In 2018, SCG Plastics, a Thai company, was fined $20 million by the US Treasury Department for violating anti-Iranian sanctions. According to authorities, the company had been supplying products from Mehr Petrochemical, an Iranian state-owned company owned by its parent company SCG Chemicals since at least 2009. Over two years, between 2017 and 2018, SCG Plastics sold $291 million worth of Mehr Petrochemical products.
To conceal the Iranian origin of these products, SCG Plastics used invoices that listed the United Arab Emirates as the source. This misrepresentation allowed the company to bypass the sanctions against Iran and conduct business with Asian countries. This agreement with the US Treasury Department underscores the seriousness of violating international sanctions and the measures being taken to hold companies accountable for such actions. It also serves as a warning to other companies that may be engaging in similar practices.