August 9, 2021

Multinational consumer appliance manufacturer discloses OFAC investigation

In a recent prospectus issued by Arçelik AS, a multinational manufacturer of household appliances and consumer electronics based in Turkey, the company disclosed an ongoing investigation by the US Office of Foreign Assets Control.  The investigation is focused on transactions that involved US dollar payments for the sale of certain consumer appliance products to distributors in Iran.  Arçelik reported that it is cooperating with the investigation, and has submitted a report to OFAC related to these payments.  Arçelik noted that it has implemented a comprehensive remediation program to ensure compliance with Iran-related sanctions, and has ceased all activities involving  the sale or shipping of consumer goods to Iran, but added that the violations of these and other sanctions could adversely affect its reputation and lead to financial and other penalties that might negatively impact its operations and financial condition.

2021 Prospectus