A U.S.-based travel assistance services company settled its potential civil liability with OFAC for apparent violations of the Cuban Assets Control Regulations.
According to OFAC, the U.S. company served as a travel service provider for two Canadian insurers that provided travel insurance for non-U.S. Canadian subscribers who traveled to Cuba. OFAC explained that the company intentionally avoided processing payments directly to the travelers while they were located in Cuba and to Cuban parties. Instead, the company (i) provided post-travel claim reimbursements to the individual Canadian travelers and (ii) used a Canadian affiliate to indirectly pay Cuban service providers, in violation of OFAC Rule 515.201 ("Transactions involving designated foreign countries or their nationals").
OFAC stated that the company "formally codified . . . [a regulatory avoidance] process in its procedures manual." OFAC determined that the company voluntarily self-disclosed the apparent violations, but that the conduct constituted an egregious case.
To settle the charges, the company agreed to pay $5,864,860.
Primary Sources
- OFAC Enforcement Information: OFAC Enters $5,864,860 Settlement with Generali Global Assistance, Inc. for Apparent Violations of the Cuban Assets Control Regulations
- OFAC Press Release: Settlement Agreement between the U.S. Department of the Treasury's Office of Foreign Assets Control and Generali Global Assistance, Inc.
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