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US Manufacturer Says It May Have Violated Iran Sanctions

A U.S. manufacturing company disclosed it may have violated U.S. sanctions on Iran, in a filing with the Securities and Exchange Commission. The company, H.B. Fuller, said it voluntarily disclosed the possible violations to the Treasury Department in September 2018 after discovering its subsidiaries in Turkey and India may have sold its products to customers who then resold them to Iran. The possible violations began in Turkey in 2011 and in India in 2014, the company’s Sept. 27 filing said, and involved the resale of “hygiene products.”

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The sales made up less than 1 percent of H.B. Fuller’s “net revenue in each of our last three fiscal years,” the company said, adding that the sales stopped in 2018 and it does “not currently conduct any business in Iran.” The company said it conducted its own internal investigation before notifying Treasury’s Office of Foreign Assets Control and plans to “cooperate fully” with OFAC. The company said it has not received a response from OFAC, but based on its investigation, H.B. Fuller believes it will receive a penalty ranging from zero to $10 million.