3M Faces Penalty for Iran Dealings: In recent news, 3M, a well-known company making Post-It notes, Scotch Tape, and N95 masks, is in trouble. They must pay nearly $10 million for an Iran-related violation. OFAC shared this news recently.
OFAC found 3M violated rules 54 times while dealing with Iran. These violations occurred from 2016 to 2018. 3M in Switzerland sold reflective license plate material to Bonyad Taavon Naja in Iran through a German company. And guess what? Iranian law enforcement is in control of this Bonyad Taavon Naja.
This isn’t the first time 3M has paid a lot of money this year due to problems.
So far, 3M hasn’t addressed the penalty yet.
OFAC states that an employee of 3M Gulf in Dubai played a significant role in the sale. This makes us wonder how much 3M knew.
Even after an outside company confirmed connections to Iran’s Law Enforcement Forces, the sales continued. Iran’s law enforcement has faced accusations of wrongdoing in Iran and Syria.
OFAC states that 3M’s Swiss branch, known as 3M East, sent 43 shipments to Germany, aware that the products would reach the Iranian group.
Also Read: 3M Settles US Military Earplugs Lawsuits with $6 Billion Payout
OFAC is not holding back. Some big bosses at 3M Gulf broke rules, and other employees were careless with sales. OFAC believes these employees should’ve known they were violating U.S. rules, but they ignored the signs.
What’s interesting is that 3M informed OFAC about the rule violations when they discovered their sale was not permitted. After that, 3M took steps to address the issue. They addressed employee misconduct, hired legal experts, updated employee training, and ended business with the German company.
But wait, there’s even more! 3M paid a lot of money this year for various reasons.
In June, they agreed to pay $10 billion for 13 years to aid US water suppliers. Why shorten the text by 0.5%? Suppliers found “forever chemicals” in the drinking water. This was a big deal, and 3M wanted to help. Just FYI, 3M has faced numerous lawsuits for two decades due to products containing harmful chemicals.
3M says the payment doesn’t imply wrongdoing. They’re trying to help.
A few months later, in August, 3M paid an additional $6 billion. This time, it was to handle around 300,000 lawsuits. Lawsuits claim 3M provided faulty earplugs to the military, resulting in hearing issues.
To summarize, 3M is facing trouble for violating business rules with Iran and must pay a hefty fine. But it’s not their first big payment this year. They’ve also assisted with water issues and lawsuits related to their products. It’s too much for one company to handle!
Our Reader’s Queries
How much did OFAC fine 3M over Iran sanctions violations?
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently announced a settlement agreement with 3M Company, a Minnesota-based global manufacturing company. The agreement, which amounts to $9,618,477, is in relation to 54 apparent violations of OFAC’s Iran sanctions regulations.
What sanctions are imposed on Iran by us?
The CAATSA law mandates that the President must enforce sanctions on three specific areas related to Iran. These include Iran’s programs for ballistic missiles or weapons of mass destruction, the sale or transfer of military equipment to Iran, and the provision of technical or financial assistance related to such sales. Additionally, the law targets Iran’s Islamic Revolutionary Guard Corps and any affiliated foreign entities.
Which countries are on the sanctions list?
Stay informed about the latest sanctions programs and country information with our up-to-date list. Our active sanctions programs include Iran, Iraq, Lebanon, Libya, and many more. We keep our information current, with the last update made on Dec 19, 2023 for Iran sanctions. Our concise list makes it easy to stay informed without getting bogged down in unnecessary details. Trust us to provide you with the most accurate and relevant information available.
Is Afghanistan on the sanctions list?
Unlike the sanctions imposed by OFAC on North Korea, Cuba, Iran, Syria, Crimea, Donetsk People’s Republic, and Luhansk People’s Republic regions of Ukraine, Afghanistan does not have any comprehensive sanctions in place.