John Bean Technologies Corporation (JBT) has settled charges that it violated US economic sanctions imposed on Iran when it presented a letter of credit (L/C) naming a sanctioned entity, Islamic Republic of Iran Shipping Lines (IRISL).

The Chicago based company has agreed to pay US$391,950 to settle potential civil liability for alleged sanctions violations.

Blocked vessel

JBT appears to have violated sanctions when it sold goods to a Chinese company that were shipped by IRISL aboard a blocked vessel from Spain to China.

Trade documents related to the shipment were presented to a US bank for payment pursuant to an L/C for around US$2.9 million.

L/C declined

JBT appears to have violated sanctions when it presented trade documents related to the IRISL shipment to Banco Santander in the amount of around US$2.9 million in order to receive payment for the goods sold to China Southern Airlines.

After a US bank declined to advise the L/C and the trade documents had been returned to JBT, the Chicago based company failed to voluntarily self-disclose the apparent violations and arranged for IRISL to be paid.

OFAC considered that JBT’s management knew about the sanctions violation and that by arranging payment in favour of IRISL, the US firm conferred economic benefit on a blocked entity, resulting in harm to the US sanctions programme’s objectives.