Washington — A Bangkok-based plastics company has agreed to pay $20 million to settle with the US over 467 “egregious” violations of Iran sanctions, the Treasury Department stated on Friday.
SCG Plastics Co. utilized US banks to handle $291 million in Iranian high-density polyethylene resin sales from 2017 to 2018, according to a settlement agreement executed by the company and the Treasury’s Office of Foreign Assets Control.
Thai Plastics Firm Will Pay $20 Million To Settle With U.S. Over Iran Sanctions Violations
The resin, which is used in product bottles and industrial products, was produced by an Iranian joint venture controlled in part by SCG Plastics’ parent business, SCG Chemicals, and the National Petrochemical business of Iran, a government body.
According to the settlement, SCG Plastics engaged in “shipping and documentation practices that obfuscated the product’s Iranian origin and Iranian parties’ involvement,” causing banks to unknowingly process transfers in violation of OFAC’s Iran sanctions.
“As a result of these transactions, significant economic benefits were conferred to Iran’s petrochemical sector, a major source of revenue generation for the Iranian regime,” the U.S. Treasury states. OFAC found that the 467 violations of Iran sanctions were “egregious” and penalized the corporation $20 million, which must be paid within 90 days.
While SCG Plastics is no longer in business, a documented agreement between OFAC and the company releases SGC Plastics from any obligation for sanctions violations.
Thai Plastics Firm Will Pay $20 Million To Settle With U.S. Over Iran Sanctions Violations
The fines come as US officials reveal intentions to impose additional sanctions on Iran following Tehran’s extraordinary attack on Israel, which could spark a wider Middle East conflict.
On Thursday, the United States and the United Kingdom placed fresh restrictions on Iranian individuals and organizations involved in drone production.
“We will continue to use our sanctions authority to counter Iran with additional actions in the coming days and weeks,” Treasury Secretary Janet Yellen stated.
Thai Plastics Firm Will Pay $20 Million To Settle With U.S. Over Iran Sanctions Violations
“We have also rigorously executed our sanctions, including imposing record fines and identifying sanction evasion schemes and networks. Our initiatives make it more difficult and costly for Iran to continue its destabilizing activities.”
SOURCE – AP
