OFAC settles with Stanley Black & Decker and Jiangsu Guoqiang Tools for Iran sanctions violation
On 27 March 2019 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $1,869,144 settlement with Stanley Black & Decker, Inc. and its foreign subsidiary Jiangsu Guoqiang Tools Co., Ltd. (GQ). Between approximately 29 June 2013 and approximately 30 December 2014 GQ exported or attempted to export 23 shipments of power tools or spare parts directly or indirectly to Iran. These transactions appear to violate § 560.215 of the Iranian Transactions and Sanctions Regulations (ITSR).
Stanley Black & Decker, Inc. is a Connecticut-based company that makes hand, power and other tools. In 2011 it began acquisition negotiations with GQ, which is located in China. Despite providing a training series to GQ employees regarding the companies policies and procedures as they relate to OFAC, after the acquisition Stanley Black & Decker failed to implement procedures to monitor GQ’s operations or verify their compliance with OFAC's sanctions programs. OFAC has determined that the apparent violations by Stanley Black & Decker and GQ constitute an egregious case.
For more information please read the web notice published by OFAC.