OFAC administers and enforces economic and trade 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. Respondent is a global shipping and logistics company headquartered in Port Washington, New York.
II. APPARENT VIOLATIONS
On December 13, 2011 and June 1, 2012, OFAC issued administrative subpoenas to Respondent, to which it responded on January 12, 2012, July 13, 2012, and August 13, 2012. The administrative subpoena responses identified transactions that appear to have violated the Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 C.F.R. part 544 (WMDPSR), issued under the authority of the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06 (IEEPA), and other statutes. Specifically, between on or about February 18, 2011 and on or about November 14, 2011, Respondent appears to have violated § 544.201 of the WMDPSR when Respondent dealt in blocked property or interests in blocked property by processing five electronic funds transfers, totaling approximately $472,861, that pertained to payments associated with blocked vessels identified on OFAC’s List of Specially Designated Nationals and Blocked Persons (“SDN List”). These blocked vessels were owned or controlled by, directly or indirectly, the Islamic Republic of Iran Shipping Lines (IRISL), an entity designated by OFAC on September 10, 2008 pursuant to Executive Order 13382 of June 28 2005, “Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters” (E.O. 13382).1 The transactions described in the Agreement will be referred to collectively as the “Apparent Violations” hereafter.
III. FACTUAL STATEMENT
In the course of the conduct giving rise to the Apparent Violations identified in the Agreement, MID-SHIP acted as a shipbroker, negotiated charter party agreements, and earned commission payments in return for its services. MID-SHIP’s services included the processing and facilitation of payments from charterers to disponent owners and other brokers. For example, once a vessel completed its voyage and discharged its goods at a port as specified in the charter party agreement, the charterer would transfer monies owed to the disponent owner to MID-SHIP. MID-SHIP, in turn, would deduct its commission from these funds and transfer the remaining amount to the vessel or disponent owner.