OFAC settles with NASDAQ for Iran sanctions violations by former subsidiary
The US Treasury Department’s Office of Foreign Assets Control (‘OFAC’) has announced a $4m settlement with Nasdaq, Inc., relating to ‘Apparent Violations of the Iranian Transactions and Sanctions Regulations’ undertaken by a company, Nasdaq OMX Armenia OJSC (Nasdaq OMX Armenia) which, it says, was a former subsidiary of Nasdaq and a former owner and operator of the Armenian Stock Exchange (‘ASE’).
OFAC said Nasdaq OMX Armenia ‘processed trades and settled payments through the ASE platform involving the OFAC-designated Armenian subsidiary of Iran’s state-owned Bank Mellat. In doing so, Nasdaq OMX Armenia knowingly engaged in the exportation of services to Iran and the Government of Iran, thereby committing 151 apparent violations of OFAC sanctions on Iran.’
OFAC said that there were three aggravating factors in the case:
‘(1) Nasdaq and Nasdaq OMX Armenia failed to exercise due caution or care with regard to the conduct that led to the Apparent Violations by engaging in conduct that allowed Mellat Armenia to avail itself of financial services notwithstanding applicable sanctions and Nasdaq corporate policy;
(2) Nasdaq and Nasdaq OMX Armenia had actual knowledge that Mellat Armenia was trading on the ASE throughout the relevant period, but the company did not take steps to put appropriate sanctions compliance-related controls into place after Nasdaq OMX Armenia became subject to the ITSR in 2012;’ and
‘(3) Nasdaq OMX Armenia was owned and operated by Nasdaq, a large, commercially sophisticated, international financial services corporation.’
