A London-based bank settled potential civil liability with OFAC for alleged violations of the now-rescinded sanctions program that banned U.S. exports of any goods, technology, or services to Sudan.

According to OFAC, while the Sudan sanctions program was still in effect, the bank processed transactions through the U.S. financial system on behalf of (i) an entity with a Sudanese branch, where the branch was the instructing party and account signatory on the transactions and (ii) an entity that was a Sudan-based subsidiary of a non-Sudanese entity. Moreover, OFAC stated that certain of the transactions were processed for recipients that appeared to be located in Sudan.

OFAC found that the bank's staff failed adequately to assess and act on potential transactions that had "underlying account and transactional documentation" implying a connection to Sudan. As a result, the bank processed payments totaling $40,599,184 in contravention of the then-effective Sudanese Sanctions Regulations.

OFAC determined that the violations were self-identified and voluntarily disclosed, and did not constitute an egregious case. OFAC noted that the bank took steps to remediate its compliance deficiencies, including (i) creating an executive committee for putting in place compliance policies and procedures, (ii) administering an annual comprehensive risk assessment and (iii) developing custom sanctions compliance staff trainings on the basis of an "employee's tenure and business line."

To settle the charges, the bank agreed to pay a $2,329,991 civil money penalty.

Primary Sources

  1. Treasury Press Release: Settlement Agreement between the U.S. Department of the Treasury's Office of Foreign Assets Control and the Bank of China (UK) Limited
  2. OFAC Enforcement: OFAC Enters Into a $2,329,991 Settlement with Bank of China (UK) Limited for Apparent Violations of the Sudan Sanctions Regulations

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.