The U.S. Treasury Department fined CGG Services, formerly known as CGGVeritas, $614,000 on Tuesday for allegedly violating bans on exporting goods to Cuba.
According to the Treasury Department, CGGVeritas and its affiliates appear to have violated bans on exporting goods under the Cuban Assets Control Regulations from 2010 to 2011.
The alleged first violation occurred in December 2010, when CGGVeritas and CGG U.S exported spare parts and other equipment from the United States to the M/V Amadeus while the vessel operated in Cuba’s territorial waters.
The Treasury Department also claims that the two firms appear to have violated the export ban in March 2011 when they exported goods from the United States to the M/V Veritas Vantage while it operated in Cuban waters.
CGGVeritas was also accused of violating the export ban on 13 occasions when it exported goods of U.S. origin from unaffiliated companies to the M/V Veritas Vantage from February 2011 to July 2011 and two other occasions in early February 2011 when it exported U.S. origin goods to the M/V Princess while the vessel operated in Cuban waters.
The department also alleged that Veritas Geoservices, a Venezuelan subsidiary of CGG U.S., appears to have violated the regulations when it “engaged in five transactions at the request of CGGVeritas France” to process data from seismic surveys conducted in Cuba’s Exclusive Economic Zone benefiting an unnamed Cuban company.
The Office of Foreign Assets Control (OFAC) determined that CGGVeritas “did not voluntarily self-disclose the alleged violations to OFAC, and that the alleged violations constitute a non-egregious case.”
The underlying transactions were worth $2,758,701, the OFAC said.
The OFAC found that CGGVeritas “acted with reckless disregard for U.S. sanctions requirements by exporting U.S.-origin goods to Cuban waters” and was aware of “of the conduct giving rise to the alleged violations.”
The agency also found that CGGVeritas “took some steps to avoid OFAC violations as part of its compliance program,” including removing U.S. personnel and equipment for M/V Vantage prior to it entering Cuba’s territorial waters.
The agency added that CGGVeritas has “adjusted its supply procedures to minimize the risk of future sanctions violations.”
CGG Services agreed to pay $614,250 on its own behalf and on behalf of its affiliated companies to settle potential civil liability for the alleged violations of the Cuban Assets Control Regulations.