Toll Group Working to Prevent Future Violations Following OFAC Settlement, Official Says
Toll Group Holdings, the Australian international logistics company fined earlier this week for sanctions violations, takes "compliance seriously” and has “acted to keep this from happening again," managing director Thomas Knudsen said in an April 25 email. The company's $6.13 million settlement with the Office of Foreign Assets Control covered liability for nearly 3,000 violations of several U.S. sanctions programs, including illegal payments connected to sea, air and rail shipments through multiple highly sanctioned countries, including North Korea, Iran and Syria (see 2204250015).
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Knudsen said the violations occurred because of a "misunderstanding about regulations regarding payments through the U.S. financial system related to otherwise permissible shipments." Knudsen was responding to an Export Compliance Daily request for comment on the action. OFAC determined the issues arose from Toll's failure to update its compliance program as the company's operations expanded in scope and complexity.
The company has instituted "rigorous control systems and enhanced training and accountability," Knudsen added. OFAC cited Toll's "extensive actions" to fix compliance gaps as a mitigating factor in the settlement amount.