1. OFAC administers and enforces economic sanctions against targeted foreign countries, regimes, terrorists, international narcotics traffickers, and proliferators 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. UniCredit S.p.A. is the parent company of the UniCredit Group, headquartered in Milan, Italy.
II. APPARENT VIOLATIONS
3. OFAC conducted an investigation of UniCredit S.p.A. in connection with more than 600 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 UniCredit S.p.A. did not voluntarily self-disclose the Apparent Violations and that the Apparent Violations constitute an egregious case.
III. FACTUAL STATEMENT
5. For a number of years, up to and including 2012, UniCredit S.p.A. processed hundreds of transactions through U.S. financial institutions that involved countries, entities, and/or individuals subject to the sanctions programs administered by OFAC. UniCredit S.p.A. 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 to or 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 Interbank Financial Telecommunication ("SWIFT'') Message Type (MT) 202 cover payment messages that did not reference the involvement of sanctioned parties or jurisdictions; executing payments pursuant to trade finance agreements that did not identify the involvement of sanctioned parties or countries subject to the sanctions programs administered by OFAC; and executing commercial transactions with knowledge of interests of countries or entities subject to the sanctions programs administered by OFAC by sending USD payment messages through U.S. financial institutions omitting any reference to such interests. UniCredit S.p.A. conducted transactions in this manner in apparent violation of the Cuban Assets Control Regulations, 31 C.F.R. Part 515; the Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560; the Burmese Sanctions Regulations, 31 C.F.R. Part 537; the Sudanese Sanctions Regulations, 31 C.F.R. Part 538; and the Syrian Sanctions Regulations, 31 C.F.R. Part 542.