Alliance Steel Fined for Iran Sanctions Lapses
Compliance Week reported that US’s Department of the Treasury’s Office of Foreign Assets Control recently announced a USD 435,003 settlement with
Compliance Week reported that US’s Department of the Treasury’s Office of Foreign Assets Control recently announced a USD 435,003 settlement with Oklahoma-based manufacturer Alliance Steel regarding apparent violations of Iran sanctions. The alleged violations related to Alliance’s importation of services from an Iranian engineering company. OFAC deemed the case to be non egregious. Alliance cooperated fully with OFAC’s investigation. The company terminated the chief engineer that oversaw the Iranian relationship and changed requirements so that international contracting opportunities must be approved by its president.
Alliance’s business with the unnamed Iranian company took place between October 2013 and October 2018, according to OFAC. On at least 61 occasions, the regulator states, Alliance engaged with the Iranian firm as a third party to provide engineering services. This relationship was overseen by Alliance’s chief engineer and vice president of engineering, whose brother owned the Iranian company. Alliance paid the Iranian company approximately USD 1.45 million during the period. At least a dozen senior management members knew of the arrangement, but the activity didn’t stop until 2018 because of the company’s lack of familiarity with US sanctions requirements. The arrangement was the company’s only international business relationship at the time. Only when a new CEO joined Alliance in October 2018 did the company immediately halt the relationship and self-disclose the apparent violations to OFAC.
Alliance Steel is a Steel Service Center in US engaged in processing and distribution of Hot Rolled Steel, Cold Rolled Steel, Coated Steel, Pre-paint Steel and Stainless Steel