Maersk fined US$3.09 million for evading US Iran sanctions

DENMARK`s AP Moller-Maersk`s US-flagged subsidiary Maersk Line Ltd must pay a US$3.09 million fine for violating US sanctions against shipping to Iran and Sudan, reported the American Shipper.

"We recognise our obligation to follow US trade sanctions, and we regret the violations," a statement from the Maersk said.


The fine was only five per cent of the base fine of $61.77 million, but as it was deemed an "non-egregious case", thus "enforcement response is proportionate, particularly in light of the fact that the base penalty amount is based on gross freight charges for shipping the cargo from origination to destination and the apparent violations involved only a portion of those voyages," said the Office of Foreign Assets Control (OFAC).


Maersk`s alleged fault was that its owned, operated and/or leased vessels, time-chartered or sub-time-chartered by its parent company the APMM were involved in 4,714 cargo shipments at least on one leg, either to or out of Sudan and Iran between January 2003 and October 2007.


The offence occurred when cargo transited in or out of Iranian and Sudanese ports by foreign-flag services that Maersk operates, found its way for a part of its voyage on the carrier`s ships, the report said.


For example, Maersk vessels could have picked up boxes destined to or from Iran and Sudan at European and Asian ports where its ships call due to the booking systems.


While Maersk`s alleged action benefited Iran and Sudan, points in its favour when the penalty was contemplated was- its credentials as a member of the global shipping network and its operations under licence given by OFAC and other US federal agencies; no violation of OFAC sanctions in the last half decade; its substantial and full cooperation during investigations; steps by APMM to counter potential of violations in the future; providing "well-organised" documents pertaining to its handling of the said cargo and assent to statute of limitations tolling agreements as requested.