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Deutsche Bank America enters settlement with OFAC over Ukraine fuel oil transactions

On August 6, 2015, DBTCA processed a USD 28.85 million funds transfer through the United States involving Ukraine sanctioned IPP Oil Products (Cyprus) Limited.
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The United States Department of the Treasury (USDT) on Wednesday (9 September) said the Office of Foreign Assets Control (OFAC) has entered a total $583,100 settlement with Deutsche Bank Trust Company Americas (DBTCA).

The first settlement saw DBTCA agreeing to pay $157,500 for processing a large payment, related to a series of purchases of fuel oil, through the United States that involved a property interest of Ukraine sanctioned company IPP Oil Products (Cyprus) Limited (IPP).

On August 6, 2015, DBTCA processed a USD 28,849,038.39 funds transfer through the United States involving a property interest of IPP. 

Although the payment instructions associated with this transaction did not contain an explicit reference to a person (individual or entity) on OFAC’s SDN List or to a country or region subject to comprehensive sanctions, the payment was related to a series of purchases of fuel oil that involved IPP. 

According to USDT, DBTCA did not conduct further due diligence. It processed the transaction based on statements of IPP’s U.S. counsel based on its belief that IPP’s interest in the transaction had been extinguished, it added. 

Despite verbal assurances made to DBTCA from IPP’s U.S. counsel that IPP’s title to the fuel oil was transferred prior to IPP’s designation, OFAC said it has determined that IPP nonetheless had an interest in the transaction. 

“Financial institutions should take a risk-based approach to sanctions compliance,” explained USDT.

“In this instance, DBTCA was aware that it would be receiving a large funds transfer related to a series of transactions that at some point involved an SDN. 

“OFAC would have expected DBTCA take steps to corroborate independently the representations it received in order to assure itself that IPP did not have a present, future, or contingent interest in the payment it was requested to process, regardless of its time sensitivity.”

Separately, in the second settlement, DBTCA agreed to remit $425,600 for processing payments destined for accounts at a designated financial institution. 

Between December 22, 2015 and December 30, 2015, DBTCA processed 61 transactions totaling $276,742.90 destined for accounts with Krayinvestbank, a designated entity under Ukraine sanctions. 

Despite each payment containing Krayinvestbank’s Society for Worldwide Interbank Financial Telecommunication (SWIFT) Business Identifier Code (BIC) and an almost identical match to the bank’s name and address, all of which were included on the SDN List at the time of designation, DBTCA processed the majority of the payments on a straight-through basis without manual intervention, said USDT.

As part of its settlement with OFAC, DBTCA has agreed to maintain compliance procedures by ensuring its management team conducts risk assessments in a manner, and with a frequency, that adequately account for potential risks. 


Photo credit: Ken Chan
Published: 10 September, 2020

 

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Vessel Arrest

Malaysia: MMEA detains tanker transporting 62,000 litres of diesel off Port Klang

Vessel was operated by a 43-year-old Indonesia captain with a crew of six Indonesians; captain failed to present any documents permitting the transport of the diesel which is a controlled item.

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July 7, 2025

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Malaysia: MMEA detains tanker carrying 62,000 litres of diesel off Port Klang

The Malaysian Maritime Enforcement Agency (MMEA) on Friday (4 July) said it detained a tanker carrying 62,000 litres of diesel without valid documentation off Port Klang on 3 July. 

Selangor MMEA director Maritime Captain Abdul Muhaimin Muhammad Salleh said the tanker was detained at about one nautical mile west of Tanjung Harapan at 1.30pm during a routine patrol in Selangor waters. 

Initial checks showed the tanker was operated by a 43-year-old Indonesia captain with a crew of six, aged between 21 and 51, who were also Indonesians. All of them had complete identification documents. 

However, the captain failed to present any documents permitting the transport of the diesel cargo which is a controlled item. 

With that, a detention order was issued for the tanker. Both the captain and second engineer were arrested and were brought to the marine police jetty in Pulau Indah for further investigation. 

The case will be investigated under the Control of Supplies Act 1961 for failure to provide a permit or special licences from the Domestic Trade and Cost of Living Ministry to possess, store or transport controlled goods.  

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 7 July, 2025

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Winding up

Singapore: Tiger LNG Shipping Pte Ltd to be wound up voluntarily

A liquidator was also appointed for the company at an extraordinary general meeting held on 30 June, according to Government Gazette notice.
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July 7, 2025

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RESIZED Drew Beamer

Several resolutions for Tiger LNG Shipping Pte Ltd were made during an extraordinary general meeting held on 30 June, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

AS SPECIAL RESOLUTIONS

Resolved:

  • That the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018, and that Mr Lum Chi Lup Benny of 190 Middle Road, #17-05 Fortune Centre, Singapore 188979, be and is hereby appointed as Liquidator for the purpose of such winding-up;
  • That the Liquidator be and is hereby authorised (when and as soon as the debts and liabilities of the Company have been paid and satisfied or duly provided for) to distribute the assets in specie or kind among the contributories of the Company in accordance with their respective rights and interests; and
  • That the Liquidator of the Company be and is hereby authorised to exercise any of the powers given by Sections 144(1)(b), (c), (d), (e), (f) and (g) of the Insolvency, Restructuring and Dissolution Act 2018.

AS ORDINARY RESOLUTIONS

Resolved:

  • That the Liquidator, Mr Lum Chi Lup Benny be remunerated for the work of winding-up the Company on his normal scale of fees and that the Liquidator be indemnified by the Company against all costs, charges, losses, expenses and liabilities incurred or sustained by him in the execution and discharge of his duties in relation thereto.
  • That pursuant to Section 195(2) of the Insolvency, Restructuring and Dissolution Act 2018, the books, accounts and documents of the Company and those of the Liquidator shall be retained for a period of 5 years after the dissolution of the Company and, at the expiration of that period, the documents may be destroyed.

 

Photo credit: Drew Beamer
Published: 7 July, 2025

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Winding up

Singapore: Liquidators issue notice of intended dividend for Xihe Holdings

Creditors will need to produce proofs of debt to liquidators of collapsed Singapore-based oil trading firm Xihe Holdings by 17 July, according to Government Gazette notice.
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July 4, 2025

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A notice to declare intended dividend of collapsed Singapore-based oil trading firm Xihe Holdings Pte Ltd to its creditors has been posted on the Government Gazette on Thursday (3 July).

Xihe Holdings Pte Ltd and its subsidiaries are owned by the Lim family, who are also the owners of the embattled Hin Leong Trading.

The following are the details of the notice of intended dividend:

Name of Company : Xihe Holdings (Pte) Ltd (In Liquidation)
Unique Entity No. / Registration No. : 199002021M
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Court : High Court of Singapore
Number of Matter : HC/CWU 40/2022
Last Day for Receiving Proofs : 17 July 2025 at 5:00 pm by email to [email protected]
Name of Liquidators : Seshadri Rajagopalan, Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Related: Singapore: Xihe Holdings and subsidiaries to be placed under judicial management
Related: Xihe Holdings files for judicial management and winding up of Xihe Capital subsidiaries

 

Photo credit: steve pb from Pixabay
Published: 4 July, 2025

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