DNI’s outside attorney.”