Subsidiary of Bulk Carrier Settles Allegations of Sanctions Violations
January 27 2020 - 6:37PM
Dow Jones News
By Mengqi Sun
The operating arm of a Nasdaq-listed bulk carrier has agreed to
settle allegations that it violated U.S. sanctions on Myanmar, the
U.S. Treasury Department said Monday.
Eagle Shipping International (USA) LLC, a subsidiary of Eagle
Bulk Shipping Inc., a bulk carrier of commodities, will pay about
$1.13 million to settle allegations that it provided transportation
services from Myanmar to Singapore between 2011 and 2014 for
Myawaddy Trading Ltd., a Myanmar-based company that was blacklisted
by the U.S. at the time, according to the Treasury's Office of
Foreign Assets Control, which enforces U.S. sanctions.
The U.S. lifted sanctions on Myanmar and removed Myawaddy from
its blacklist in October 2016. But individuals or entities can
still be found to have violated the sanctions if the alleged
misconduct happened before the sanctions were lifted, the Treasury
says.
"We are pleased to have successfully resolved this matter and
that the company can put this legacy issue behind it," Gary Vogel,
chief executive officer of Eagle Bulk Shipping, said in an email.
"Eagle Bulk is committed to observing all regulations -- those set
forth by OFAC and otherwise -- as well as upholding the highest
compliance and corporate governance standards."
Eagle Bulk Shipping, which has its headquarters in Stamford,
Conn., went through a chapter 11 bankruptcy in 2014 and reorganized
with a new senior management team, according to the company. OFAC
said the new management team disclosed the potential violations to
the agency after a review of the company's past compliance with
U.S. sanctions.
OFAC said the company continued to transport sand supplied by
Myawaddy, which was under U.S. sanctions at the time, from Myanmar
to Singapore despite a denial of its license application and a lack
of authorization from OFAC to engage in such activities.
Write to Mengqi Sun at mengqi.sun@wsj.com
(END) Dow Jones Newswires
January 27, 2020 18:22 ET (23:22 GMT)
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