OFAC Fines Nasdaq for Iranian Sanctions Compliance Violations

OFAC fined Nasdaq, Inc. for failing to ensure that its foreign subsidiary complied with the Iranian Transactions and Sanctions Regulations ("ITSR").

According to the enforcement release, Nasdaq's wholly owned foreign subsidiary Nasdaq OMX Armenia facilitated financial transactions that were subject to the ITSR. OFAC explained that the Nasdaq subsidiary was not a party to the transactions with the sanctioned entity; however, it provided the trading platform on which the sanctioned entity participated.

OFAC found that (i) Nasdaq had a global policy under which none of its worldwide subsidiaries were to provide services to sanctioned entities; (ii) relevant Nasdaq employees failed to apply Nasdaq's policy correctly; and (iii) Nasdaq discovered the issue and disclosed the company's apparent violation. OFAC concluded that Nasdaq OMX "engaged in the exportation of services to Iran and the Government of Iran, thereby committing 151 apparent violations of OFAC sanctions on Iran." OFAC noted that Nasdaq OMX's participation in the improper transactions earned approximately $16,000 in fees.

To settle the matter, OFAC ordered Nasdaq to pay a fine of $4,040,923. OFAC stated that the settlement amount reflected that the apparent violations were non-egregious and voluntarily self-disclosed. Further, OFAC underscored the importance for U.S. companies to apply their sanctions policy globally and referred companies to relevant OFAC guidance.