OFAC has issued a Finding of Violation to AXA Equitable Life Insurance Company (AXA), for apparent violations of US anti-narcotics sanctions (OFAC’s enforcement notice is here). In 1992, AXA issued two health insurance policies that together provided coverage for Leopoldo Grayeb, Noemi Fernandez, and Juan Manual Fernandez, all of whom were added to the SDN List in December 2009. Subsequently, neither AXA nor the US insurance company serving as the Third Party Administrator (TPA) for the policies screened the names of the TPA’s policyholders against the SDN List, resulting in a failure to block the policies and premium payments in which the 3 designated people had an interest.
It was not until another TPA assumed responsibility for the policies in June 2011 that the policyholders were identified as being on the SDN List, by which time $14,406.19 of payments connected to the SDNs had been facilitated or processed by AXA.
Among other factors, OFAC found AXA’s conduct to have been aggravated by the fact it is a large and commercially sophisticated financial institution, without an adequate compliance programme, but mitigated by the fact that no AXA personnel, including managers or supervisors, appeared to have had actual knowledge of the conduct that led to the violations.