OFAC settles with Rice Lake Weighing Systems over Iran sanctions violations

WASHINGTON, August 12, 2026 — The US Treasury Department’s Office of Foreign Assets Control has reached a $60,764 settlement with Rice Lake Weighing Systems over eight apparent violations of US sanctions on Iran.

Rice Lake, a Wisconsin-based manufacturer of weighing equipment, agreed to settle potential civil liability arising from transactions by its Italian subsidiary, Dini Argeo S.r.l. OFAC said Dini exported weighing and scale equipment through a distributor in the United Arab Emirates while knowing the goods were ultimately destined for Iran.

The eight orders, valued at approximately $121,527, were fulfilled between June 2019 and November 2021. OFAC said Dini personnel knew or had reason to know the UAE distributor would reexport the goods to Pand Weighing Control, or Pandtec, an Iranian company with which Dini had previously conducted direct business.

Rice Lake acquired Dini in 2016. Following the US withdrawal from the Iran nuclear agreement and the revocation of General License H in 2018, Rice Lake instructed Dini that transactions involving Iran were prohibited. OFAC found, however, that Rice Lake did not take sufficient steps to ensure its subsidiary understood that indirect sales to Iran were also prohibited or to monitor compliance.

Rice Lake investigated after receiving a tip in late 2021 that its products were being sold in Iran, halted future sales to the UAE distributor and subsequently disclosed the conduct to OFAC. The agency classified the case as voluntarily self-disclosed and non-egregious.

OFAC cited Dini’s reckless disregard of sanctions requirements and Rice Lake’s inadequate compliance guidance as aggravating factors. Mitigating factors included the companies’ lack of recent OFAC enforcement history, the limited share of overall sales represented by the transactions, Rice Lake’s remedial measures and its cooperation with the investigation.

OFAC said the case highlights the need for US companies to ensure foreign subsidiaries receive clear, locally appropriate sanctions training and maintain controls addressing diversion risks, particularly when dealing with counterparties in jurisdictions such as the UAE.