Sanctions: OFAC statement on settlement with Banco Colpatria SA

(unedited)

Information concerning the civil penalties process is discussed in OFAC regulations
governing the various sanctions programs and in 31 CFR part 501. On November 9, 2009,
OFAC published as Appendix A to part 501 new Economic Sanctions Enforcement
Guidelines. Although these new guidelines replace earlier enforcement guidelines published
by OFAC, for certain matters that were in process at the time the new guidelines were
published, the prior guidelines (which can be found at 68 Fed. Reg. 4422 and 71 Fed. Reg.
1971) are still applicable. Please see OFAC’s Revised Interim Policy regarding use of the
prior guidelines. The Revised Interim Policy, along with the new guidelines and copies of
recent final Penalty Notices, can be found on OFAC’s website at http://www.treas.gov/offices/enforcement/ofac/civpen
ENTITIES – 31 CFR 501.805(d)(1)(i)

Banco Colpatria, S.A., on behalf of the former Banco Colpatria S.A., Miami Agency (closed)
Settles Narcotics Trafficking Sanctions Regulations Allegations: Banco Colpatria, S.A.,
(“Colpatria”) on behalf of the former Banco Colpatria, S.A., Miami Agency, which discontinued
its operations in 2007 (“Colpatria Miami”), has remitted $91,849 to settle allegations of
prohibited transactions involving blocked property under OFAC’s Narcotics Trafficking
Sanctions Regulations (“NTSR”) occurring between November 22, 2004 and May 24, 2005,
without admitting or denying liability. OFAC alleged that Colpatria Miami violated the NTSR by
processing 26 dollar-denominated wire transfers on behalf of one Colpatria corporate client, after
OFAC designated the corporate client’s beneficial owners as Special Designated Narcotics
Traffickers (“SDNTs”). Although Colpatria Miami screened the names of the beneficial owners
against the Specially Designated Nationals and Blocked Persons List (“SDN List”) at the time
that the account was opened, it did not screen the names as the SDN List was updated. After
discovering that the corporate client’s beneficial owners had been designated as SDNTs, Colpatria
Miami voluntarily self-disclosed this matter to OFAC. The base penalty amount for the alleged
violations was $229,623. The settlement amount reflects OFAC’s consideration of the following
General Factors: Colpatria Miami voluntarily self-reported this matter to OFAC; Colpatria
Miami has no history of any OFAC violations; Colpatria Miami revised its software configuration
to review automatically the names of authorized signatories and beneficial owners of accounts
rather than just the names of the account holders when performing account opening and periodic
name checks against OFAC’s SDN List; and Colpatria signed a tolling agreement with OFAC.