US fines Dutch company for dealing with Cuba

US fines Dutch company for dealing with Cuba
Published on Friday, July 10, 2009

HAVANA, Cuba (ACN) -- Dutch giant Phillips has been fined $128,750 by
the US Office of Foreign Assets Control (OFAC) for selling medical
equipment to Cuba.

The OFAC fined Philips Electronics of North America Corporation (PENAC),
a subsidiary of the Dutch company, because "one PENAC employee travelled
to Cuba without a license in relation with a sale of medical equipment,
done by a PENAC foreign subsidiary", Cubadebate website reported.

Despite being a Dutch company having subsidiaries in over 60 countries,
including Brazil, where the equipment was produced, Phillips was forced
to pay the fine, because of the regulations imposed by 1996 Helms-Burton
Law.

This is the case of Phillips, which some 20% of its assets are owned by
American capital, an official with the Cuban Chamber of Commerce told
ACN news agency.

The New York-based Philips Electronics of North America Corporation
(PENAC), agreed to pay the fine imposed by the US Treasury for the
infraction committed between June 2004 and March 2006.

The Cuban Assets Control Regulations were issued by the US government on
July 8th 1963, as part of the Blockade imposed on Cuba, and they affect
all US citizens and permanent residents wherever they are located, all
people and organizations physically in the United States and all
branches and subsidiaries of US organizations throughout the world, as
published on the OFAC Website.

In 1996 the US Congress and Senate passed, the Cuban Act, which was
signed by then- president Bill Clinton. The legislation made the scope
of sanctions extraterritorial, thus affecting all US companies in the
world, or foreign companies with over 10 percent of US assets.

The extraterritorial Helms Burton Law and other measures with the US
economic, commercial and financial blockade of Cuba have been aimed at
isolating and toppling revolutionary government on the island.

Those who evade the US's anti-Cuba measures may face sanctions ranging
up to 10 years in prison, $1,000,000 in corporate fines, and $250,000 in
individual fines. Civil penalties can go up to $55,000 per every violation.

In 2008, fines related to the nearly 50-year US economic blockade
against Cuba reached to $2.06 million , the largest figure since
President George W. Bush reinforced restrictions on Cuban Americans to
travel to Cuba, spend money or send remittances to their relatives in Cuba.

In a limited move, US President Barack Obama lifted in 2009 the
restrictions imposed by former President Bush on Cuban Americans, though
travel restrictions for all American citizens are still in force.

Caribbean Net News: US fines Dutch company for dealing with Cuba (10
July 2009)
http://www.caribbeannetnews.com/article.php?news_id=17594