1. OFAC administers and enforces economic sanctions against targeted foreign countries, regimes, terrorists, international narcotics traffickers, and protiferators of weapons of mass destruction, among others. OFAC acts under Presidential national emergency authorities, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under U.S.jurisdiction.
2. Bank Austria is the Austrian subsidiary of UniCredt S.p.A., the parent company of the UniCredit Group headquartered in Milan, Italy. Bank Austria is headquartered in Vienna, Austria.
II. APPARENT VIOLATIONS
3. OFAC conducted an investigation of Bank Austria in connection with more than 120 transactions processed to or through the United States or involving U.S. financial institutions in apparent violation of various OFAC sanctions programs.
4. OFAC determined that Bank Austria did not voluntarily self-disclose the Apparent Violations, the Apparent Violations identified below in Paragraph 15 constitute a nonegregious case, and the Apparent Violations identified below in Paragraphs 16-20 constitute an egregious case.
III. FACTUAL STATEMENT
5. For a number of years, up to and including 2012, Bank Austria processed transactions through U.S. financial institutions that involved countries, entities, or individuals subject to the sanctions programs administered by OFAC. Bank Austria appears to have engaged in conduct that removed, omitted, or did not reveal references to, or the interest or involvement of sanctioned parties in U.S. Dollar ("USD") payment messages sent through U.S. financial institutions. The specific payment practices the bank utilized in order to process sanctions-related payments to or through the United States included the use of Society for Worldwide lnterbank Financial Telecomnunication ("SWIFT) Message Type (MT) 202 cover payment messages that did not reference the involvement of sanctioned parties or jurisdictions and executing payments related to trade finance agreements that did not identify the involvement of sanctioned parties or countries subject to the sanction programs administered by OFAC to or through U.S. financial institutions in apparent viohtion of the Iranian Transactions and Sanctions Regulations, 31 C.F .R. Part 560; the Sudanese Sanctions Regulations, 31 C.F .R. Part 538; the Burmese Sanctions Regulations, 31 C.F.R. Part 537; the Syrian Sanctions Regulations, 31 C.F.R. Part 542; and the Cuban Assets Control Regulations, 31 C.F.R. Part 515.