The high end jewellery chain, Cartier, was fined US$384,000 for violating US sanctions on four occasions for selling expensive jewellery to Shuen Wai Holding Limited, a Hong Kong company.
But surprisingly, the purchases took place in California and Nevada. Shuen Wai Holding Limited is on the OFAC List of Specially Designated Nationals and Blocked Persons and American persons and entities are prohibited from dealing with OFAC listed persons. The US Treasury noted, in assessing the fine, that Cartier’s failed to undertake the most basic due diligence of running client names through OFAC’s free database.
The Hong Kong company is listed under the Foreign Narcotics Kingpin Designation Act, which includes many of the worst drug organizations and facilitators in the world.
OFAC noted that the enforcement highlights the risks for retailers that engage in international transactions and sell to customers or ship products to persons and entities on the sanctions list.