Processing payments involving sanctioned parties has landed a major bank in hot water with the Office of Foreign Asset Control of the Department of Treasury, to the tune of a $5.3 million penalty. According to OFAC, this action showcases what can happen when a U.S. entity does not take sufficient measures to screen parties prior to engaging in business transactions.
The issue stems from the bank’s operations that involved billing between members of the airline industry. The consortium consisted of approximately 100 US-based members, and 350 non-US based members. Of the non-US based membership, eight were foreign airlines that were either on OFAC’s denied parties list or located in countries that were subject to OFAC sanctions.
Alba Wheels Up’s proprietary cargo and customs management software automatically searches over 180 databases to ensure that the person or company you are doing business with is not subject to any OFAC or other sanctions. Keep your export, import, and similar transactions compliant by letting Alba Wheels Up be your process for screening sanctioned parties and mitigating risk of exposing yourself to penalties by OFAC and other government entities.
- Posted by ALBA Wheels
- On October 12, 2018
- 0 Comments