Gen Re fined for violating Iran trade sanctions
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STAMFORD, Conn.—General Re Corp. has paid $59,130 to settle apparent violations of U.S. trade sanctions against Iran that occurred in July and August 2005, the U.S. Treasury Department said.
The Stamford, Conn.-based unit of Berkshire Hathaway Inc. had an agreement with Steamship Mutual Underwriting Assn. Ltd. to pay the London-based marine mutual's claims on excess coverage from June 16, 1998, to Feb. 20, 2002.
When Steamship Mutual experienced losses arising from vessel operations of Tehran, Iran-based shipping firm National Iranian Tanker Co., General Re paid two reinsurance claims under its contract with Steamship totaling nearly $310,000.
Voluntarily disclosed
Gen Re voluntarily disclosed the matter to the Treasury Department's Office of Foreign Assets Control, which enforces U.S. trade sanctions.
In announcing the fine Wednesday, Treasury said that “the transactions do not constitute an egregious case.”
Treasury said in the statement that the apparent violations resulted from activities of “certain claims personnel,” including a vp of claims on Gen Re's staff. The actions were contrary to Gen Re's sanctions compliance policies and procedures.
Since the incident, Gen Re has installed enhanced sanctions compliance software and implemented training programs for personnel who have a high probability of encountering sanctioned transactions. It also cooperated with OFAC by promptly responding to requests for information, among other steps, Treasury said in the statement.
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