Marine Insurance Group Settles Alleged OFAC Violations
An international marine mutual insurance group agreed to pay nearly $350,000 to settle potential liability for alleged violations of U.S. sanctions against Cuba, Sudan and Iran, Treasury Department’s Office of Foreign Assets Control said May 9. The American Steamship Owners Mutual Protection and Indemnity Association agreed to remit $348,000, OFAC said. The New York-based nonprofit insurance association, also called the American Club, is made of merchant ship owners and charters.
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OFAC alleges that between January 2004 and June 2006, the American Club processed $40,584 worth of protection and indemnity insurance claims involving Cuba. In almost the same period -- from January 2004 till August 2006 -- the American Club processed more than $488,000 in insurance claims and letters of indemnity and undertaking/guarantee involving Iran, OFAC said. Between November 2003 and March 2007, the American Club also processed insurance claims, plus letters of undertaking and indemnity involving Sudan, OFAC said. The total base penalty amount for the apparent violations was $1,729,000, OFAC said. It determined the American Club did not voluntarily self-disclose the apparent violations, but the apparent violations were a non-egregious case.