The United States Department of Treasury Office of Foreign Assets Control (“OFAC”) has released its monthly civil penalities information. While there were only two entities penalized this month, both for violations of the Cuban Assets Control Regulations, one of the penalties was quite significant.

That penalty was imposed against Varel Holdings, Inc., a Dallas, Texas based entity, in the amount of $110,000.00 for the unlicensed export of goods in which Cuba and/or Cuban nationals had an interest by one of Varel’s foreign subsidiary. Varel International manufactures drill bits for the global oil & gas drilling community as well as for the blasthole mining, industrial, construction and water well drilling communities.

The Cuban Assets Control Regulations limits transactions between U.S. Persons and Cuba and/or its nationals. These regulations call for the obtainment of a specific license when exporting to Cuba. Those individuals and entities violating such licensure requirements can face both civil and criminal penalties.

If you feel that you may have violated the Cuba Assets Control Regulations please contact the author at 202-280-6370 or by email at ferrari@ferrari-legal.com