Atradius Trade Credit Insurance Inc. agreed to pay $345,315 to settle allegations that it violated U.S. sanctions.
In October 2016, a U.S.-based cosmetics company allegedly assigned the Atradius NV subsidiary to collect a $5.7 million debt from Grupo Wisa SA, which was blacklisted by the Office of Foreign Assets Control, or OFAC, earlier that year. Atradius Trade Credit Insurance then filed a claim in Panama as a creditor in the liquidation of Grupo Wisa, receiving a payment of about $4.0 million as a result.
By accepting the assignment and receiving the payment, Atradius Trade Credit Insurance "appears to have dealt in property or interests in property of a specially designated narcotics trafficker," according to the government agency. Atradius Trade Credit Insurance did not voluntarily disclose the violations, which constitute a nonegregious case.
Atradius Trade Credit Insurance voluntarily conducted a review of the issue and took voluntary remedial action to address the cause of the violations. The company also agreed to ensure that its OFAC sanctions compliance program remains strong over the next several years.