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Essentra Unit Settles With US Department Of Justice, To Pay $667K Cash Penalty

Essentra plc. (ESNT.L), a provider of essential components and solutions, announced Friday its unit Essentra FZE Co. Ltd. has reached a public settlement with the US Department of Justice or DoJ.

The settlement resolves the DoJ's and the U.S. Department of the Treasury's Office of Foreign Assets Control or OFAC's investigation into a small number of unauthorised transactions engaged in during 2018 by two employees of Essentra FZE and linked to North Korea. Essentra FZE undertakes Essentra's Filters activities in Dubai.

Essentra FZE has agreed to pay a cash penalty of around $666.54 thousand or about 530 thousand pounds, under the terms of a Deferred Prosecution Agreement or DPA with the DoJ, as well as a corresponding settlement with the OFAC.

The company noted that none of the affected transactions by the two employees were approved or known by senior management outside of the UAE and both employees have since been exited from the business.

Separately, the company has made a voluntary disclosure to OFAC, with regards to certain historic transactions dating as far back as 2015.

Paul Forman, Chief Executive said, "A very thorough and in depth investigation has been carried out to fully understand the root cause of the issues we have seen. We have made a very significant investment of both time and money, which has now equipped us with enhanced protection against any potential future issues of this nature."

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