SETTLEMENT AGREEMENT BETWEEN THE U.S. DEPARTMENT OF THE TREASURY’S OFFICE OF FOREIGN ASSETS CONTROL AND BIOMIN AMERICA, INC.
June 19, 2020
On May 6, 2020 U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that BIOMIN America, Inc. (“BIOMIN America”), an animal nutrition company based in Overland Park, Kansas, has paid $257,862 to settle its potential civil liability for apparent violations of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR).
Specifically, OFAC alleged that between July 2012 and September 2017, BIOMIN America and its owned or controlled foreign entities engaged in sales of agricultural commodities produced outside the United States to Alfarma S.A. in Cuba without authorization from OFAC, which resulted in 44 apparent violations of § 515.201 of the CACR.
BIOMIN America could potentially have received authorization for the transactions but failed to take the steps necessary to do so. Instead, BIOMIN America developed a transaction structure that it incorrectly determined would be consistent with U.S. sanctions requirements. However, because BIOMIN America voluntarily disclosed the potential violations, OFAC determined that this constituted a non-egregious case.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Andy Orr (aorr@eckertsemans.com or 202-659-6625).
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