OFAC has fined Alcon Laboratories, Alcon Pharmaceuticals, and Alcon Management (Alcon) $7,617,150 for violating US sanctions on Iran and Sudan. Alcon, a multinational medical company, is said to have violated the Iran sanctions on 452 occasions and the Sudan sanctions on 61 occasions when it sold and exported surgical and pharmaceutical products from the US to distributors in those countries without authorisation from OFAC.
OFAC found that Alcon did not voluntarily self-disclose its violations, but that the violations were non-egregious. The base penalty amount for the violations was $16,927,000, and the maximum was $138,982,584.
Among other factors, OFAC found Alcon’s conduct to have been aggravated by the fact that it had essentially no sanctions compliance programme in place at the time of the violations, despite doing substantial business involving sanctioned countries. In mitigation, OFAC noted that the harm to US sanctions programs caused by the violations was limited because the exports involved licensable medical end-use products, for which Alcon had previously been, and was subsequently, given a licence. OFAC made a similar finding in mitigation in relation to its fine against medical technology company HyperBranch last month (see previous blog).
OFAC’s enforcement notice is here.