On August 12, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced that Rice Lake Weighing Systems (“Rice Lake”), a Wisconsin-based manufacturer and distributor of scales and weight-related products, agreed to pay $60,764 to settle potential civil liability for eight apparent violations of U.S. sanctions on Iran. The settlement involved Rice Lake and its Italian subsidiary, Dini Argeo S.r.l. (“Dini”), which Rice Lake acquired in November 2016. OFAC indicated that the amount of the settlement reflects its determination that the apparent violations were non-egregious in nature and voluntarily self-disclosed by Rice Lake.
According to the Enforcement Release, the violations arose after the United States withdrew from the Joint Comprehensive Plan of Action with Iran in May 2018 and OFAC revoked General License H, which had previously authorized certain Iran-related transactions by foreign entities owned or controlled by U.S. persons. Although Rice Lake allegedly notified Dini that transactions involving Iran were prohibited, the communication was insufficient, and Dini personnel did not understand that indirect sales to Iran were also barred. Between June 2019 and November 2021, Dini allegedly fulfilled eight orders of weighing equipment and components worth approximately $121,527 to a United Arab Emirates-based distributor, knowing that the goods were ultimately destined for Pandtec, an Iranian weighing systems company. According to OFAC, the sales violated the Iranian Transactions and Sanctions Regulations (“ITSR”) § 560.215(a) because Dini knowingly engaged in trade-related transactions with Iranian entity that would be prohibited for a U.S. person.
Upon receiving a tip in late 2021 that its products were being sold in Iran, Rice Lake immediately launched an investigation, directed Dini to cease all sales to the UAE distributor, and voluntarily disclosed the violations to OFAC. Rice Lake also engaged outside counsel to design and implement compliance program improvements, including training subsidiary employees, vetting end distributors, and adding reexport control warnings to commercial invoices.
According to OFAC, the case highlights the sanctions risks U.S. companies with global operations face for the activities of their foreign subsidiaries, particularly under sanctions programs like Iran that require foreign entities owned or controlled by U.S. persons to comply to nearly the same extent as their U.S. parent. OFAC emphasized that clear guidance, regular training of all relevant personnel, and effective risk-based compliance controls are essential to prevent such violations.