A Bangkok-based plastics firm sanctioned by the US Treasury has agreed to pay $20 million to settle with the US.
SCG Plastics Co. used US banks in the sale of $291 million worth of high-density polyethylene resin from Iran between 2017 and 2018, according to a settlement agreement signed between the Treasury’s Office of Foreign Assets Control, a statement said on Friday.
The resin, used for product bottles and industrial products, was produced by an Iranian joint venture partially owned by SCG Plastics’ parent company SCG Chemicals and the National Petrochemical Company of Iran, a state-owned enterprise.
The settlement states that SCG Plastics used shipping and documentation practices that concealed the Iranian origin of the product and the involvement of Iranian parties, which caused banks to unknowingly process transfers in violation of OFAC sanctions against Iran.
OFAC found 467 violations of Iran sanctions to be egregious and fined the company $20 million, to be paid within 90 days.
Although SCG Plastics is no longer in business, an agreement between OFAC and the company exempts SGC Plastics from any liability for sanctions violations.
The EU announced the expected decision: Iran’s Censoring Tech Firm Removed from Sanctions List
