Ofac fines forwarder for sanctions breaches
The US Office of Foreign Assets Control (Ofac) has reached a USD 1.61 million settlement with freight forwarder Fracht FWO Inc over apparent violations of various sanctions regimes, including Venezuela and Iran.
Between May and June 2022, Fracht contracted a charter operated by Emtrasur, a subsidiary of blocked Venezuelan carrier Conviasa, using aircraft YV-3531, traced to designated Iranian airline Mahan Air and crewed by Iranian nationals. Ofac deemed the case egregious and not voluntarily self-disclosed, but credited Fracht’s cooperation and remedial steps, including tighter screening, mandatory legal review, added compliance staff and enhanced audits.
The action underscores the need for intermediaries to know counterparties, screen assets such as aircraft and prioritise compliance over urgency. (ah)