Jeremy Paner Discusses Adani Enterprises’ OFAC Settlement with Global Investigations Review

Jeremy Paner discussed the $275 million settlement between Indian billionaire Gautam Adani’s flagship company and the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) with Global Investigations Review. The settlement resolves allegations that Adani Enterprises caused U.S. banks to process payments in violation of U.S. sanctions on Iran.

OFAC announced the settlement with Adani Enterprises on May 18, as the U.S. Department of Justice moved to drop a foreign bribery case against Adani, his nephew and several other executives. Four days earlier, the U.S. Securities and Exchange Commission announced a related $16 million settlement with Adani and his nephew over allegations they misled investors about compliance with anti-corruption laws.

Paner said that it’s “unusual for OFAC to reach a settlement within a year of the probable beginning of its investigation.”

“Because the OFAC action so closely follows in time the DOJ and SEC resolutions, it seems that the US government is seeking to wipe the slate clean,” he said.

Paner said that the geography of the settlement stands out, as “Indian companies have never been a significant target of OFAC enforcement.”

“Because of the relative lack of enforcement, many Indian companies and banks do not fully appreciate the scope of OFAC jurisdiction. I expect that to change overnight with this action,” he said.

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