I’m back after an intense trial last week which prevented me from posting on any United States Department of Treasury Office of Foreign Assets Control (“OFAC”) related issues. Fortunately, OFAC seemed to be having a slow week last week and they only published one new announcement which, to my surprise, was another release of civil penalties information. But how is that possible you ask? Did they not just release such information the week before in accordance with their usual course of conduct. OFAC moves in mysterious ways, we can only guess as to why they would make such a move. Guess until we actually read the penalty.

Global delivery powerhouse DHL was fined a whopping $9,444,777.00 to settle allegations that they violated the Iranian Transactions Regulations (“ITR”), The Sudanese Sanctions Regulations, and the Export Administration Regulations (“EAR”). WOW. I don’t recall seeing a penalty this large, which is probably why OFAC gave them the special privilege of having their remittance published outside of the normal time frame.

According to the publication, OFAC had OFAC alleged that, between August 2002 and March 2007, DHL made numerous shipments to Iran and Sudan in violation of the OFAC Regulations and that the company failed to maintain records with respect to other shipments to those countries. BIS alleged that between June 2004 and September 2004, DHL made certain unlicensed exports to Syria in violation of the EAR and in connection with a number of other exports to Syria failed to retain airway bills and other export control documents in violation of the EAR. DHL did not voluntarily disclose this matter to OFAC or BIS.

I have mentioned many notable changes in OFAC conduct since the entering of the Obama Administration, but I never saw this one coming. Here’s a warning to all of those who have scoffed at OFAC’s past penalties: OFAC is bringing down the hammer. In the past I have made light of the light penalties issued against some of the big multi-national companies who ended up on the wrong side of the sanctions regulations. But there is nothing light about this. DHL I suggest you expand your compliance department’s budget.

Treasury Press Release Concerning DHL $9.44 Million Settlement.