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Thai plastics firm will pay $20 million to settle with U.S. over Iran sanctions violations
WASHINGTON (AP) — A Bangkok-based plastics firm has agreed to pay $20 million to settle with the U.S. over 467 «egregious» violations of Iran sanctions, the U.S. Treasury announced on Friday.
SCG Plastics Co. used U.S. banks to process $291 million in sales of Iranian high-density polyethylene resin from 2017 to 2018, according to the signed settlement agreement between the firm and Treasury’s Office of Foreign Assets Control.
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The resin, used for product bottles and industrial items, was manufactured by an Iranian joint venture owned in part, by SCG Plastics’ parent company, SCG Chemicals and the National Petrochemical Company of Iran, which is a government entity.
The settlement states that SCG Plastics used «shipping and documentation practices that obfuscated the product’s Iranian origin and Iranian parties’ involvement,» which caused banks to unknowingly process transfers in violation of OFAC’s sanctions on Iran.
«We will continue to deploy our sanctions authority to counter Iran with further actions in the days and weeks ahead,» Treasury Secretary Janet Yellen said.
(Tom Williams/CQ-Roll Call, Inc via Getty Images)
«As a result of these transactions, significant economic benefits were conferred to Iran’s petrochemical sector, a major source of revenue generation for the Iranian regime,» Treasury says. OFAC determined that the 467 violations of Iran sanctions were «egregious» and fined the company $20 million, which is to be paid within 90 days.
While SCG Plastics is no longer in operation, a signed agreement between OFAC and the firm releases SGC Plastics from any liability related to the sanctions violations.
The fines come as U.S. administration officials have announced plans to impose more sanctions on Iran after Tehran launched an unprecedented attack on Israel that could fuel a wider war in the Middle East.
On Thursday, the U.S. and U.K. imposed a new round of sanctions on Iranian people and firms associated with drone production.
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«We will continue to deploy our sanctions authority to counter Iran with further actions in the days and weeks ahead,» Treasury Secretary Janet Yellen said.
«We have also vigorously enforced our sanctions, including by levying historic fines and exposing sanctions evasion schemes and networks. Our actions make it harder and costlier at every turn for Iran to continue its destabilizing behavior.»
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US military shoots down Houthi drones as Trump’s strikes against terrorist group continue
U.S. warships have shot down roughly a dozen Houthi drones since President Donald Trump launched airstrikes against the terrorist organization on Saturday, Fox News has learned.
A senior defense official told Fox News of the developments on Sunday. The drones were aimed at the U.S. Navy’s Truman Carrier Strike Group, and were shot down «well before» they posed a serious threat, the official added.
The latest military action came after nearly a year and a half of attacks from Houthis, both on commercial merchant vessels and U.S. military ships. In a Truth Social post on Saturday, Trump wrote that he had «ordered the United States Military to launch decisive and powerful Military action against the Houthi terrorists in Yemen.»
«It has been over a year since a U.S.-flagged commercial ship safely sailed through the Suez Canal, the Red Sea, or the Gulf of Aden,» Trump continued. «The last American Warship to go through the Red Sea, four months ago, was attacked by the Houthis over a dozen times.»
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U.S. warships intercepted and shot down around a dozen Houthi drones since President Donald Trump’s airstrikes were launched on Mar. 15. (Getty Images/AP)
Trump wrote that the «relentless assaults have cost the U.S. and World Economy many BILLIONS of Dollars while, at the same time, putting innocent lives at risk.»
«To all Houthi terrorists, YOUR TIME IS UP, AND YOUR ATTACKS MUST STOP, STARTING TODAY. IF THEY DON’T, HELL WILL RAIN DOWN UPON YOU LIKE NOTHING YOU HAVE EVER SEEN BEFORE!» his post concluded.
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U.S. President Donald Trump speaks during a Cabinet meeting at the White House on February 26, 2025, in Washington, DC. (Andrew Harnik/Getty Images)
Trump re-designated the Houthis as a foreign terrorist organization (FTO) in January. His first administration had named the Houthis as an FTO, but the Biden administration later reversed the move.
On Sunday, the White House released photos of Trump, Secretary of State Marco Rubio and National Security Adviser Mike Waltz monitoring the strikes.
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President Trump is taking action against the Houthis to defend U.S. shipping assets and deter terrorist threats, the White House posted on X on March 15, 2025. (The White House)
«President Trump is taking action against the Houthis to defend US shipping assets and deter terrorist threats,» the White House wrote on X. «For too long American economic & national threats have been under assault by the Houthis. Not under this presidency.»
Fox News Digital’s Danielle Wallace contributed to this report.
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