Neogen Corp. disclosed the Treasury Department’s Office of Foreign Assets Control (OFAC) concluded a probe into potential sanctions violations regarding transactions by the food and animal safety company with parties in Iran without issuing a fine.
Neogen said it received a cautionary letter from OFAC in March “concluding its investigation without civil monetary penalty or other enforcement action,” the company disclosed in a regulatory filing Tuesday.
In March 2020, the company received an administrative subpoena from OFAC regarding activities or transactions involving parties located in Iran, it disclosed in previous filings.
Neogen conducted an independent internal investigation and disclosed information concerning services it provided to a U.S.-based party engaged in veterinary activities involving an Iranian party, the company said.
Neogen said it “implemented additional compliance measures to prevent inadvertent dealings with restricted countries or parties,” including enhancing its international trade compliance program.
The company said it reserved $600,000 in fiscal year 2020 for potential fines or penalties, but with the probe “effectively resolved,” it reversed the accrual for the fourth quarter of 2023.