The Office of Foreign Assets Control and Alcon Laboratories have reached a $7.6 million settlement agreement to settle potential civil liability stemming from 452 alleged violations of Iran sanctions regulations and 61 violations of Sudan sanctions regulations, after Alcon sold and exported medical end-use surgical and pharmaceutical products to the countries without OFAC authorization, the agency said (here). OFAC found that Alcon didn’t make a voluntary self-disclosure, and showed “reckless disregard” for sanctions requirements by not maintaining a compliance program, but said that Alcon’s alleged violations were not egregious. Mitigating factors that OFAC determined include Alcon’s blank sanctions violation history, the company’s cooperation with OFAC, and the apparent actions’ minimal harm to U.S. sanctions objectives, because the exports involved licensable medical end-use products, OFAC said.

The Office of Foreign Assets Control issued a general license under “Kingpin Act/Panama” on July 1, OFAC said (here). General License 4C authorizes certain transactions involving individuals or entities in the Kingpin Act-designated Soho Mall Panama and “associated complex” to "wind down" operations, maintain the mall complex, conduct activities with non-designated financial institutions, and accept payments by non-designated people and entities, OFAC said. U.S. persons participating in newly authorized "wind down" and maintenance transactions must file a report on the activities with OFAC within 10 business days after they conclude, according to the general license (here). General License 4C supersedes related General License 4B, which OFAC issued June 10 (see 1606130056).

The Alcohol and Tobacco Tax and Trade Bureau is increasing the maximum civil penalty for failure to include health warning labels on domestic and imported alcoholic beverage containers from $11,000 to $19,787 per day, in a final rule (here). The one-time catch-up is required by the Civil Penalties Inflation Adjustment Act Improvements Act of 2015, signed into law in November, and will be followed by annual adjustments for inflation. The increase takes effect July 1.

The Office of Foreign Assets Control is proposing to raise for inflation the maximum amount of civil monetary penalties assessable under five U.S. sanctions programs. The proposed rule (here), which would take effect Aug. 1, would make the following changes:

The Office of Foreign Assets Control has added one individual to its Specially Designated Nationals list, under Democratic Republic of the Congo Sanctions designations, OFAC said (here).

HyperBranch Medical Technology agreed to pay $107,691 as part of a settlement with the Office of Foreign Assets Control, after HyperBranch allegedly exported thousands of units of sealant to a United Arab Emirates distributor, either knowing or having “reason to know” the goods were headed to Iran, which would violate Iran Sanctions Regulations, OFAC said (here). HyperBranch in 2011 allegedly sent 4,000 units of sealant and 80 samples to its UAE distributor, OFAC said. The company, however, voluntarily self-disclosed the apparent violations, which constitute a “non-egregious” case, OFAC determined. HyperBranch is paying $51,851 less than the statutory minimum for the alleged penalties. Among other things, OFAC considered as mitigating factors the high likelihood the medical end-use products were eligible for a specific license, translating to minimal harm to U.S. sanctions program objectives; and the lack of prior HyperBranch OFAC sanctions history.

The Alcohol and Tobacco Tax and Trade Bureau is proposing to amend its labeling and recordkeeping regulations to tighten requirements for certain grape wines exempt from labeling approval. Under the agency’s proposed rule (here), grape wines with an alcohol content higher than 7 percent but exempt from labeling approval would still have to comply with TTB standards for labeling of varietal (grape type) designations, type designations of varietal significance, vintage dates and appellations of origin. The change would only apply to grape wines, not fruit or agricultural wines. Comments are due Aug. 22.

China has indicated a readiness to take on more responsibility and contribute more resources to address global trade challenges and can show leadership by pushing for conclusion of the World Trade Organization Environmental Goods Agreement before September’s G-20 Summit in Hangzhou, China, Treasury Secretary Jack Lew said June 16 during a speech (here). Past Chinese leadership “recognized the potent role that foreign trade and foreign investment could play in transforming China’s economy,” Lew said. “Recently, however, there is a growing sense among foreign businesses that they may no longer be welcome as new regulations and legal changes appear to specifically disadvantage foreign business.” The Chinese government made several commitments to help reduce global steel overcapacity during last week’s U.S.-China Strategic & Economic Dialogue in Beijing (see 1606080041).

The Office of Foreign Assets Control issued one general license under “Kingpin Act/Honduras” entities and three general licenses under “Kingpin Act/Panama” on June 10, OFAC said (here). General License 1B (here) will allow certain transactions and activities to liquidate and “wind down” Honduran Banco Continental, while General licenses 4B (here), 5A (here) and 6A (here) relax restrictions on previously barred transactions with certain designees. 4B will supersede 4A and authorize transactions involving shipment orders placed before May 5, 2016, with the Kingpin Act-designated Soho Mall Panama and “associated complex,” the general license said. General License 5A supersedes General License 5, and permits exportation and re-exportation of software, hardware and related services -- among other activities -- that are necessary for a Panamanian Government examination of the viability of Balboa Bank & Trust, following the government’s seizure of the institution. Finally, General License 6A authorizes similar goods exports to Panama that are necessary to conduct a government investigation of Balboa Securities’ inventory of assets and liability. OFAC has also updated its four frequently questions asked regarding “Counter Narcotics Sanctions,” the agency said (here).

The Office of Foreign Assets Control has added three individuals (here) and removed one entity (here) from its Specially Designated Nationals and Blocked Persons List, OFAC said.