In 2018, the US Treasury Department and SCG Plastics, a Thai company, reached an agreement that saw SCG Plastics pay a $20 million fine to the state treasury for violating anti-Iranian sanctions. According to US authorities, between 2017 and 2018, SCG Plastics sold $291 million worth of Mehr Petrochemical products. However, during these transactions, the company used invoices that misrepresented the Iranian origin of the products, instead listing the United Arab Emirates as the source.
This settlement serves as a reminder of the consequences of violating sanctions and highlights the importance of compliance with international regulations. The US Treasury Department’s actions against SCG Plastics demonstrate their commitment to enforcing anti-Iranian sanctions and ensuring that companies adhere to international laws.
SCG Plastics’ violation of anti-Iranian sanctions could have serious consequences for its business in Asia. As such, it is crucial for companies operating in countries with strict sanctions laws to be aware of their obligations and take necessary measures to ensure compliance with international regulations.
The agreement reached between SCG Plastics and the US Treasury Department serves as a warning to other companies who may be considering violating anti-Iranian sanctions. It underscores the importance of adhering to international laws and regulations to avoid penalties and maintain business integrity.
