Red Bull gives you civil monetary penalties: OFAC Enforcement Action

On Friday, OFAC released its settlement with Red Bull North America (RBNA), issuing a civil monetary penalty of $89,775 vs. a base penalty of $105,000 and a maximum penalty of $455,000. Why? Because, in 2009, the firm violated the Cuban Assets Control Regulations (CACR) by filming a documentary in Cuba, without getting OFAC’s blessing.

Here’s the official explanation of why the reduction in fine was so slim (normally, you get at least a 25% discount for a first offense) – emphasis added:

  • RBNA had prior knowledge of U.S. sanctions on Cuba and took steps to
    conceal the transactions
    ;
  • RBNA is a U.S. subsidiary of a sophisticated multinational company
    with extensive experience in international trade;
  • RBNA made a remedial response by instituting
    an OFAC compliance program; and
  • RBNA has not received a penalty notice or Finding of
    Violation from OFAC in the five years preceding the date of the unauthorized travel to Cuba.

It should be noted that, while RBNA did not voluntarily self-disclose the violations, they were considered non-egregious. And that keeps you out of the really expensive quandrant of the penalty grid.

Link:

OFAC Enforcement Information

 

June 27, 2014: OFAC Issues TSRA Biennial Licensing Report

It obviously takes a long time to collate this report, as it covers licensing activity under the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) from October 2010 to September 2012. This is the 6th one.

Some highlights:

  • 3191 license applications, which is more than an 11% increase over the prior period
  • 91.2% were for licenses for the Iranian sanctions program
  • The average wait time for a license was 93 business days (18.6 weeks) and 20 days (4 weeks) for amendments to existing licenses

Short (4 pages), but informative – read it now, or wait until 2016…

Links:

OFAC Notice

Biennial Report of Licensing Activities

 

Who is ABUBAKAR MOHAMMED SHEKAU?

Courtesy of the United Nations:

QI.S.322.14. ABUBAKAR MOHAMMED SHEKAU

Date on which the narrative summary became available on the Committee’s website: 26.06.14

Abubakar Mohammed Shekau was listed on 26 June 2014 pursuant to paragraphs 2 and 3 of resolution 2161 (2014) as being associated with Al-Qaida for “participating in the financing, planning, facilitating, preparing, or perpetrating of acts or activities by, in conjunction with, under the name of, on behalf of, or in support of” and “otherwise supporting acts or activities of” Jama'atu Ahlus-Sunna Lidda'Awati Wal Jihad (Boko Haram) (QE.B.138.14) and the Organization of Al-Qaida in the Islamic Maghreb (AQIM) (QE.T.14.01).

Additional information:

Abubakar Mohammed Shekau is the leader of Jama'atu Ahlis Sunna Lidda'Awati Wal-Jihad (Boko Haram) (QE.B.138.14). Under Shekau’s leadership, Boko Haram has maintained a relationship with the Organization of Al-Qaida in the Islamic Maghreb (AQIM) (QE.T.14.01) for training and material support purposes. For example, Boko Haram gained valuable knowledge on the construction of improvised explosive devices from AQIM. A number of Boko Haram members fought alongside Al-Qaida-affiliated groups in Mali in 2012 and 2013 before returning to Nigeria with terrorist expertise.

Under Shekau’s leadership, Boko Haram has been responsible for a series of major terrorist attacks, including a wave of bombings in Kano, Nigeria in January 2012 that killed more than 180 people in a single day. Another major attack was the 26 August 2011 bomb attack on the United Nations headquarters in Abuja that killed at least 21 people and wounded scores more. The group was also responsible for the 25 December 2011 attack on the Saint Theresa Catholic Church in Madalla, Nigeria, that killed at least 37 and wounded approximately 50.

Since summer 2012 Boko Haram has undertaken a campaign of violence against Nigerian schools and students. In June 2013, the group attacked schools in Maiduguri and Damaturu, Nigeria, killing at least 22 children; in July, an attack on a school in the village of Mamudo, Nigeria, killed at least 42 people, most of them students. On 29 September 2013, Boko Haram attacked an agricultural school in Yobe, Nigeria, shooting dead 50 students in their dormitory as they slept.

