ESCO, a maker of metal parts for the mining, oil and gas, construction and other industries, today reached a $2 million settlement with the Treasury Department’s Office of Foreign Assets Control for violations of the Cuban Assets Control Regulations.  

According to OFAC, ESCO appeared to have violated Cuban Assets Control Regulations when its subsidiary purchased nickel briquettes made or derived from Cuban-origin nickel between 2007 and 2011. “ESCO acted with reckless disregard for the Cuba sanctions program by failing to identify, despite the presence of contemporaneous ‘red flags’ in the public domain, that the nickel briquettes were made or derived from Cuban-origin nickel,” OFAC stated.

Furthermore, ESCO “caused significant harm to the Cuba sanctions program and its policy objectives by conducting large-volume and high-value transactions in products made or derived from Cuban-origin nickel, which were ultimately sourced from Specially Designated Nationals,” OFAC stated.

OFAC did, however, take into consideration that ESCO had not received a penalty notice or finding of violation from OFAC in the five years preceding the date of the first transaction giving rise to the apparent violations. Additionally, ESCO enhanced its OFAC compliance plan and cooperated with the investigation.

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