OFAC and Bupa Florida agreed to a fine of $128,704 to settle liabilities for 39 apparent violations of the anti-narcotics sanctions programs and Cuba Asset Control Regulations (CACR) between March 2008 and March 2011. They offered “insurance support services for healthcare policies” for people sanctioned under the two anti-narcotics sanctions regulations, as well as reimbursing claims for medical treatment in Cuba.
The base penalties for these self-reported, non-egregious violations was only $95,337 (total transaction value was a touch over $190,000) – so why was the final amount so high? Let OFAC tell you:
OFAC found the following to be aggravating factors in this case:
- BupaFlorida acted with reckless disregard for U.S. sanctions requirements and failed to exercise aminimum degree of caution or care to avoid the conduct that led to the apparent violations;
- BupaFlorida had actual knowledge or reason to know that the policyholders it insured (andbeneficiaries of claims it serviced) were SDNTs or SDNTKs;
- Bupa Florida’s conduct resulted inharm to U.S. sanctions program objectives; and
- Bupa Florida does not appear to have had anOFAC compliance program at the time the apparent violations occurred.
OFAC considered thefollowing to be mitigating factors:
- Bupa Florida has not received a penalty notice or Finding ofViolation in the five years preceding the earliest date of the transactions giving rise to theapparent violations;
- Bupa Florida has taken steps to implement more effective controls andprocedures as its remedial response to the apparent violations; and
- Bupa Florida substantiallycooperated with OFAC’s investigation by submitting the relevant documents and information ina clear and organized fashion, and by executing and then extending a statute of limitations tollingagreement.
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Posted with BlogsyFiled under: Cuba Sanctions, Narcotics Trafficking, OFAC Updates, Settlements