On 14 April 2014, Boko Haram abducted approximately 300 girls from a school in northern Nigeria. Shekau claimed responsibility for the attack in a video released by Boko Haram and threatened to sell the girls into slavery. Boko Haram militants subsequently attacked a staging base for rescuers on 5 May 2014, killing an additional 310 people.

In a statement released in November 2012, Shekau expressed Boko Haram’s solidarity with Al-Qaida affiliates in Afghanistan, Iraq, North Africa, Somalia and Yemen. He also encouraged fighters across Africa and other areas to continue engaging in terrorist attacks. Shekau’s media statements have been published on known jihadist forums.

Related listed individuals and entities:

Al-Qaida (QE.A.4.01), listed on 6 October 2001

The Organisation of Al-Qaida in the Islamic Maghreb (QE.T.14.01), listed on 6 October 2001

Jama'atu Ahlis-Sunna Lidda'awati Wal Jihad (Boko Haram) (QE.B.138.14), listed on 22 May 2014

Ansarul Muslimina fil Biladis Sudan (QE.A.142.14), listed on 26 June 2014

 

 

June 27, 2014: OSFI catches up to Abubakar Mohammed Shekau and Ansarul Muslimina Fi Biladis-Sudan

Since the designation by both the UN and DFAT, Canadian regulators added the following person:

QI.S.322.14 Name: 1: ABUBAKAR 2: MOHAMMED 3: SHEKAU 4: na

Name (original script): أبو بكر محمد الشكوى

Title: Imam Designation: na DOB: 1969 POB: Shekau Village, Yobe State, Nigeria Good quality a.k.a.: Abubakar Shekau Low quality a.k.a.: a) Abu Mohammed Abubakar bin Mohammed b) Abu Muhammed Abubakar bi Mohammed c) Shekau d) Shehu e) Shayku f) Imam DarulTauhid g) Imam Darul Tawheed Nationality: Nigerian Passport no.: na National identification no.: na Address: Nigeria Listed on: 26 Jun. 2014 Other information: Member of the Kanuri tribe. Physical description: eye colour: black; hair colour: black. Photo available for inclusion in the INTERPOL-UN Security Council Special Notice. Leader of Jama'atu Ahlis Sunna Lidda'Awati Wal-Jihad (Boko Haram) (QE.B.138.14). UnderShekau’s leadership, Boko Haram has been responsible for a series of major terrorist attacks.


and entity:

 

QE.A.142.14. Name: ANSARUL MUSLIMINA FI BILADIS SUDAN

Name (original script): أنصار المسلمین في بلاد السودان

A.k.a.: a) Ansaru b) Ansarul Muslimina fi Biladis Sudan c) Jama'atu Ansaril Muslimina fi Biladis Sudan (JAMBS) d) Jama’atu Ansarul Muslimina fiBiladis-Sudan (JAMBS) e) Jamma’atu Ansarul Muslimina fi Biladis-Sudan (JAMBS) f) Vanguards for the Protection of Muslims in Black Africa g)Vanguard for the Protection of Muslims in Black Africa F.k.a.: na Address: Nigeria Listed on: 26 Jun. 2014 Other information:Terrorist and paramilitary group established in 2012 and operating in Nigeria. Associated with the Organization of Al-Qaida in the Islamic Maghreb (AQIM) (QE.T.14.01), Jama'atu Ahlis Sunna Lidda'Awati Wal-Jihad (Boko Haram) (QE.B.138.14) and Abubakar Mohammed Shekau (QI.S.322.14).

 

to their Consolidated List. Note that both the press release and the notice referenced by DFAT has the narrative summaries for both new listings.

 

Links:

OSFI Notice

United Nations Security Council (UNSC) Press Release

 

June 27, 2014: HMT makes one new TAFA Final Designation: Nur Idiris Hassan Nur

On Friday, Her Majesty's Treasury (HMT), under the authority of the Terrorist Asset-Freezing etc. Act of 2010 (TAFA) made a Final Designation (which is good for 1 year) for the following individual:

Hassan Nur, Nur, Idiris

DOB: 31/03/1993.


