OFAC CIVIL ENFORCEMENT: APOLLO AVIATION GROUP, LLC
December 10, 2019
On November 7, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $210,600 settlement with Apollo Aviation Group, LLC (Apollo), for alleged civil liability for violations of sanctions on Sudan. Apollo leased three aircraft engines to a United Arab Emirates company, which then subleased the engines to a Ukrainian airline, which then installed them on an aircraft wet leased to Sudan Airways. Sudan Airways is included on OFAC’s SDN list due to its relation to the Government of Sudan.
According to OFAC’s announcement, “Apollo did not periodically monitor or otherwise verify its lessee’s and sub lessee’s adherence to the lease provision requiring compliance with U.S. sanctions laws during the life of the lease. As a result, Apollo learned where its engines had actually flown only after the engines were returned to Apollo at the end of the lease.” OFAC considered Apollo’s sophistication to be an aggravating factor, but its subsequent compliance to be a mitigating factor, when calculating the civil penalty. OFAC concluded, “This enforcement action highlights the importance of companies operating in high-risk industries to implement effective, thorough and on-going, risk-based compliance measures, especially when engaging in transactions concerning the aviation industry.”
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).
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