Danfoss has entered into a settlement to pay $4,379,810 to the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) for apparent violations of OFAC economic sanctions programs regarding Iran, Syria and Sudan.
No products sold were subject to sanctions or export controls. The apparent violations occurred when a subsidiary company accepted payments made to a US bank account in the UAE from and to customers in sanctioned jurisdictions.
In October 2017, Danfoss submitted an initial notification of voluntary disclosure to OFAC regarding apparent violations of the OFAC sanctions programs. A final voluntary self-disclosure report regarding the apparent violations was submitted to OFAC in February 2019.
According OFAC no evidence was found that Danfoss willfully accepted payments for the purpose of potentially evading sanctions. OFAC said Danfoss took quick action to ascertain the root causes of the conduct at issue, cooperated fully with OFAC, and also adopted new and more effective internal controls and procedures to prevent a recurrence of the apparent violations.
Danfoss has not had any businesses in Iran since November 2018. The last shipment to Iran took place in January 2019.
Read full statement here.
