UK Fines Energy Company for Violating Syria Sanctions Regime
The U.K. penalized energy company Tracerco for violating its sanctions regime on Syria, the Office of Financial Sanctions Implementation announced in a June 29 update. The penalty, which was imposed in May, was about $18,000 and for making funds available to benefit a sanctioned entity without a license from OFSI.
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A U.K.-registered company and the United Arab Emirates-based subsidiary of Johnson Matthey, Tracerco provides measuring products and services to the oil and gas industry, OFSI said. Between 2017 and 2018, Tracerco made two payments to Syrian Arab Airlines for an employee to take flights home, booking the flights through a UAE travel agency, thereby making funds available for a designated entity.
The company made a voluntary disclosure in the case, leading to OFSI dropping the penalty by 50%. "The payments that constituted breaches of financial sanctions were flights for an employee of Tracerco to Syria as part of an employment remuneration package," OFSI said. "Although these payments were made as part of an employee's remuneration package, they were still breaches of financial sanctions regulations. Companies and individuals must ensure that they carry out financial sanctions due diligence on all transactions they undertake, not just those relating to customers or suppliers."