Red Bull pays $90,000 for OFAC Cuba travel sanction violations
Civil Liability for Alleged Violations of the Cuban Assets Control Regulations, 31 C.F.R. Part 515: Red Bull North America, Inc.
(“RBNA”) has agreed to pay $89,775 to settle potential civil liability for seven alleged violations of the Cuban Assets Control Regulations, 31. C.F.R. part 515 (the
“CACR”). Between June 8 and June 18, 2009, seven representatives of RBN A traveled to Cuba in order to film a documentary, without authorization from OFAC.
The production of the film, as well as the associated travel, was approved by RBNA management.
OFAC determined that RBNA did not voluntarily self -disclose the alleged violations and that the alleged violations constituted a non-egregious case. The maximum penalty amount for the alleged violations was $455,000, and the base penalty amount was $105,000.
The settlement reflects OFAC’s consideration of the following facts and circumstances, pursuant to the General Factors under OFAC’s Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A: RBNA had prior knowledge of U.S. sanctions on Cuba and took steps to conceal the transactions; RBNA is a U.S. subsidiary of a sophisticated multinational company with extensive experience in international trade; RBNA made a remedial response by instituting an OFAC compliance program; and RBNA has not received a penalty notice or Finding of Violation from OFAC in the five years preceding the date of the unauthorized travel to Cuba.