BNP Paribas, France's largest bank, agreed to pay a $8.9 billion fine for transferring billions of dollars on behalf of Sudanese and Iranian clients in violation of U.S. sanctions. From at least 2002 until 2012, BNP hid the names of sanctioned entities in these countries when processing transactions through the U.S. financial system. As part of its guilty plea, BNP will be prohibited from clearing U.S. dollar transactions through certain business units for one year beginning in January 2015. The bank was also required to separate from 13 employees.
News Briefs
June 30, 2014
-- New York Times
June 11, 2014
Iran is redesigning the Arak heavy water reactor in order to decrease its annual plutonium production from around nine to ten kilograms to less than one kilogram, according to Ali Akbar Salehi, head of the Atomic Energy Organization of Iran. Salehi also said that Iran plans to build eight new nuclear reactors, possibly with Russian assistance, including two additional reactors in Bushehr.
-- Islamic Republic News Agency
June 5, 2014
U.S. authorities announced that Fokker Services, a subsidiary of the Dutch aerospace company Fokker Technologies Holding BV, will forfeit $21 million for selling U.S.-made goods to Burma, Iran, and Sudan in violation of U.S. sanctions. The company provided aircraft parts, technology, and services to these countries over a five year period. In one instance, Fokker Services falsified a work order for an aircraft part by representing that it belonged to a Portuguese airline, when the part actually belonged to Iran Air. Fokker Services voluntarily disclosed its trade violations to U.S. prosecutors in 2010; the $21 million forfeiture represents the value of transactions in the company's disclosure. Fokker Services may have been prompted to admit its violations in the wake of another case, involving the Dutch firm Aviation Services International, its owner, Robert Kraaipoel, and his son. In 2009, the Kraaipoels pleaded guilty to conspiracy to export aircraft parts to Iran. They cooperated with U.S. investigators, who may have learned about the Kraaipoels' business dealings with Fokker Services.
-- Washington Post
May 12, 2014
The U.N. Panel of Experts responsible for monitoring the Security Council's sanctions on Iran reports that Tehran's illicit procurement efforts for its nuclear and missile programs may have slowed. It is not clear, however, whether this decrease is due to better concealment by Iran, according to the Panel. The Panel's report details Iran's use of its petrochemical industry as a cover for the procurement of valves for the Arak heavy water reactor, and warns countries that Iran is using freight-forwarding firms to mask the destination and end-use of shipments. The report also cites a 2013 directive by Iran’s Supreme National Security Council ordering Iranian banks and state firms to set-up front companies for Khatam al-Anbiya Construction Company in an effort to avoid U.N. sanctions. Khatam al-Anbiya has been sanctioned by the United Nations for supporting Iran's nuclear program.
-- Reuters
April 23, 2014
Pennsylvania businessman Helmut Oertmann has agreed to plead guilty to attempting to ship a 50,000 pound horizontal lathe from the United States to Iran without a license. According to court documents, Oertmann, 76, conspired with three Iranians and an Indian to ship the $800,000 machine, known as a "peeler," to Iran by way of the United Arab Emirates. Authorities intercepted the peeler and returned it to Oertmann's company, Hetran Inc. of Orwigsburg, Pennsylvania. The machine was later sold to a Russian firm. Oertmann faces up to 10 years in prison and a fine of $250,000, while his company could be fined up to $1 million.
-- Pittsburgh Tribune-Review
April 14, 2014
The Islamic Republic of Iran Shipping Lines announced the opening of a direct shipping line between Iran's southern port of Bandar Abbas and China's Dalian and Lianyungang ports.
-- Fars News Agency
April 14, 2014
Lee Specialities Ltd. of Red Deer, Alberta, Canada was fined $90,000 for trying to export Viton O-rings to an Iranian address in January 2012, in violation of the Special Economic Measures Act. The Act is intended to prevent nuclear weapon-related material from entering Iran. The O-rings, made from a special heat-resistant synthetic rubber, are often used in oilfield parts but can also be used in nuclear reactors. The order was placed by Kan Dana Middle East LLC, which has affiliates in Iran and Dubai. Canada Border Services Agency seized the shipment during a routine inspection at Calgary International Airport.
-- National Post
April 7, 2014
Spain's Civil Guard arrested four individuals on charges of attempting to export dual-use industrial machinery to Iran. Three of the suspects are Spanish nationals from the same family, while the fourth is an Iranian. Spanish authorities began their investigation after learning that two Leifeld metalworking machines had been illegally brought into Spain from the United Kingdom. The equipment has civilian applications but can also be used to manufacture missile casings or parts for uranium enrichment. The suspects are believed to have sent engineering plans to Iran using an elaborate network of front companies.
-- El Pais
April 4, 2014
Boeing and General Electric received licenses from the U.S. Treasury Department to export spare parts for commercial aircraft to Iran. The licenses were granted as part of a temporary sanctions relief deal that took effect in January, which only cover components needed to ensure the safe operation of older Boeing planes sold to Iran before the 1979 revolution.
-- Reuters
March 17, 2014
Asghar Zarean, head of nuclear security for Iran's Atomic Energy Organization, accused foreign intelligence agencies of tampering with pumps imported by Iran for use in the Arak heavy water reactor.
-- Reuters