The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a $2,774,972 settlement with Yantai Jereh Oilfield Services Group Co. Ltd. and its affiliated companies and subsidiaries worldwide (collectively referred to hereafter as the “Jereh Group”). The Jereh Group’s settlement with OFAC is concurrent with a settlement agreement between the Jereh Group and the U.S. Department of Commerce’s Bureau of Industry and Security. The Jereh Group, headquartered in the city of Yantai, China, has agreed to settle potential civil liability for 11 apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). The apparent violations involved the exportation or re-exportation, and attempted exportation or re-exportation of U.S.-origin goods ultimately intended for end-users in Iran by way of China. The Jereh Group also exported certain U.S.-origin items with knowledge or reason to know that the items were intended for production of, for commingling with, or for incorporation into goods made in China to be supplied, transshipped, or re-exported to end-users in Iran. Two of the 11 shipments were seized by U.S. Customs and Border Protection prior to exiting the United States. The goods in question include oilfield equipment such as spare parts, coiled tubing strings, and pump sets in violation §§ 560.203 and 560.204 of the ITSR. OFAC determined that the Jereh Group did not voluntarily self-disclose the apparent violations and that the apparent violations constitute an egregious case.
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