• OFAC Issues Findings of Violation to Two Companies for Failure to Provide Complete and Accurate Subpoena Responses September 9, 2019
    Martin Lutz - Lindsey Roskopf Share on Facebook Share on Twitter Share on LinkedIn More Options

    In August, OFAC announced a Finding of Violation issued to DNI Express Shipping Company (DNI), incorporated in Virginia, for violation of the Reporting, Procedures and Penalties Regulations (RPPR). OFAC issued a Cautionary Letter to DNI for the underlying apparent violations of the Sudanese Sanctions Regulations, but it determined that the company’s conduct in response to OFAC’s investigation warranted an administrative response. According to OFAC, DNI provided information during the investigation, including a subpoena response, that included “contradictory, false, materially inaccurate, materially incomplete, and misleading statements.” Together with the DNI announcement, OFAC announced a Finding of Violation issued to Southern Cross Aviation, incorporated in Florida, also for violating the RPPR “by failing to provide complete information to OFAC in response to an Administrative Subpoena.” In the Southern Cross case, unlike in the DNI case, there was no underlying apparent violation of sanctions regulations. OFAC emphasized in both notices, “Companies and individuals alike should be diligent in their review of information and documentation that may be responsive to an administrative subpoena issued by OFAC.” These notices underscore that OFAC will not hesitate to issue penalties for failure to provide complete and accurate responses to subpoenas, even when there is no underlying violation.

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