U.S. Fines Multinational Company for Breaching Cuba Sanctions

The Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury has levied a penalty of $257,690 against logistics and transportation firm C.H. Robinson International (CHR) for violating economic sanctions imposed on Cuba and Iran. As reported by the digital publication Café Fuerte, citing the official statement, the breaches involved five subsidiaries based in China, Spain, Australia, Canada, and Peru, occurring between 2017 and 2022.

The apparent violations encompassed 82 transactions related to the transportation of goods originating from Cuba and Iran, as well as service agreements with an airline from the latter, contravening international sanctions enforced by the U.S. government against these authoritarian regimes.

Examining the Details of the Violations

In the case of Cuba, the infractions were traced back to the Canadian subsidiary of CHR, C.H. Robinson Canada Ltd., which facilitated the transport of Cuban-origin products in at least six transactions. Altogether, the subsidiary managed 71 shipments of Cuban and Iranian goods, valued at approximately $448,731.

OFAC pointed out that many of these violations occurred because the subsidiaries had not updated their internal systems to align with CHR's sanction controls. This oversight allowed some transactions to go unnoticed, leading to these apparent infractions.

Mitigated Penalty, Yet Not Without Consequences

Although the initial fine calculated by OFAC reached $28.6 million, the authorities significantly reduced the amount to $257,690 after considering several mitigating factors. Among these were CHR's voluntary disclosure of the violations to OFAC and their full cooperation with the investigation, as well as the absence of prior penalties for similar violations in the past five years.

Additionally, the company took immediate steps to rectify the issues, such as implementing a manual retention plan in their operations and establishing a task force to oversee international transactions.

Impact on U.S.-Cuba Relations

The fine imposed on CHR comes at a time of heightened political tension between Washington and Havana. The communist regime has condemned OFAC's restrictive measures as part of a strategy of "economic and financial siege" that directly impacts the island.

In response to the recent sanctions and the potential return of Donald Trump to the White House in January 2025, Cuban leader Miguel Díaz-Canel has called for "vigilance and unity" against what he perceives as a hostile U.S. policy. During a speech in Havana, Díaz-Canel urged popular mobilizations to denounce the embargo and underscored the need to "resist firmly," as highlighted by Café Fuerte in its journalistic coverage.

He also emphasized advancing "development programs" through "innovation and work."

U.S. Maintains Cuba on Terrorism Sponsor List

Recently, the U.S. government confirmed that Cuba will remain on the list of state sponsors of terrorism, as outlined in the latest 2023 terrorism report from the Department of State. The decision is based on an assessment that the Cuban government continues to provide safe haven to terrorists and fugitives from justice, as well as maintaining ties with guerrilla groups.

A Reminder for Global Enterprises

The CHR case underscores the stringent control policies that the United States maintains over its economic sanctions. For international companies, these measures send a clear message: any transaction breaching restrictions imposed on sanctioned countries like Cuba and Iran can result in severe penalties, even if operations are conducted through foreign subsidiaries.

Founded in 1905 and with revenues of $17.6 billion in 2023, C.H. Robinson International ranks among the leading multimodal transportation companies globally. Nevertheless, this incident highlights the critical importance of maintaining rigorous compliance systems, especially in sensitive markets under sanctions.