The Treasury Department’s Office of Foreign Assets Control (OFAC) said this week that a Colorado-based medical equipment manufacturer will pay $126,000 to settle charges that it knowingly shipped medical devices to Iran through the United Arab Emirates.
The company has also been charged with failing to provide documents in response to two subpoenas from the office during its initial investigation.
According to the OFAC statement, the matter was not voluntarily disclosed and constituted an egregious case because the export is believed to have been undertaken through willful and reckless conduct from the company’s management. The OFAC found that the company deliberately concealed the fact that the goods were destined for Iran and did not have any trade or export compliance program in place when the shipment was made.
OFAC said that the company could have been spared some of this had it taken any type of remedial action when the violation was discovered.
The fine is around half of what similar penalties typically are because the exporter has no previous sanctions against it and the goods were likely eligible for a license from the government body.