POB: Kotka, Finland


Nationality: Finnish


Passport Details: FIN/17145749 Valid: 14/05/2006 – 14/05/2016
Address: Manchester, M16, United Kingdom

Other Information: UK Designation Only
Group ID: 13001

Link:

HMT Notice

 

UN, DFAT add one terror group and one of its leaders

Today, Australian regulators added the following person:

QI.S.322.14 Name: 1: ABUBAKAR 2: MOHAMMED 3: SHEKAU 4: na

Title: Imam Designation: na DOB: 1969 POB: Shekau Village, Yobe State, Nigeria Good

quality a.k.a.: Abubakar Shekau Low quality a.k.a.: a) Abu Mohammed Abubakar bin

Mohammed b) Abu Muhammed Abubakar bi Mohammed c) Shekau d) Shehu e) Shayku f)

Imam Darul Tauhid g) Imam Darul Tawheed Nationality: Nigerian Passport no.: na National

identification no.: na Address: Nigeria Listed on: 26 Jun. 2014 Other information:

Member of the Kanuri tribe. Physical description: eye colour: black; hair colour: black. Photo

available for inclusion in the INTERPOL-UN Security Council Special Notice. Leader of

Jama’atu Ahlis Sunna Lidda’Awati Wal-Jihad (Boko Haram) (QE.B.138.14). Under Shekau’s

leadership, Boko Haram has been responsible for a series of major terrorist attacks.

and his associated group:

QE.A.142.14. Name: ANSARUL MUSLIMINA FI BILADIS SUDAN

A.k.a.: a) Ansaru b) Ansarul Muslimina fi Biladis Sudan c) Jama’atu Ansaril Muslimina fi

Biladis Sudan (JAMBS) d) Jama’atu Ansarul Muslimina fi Biladis-Sudan (JAMBS) e)

Jamma’atu Ansarul Muslimina fi Biladis-Sudan (JAMBS) f) Vanguards for the Protection of

Muslims in Black Africa g) Vanguard for the Protection of Muslims in Black Africa F.k.a.: na

Address: Nigeria Listed on: 26 Jun. 2014 Other information: Terrorist and paramilitary

group established in 2012 and operating in Nigeria. Associated with the Organization of Al-

Qaida in the Islamic Maghreb (AQIM) (QE.T.14.01), Jama’atu Ahlis Sunna Lidda’Awati Wal-

Jihad (Boko Haram) (QE.B.138.14) and Abubakar Mohammed Shekau (QI.S.322.14).

to the DFAT Consolidated List, after their designation by the United Nations.

Also discovered that the UN Notice lists URLs that include narrative summaries about these folks. I’ll make separate posts of those narratives, but will post the URLs here.

Link:

UN Notice

UN Narrative Summary for Abubakar Mohammed Shekau

UN Narrative Summary for Ansarul Muslimina Fi Biladis Sudan

 

OFAC Enforcement Action: Network Hardware Resale LLC settles for $64,758 less P/L

On Wednesday, OFAC released the details of a settlement with Network Hardware Resale LLC (NHR), who, between 2008 and 2011, made 16 shipments to Sudan and 2 to Iran of network equipment and accessories. The base penalty for these voluntarily self-disclosed, non-egregious violations was $143,906.

And this is how OFAC arrived at its decision:

Aggravating factors:

    • NHR is a sophisticated company with worldwide operations that dealsin telecommunications and networking equipment
    • NHR demonstrated reckless disregard forU.S. sanctions requirements by engaging in worldwide commerce without implementing evenbasic OFAC compliance measures prior to discovering the apparent violations
    • The apparentviolations constitute a pattern of conduct consisting of 18 transactions over the course of almostthree years

Mitigating factors:

    • NHR took prompt corrective action in response to the apparent violations
    • NHR cooperated with OFAC during its investigation of the apparent violations, including by entering into a statute of limitations tolling agreement
    • NHR has no prior sanctions history, including not being the subject of a penalty notice or Finding of Violation in the five years preceding the earliest date of the transactions giving rise to the apparent violations.

Link:

OFAC Enforcement Action