The Treasury Department announced Wednesday that Stanley Black & Decker agreed to settle allegations of violating U.S. sanctions against Iran. Photo: brian snyder/Reuters
Stanley Black & Decker Inc. and Chinese subsidiary Jiangsu Guoqiang Tools Co. agreed to pay roughly $1.9 million to settle allegations they violated U.S. sanctions against Iran, the Treasury Department said Wednesday.
The settlement between Stanley and the Treasury Department’s Office of Foreign Assets Control is the fifth enforcement action by the agency this year. The announcement comes a day after the U.S. blacklisted more than two dozen individuals and entities for helping Iran exchange currency to finance Iranian military operations.
Jiangsu Guoqiang Tools, also known as GQ, exported or attempted to export 23 shipments of power tools and spare parts with a total value of more than $3.2 million directly and indirectly to Iran between June 2013 and December 2014, according to an OFAC statement.
New Britain, Conn.-based Stanley disclosed the alleged violations to OFAC in 2015 and responded to the regulator’s requests for information in 2017 and 2018, according to the Treasury.
As part of the civil settlement, Stanley also agreed to enhance its sanctions compliance program and internal controls, and OFAC agreed to discharge Stanley and Jiangsu Guoqiang Tools from the alleged violations.
“We have taken and will continue to take steps to ensure all employees are compliant with corporate policies and applicable laws,” said Abigail Dreher, a Stanley spokeswoman.
Stanley discovered GQ’s exports to Iran in 2011, when the tool maker was conducting due diligence during negotiations to buy GQ, according to the Treasury. Stanley required that the transactions with Iran stop as a condition of completing the acquisition.
After the deal closed, however, Stanley Black & Decker learned that the subsidiary had continued exporting to Iran despite sanctions-compliance training provided by the U.S. tool maker, and that GQ board members and senior management knew about it, according to the settlement agreement.
An internal investigation by Stanley found that GQ employees sought to conceal exports to Iran using six trading companies and creating fake bills of lading with incorrect ports of discharge and places of delivery, according to the settlement agreement.
Write to Mengqi Sun at [email protected]