I CMA CGM —“ December 23, 2010 Le Directeur Général ‘The Honorable Peter T. King ‘Committee on Homeland Security, Ranking Member Congress of the United States House of representatives 339 Cannon House Office Building Washington, DC 20515-3203 OfRef.:PHS/LB-131/2010 Re: Your letter dated December 8, 2010 Dear Mr. King, Tam writing you in response to you: letter referenced above in which you express your concem about CMA CGM’s reported business relationship with the Islamic Republic of an, First and foremost, rest assured that CMA CGM takes compliance with U.N., U.S. | and B,U, sanetions on Itan oxtromely seriously, CMA CGM, a French company, is committed to comply with all laws, regulations and policies applicable to its operations with Iranian businesses, included those enacted or adopted by the Republic of France, the uropean Union, the United Nations and the United States. CMA CGM is fully committed to comply with UN. resolutions 1737, 1747, 1803 and 1929 and also with the U.S. regulations, including the Comprehensive Iran Sanctions, Accountability, and Divestment Act that became effective on July 1, 2010, and the U.S. Iranian Transactions Regulations administered by the office of Foreign Assets Control of the U.S, Department of Treasury regarding U.S. persons being generally prohibited from ‘engaging in transactions involving Iran. CMA CGM is equally committed to comply with E.U, Regulation n°961/2010 related to Iran sanotions effective as of October 27, 2010, that is even more restrictive than the UN, sanctions regime. CHUA CW Sage social 4 qual darenc - 13235 Marselle edex02 - Franceon CMACGM a December 23, 2010 Page2 ‘You mention in your letter the incident that CMA CGM had to face following the discovery on October 26, 2010 of a weapons’ shipment concealed in thirteen sealed containers owned by Behineh Trading, an Iranian company, which were transported on a CMA CGM ship from Iran to Nigeria. As you rightly underline in your letter, Behineh ‘Trading has not been placed on the USS. Specially Designated Nationals and Blocked Persons list, nor designated as an embargoed entity by United Nations Security Council Resolutions 1737, 1747, 1803 or 1929 related to Iran sanctions, or by E,U, Regulation n°96 1/2010. At the timo, CMA CGM retained a third-party screening company, World-Check, a leading provider on risk intelligence, to conduct a due diligence inquiry on Behinch ‘Trading, which did not identify actual issues or red flags that could have raised CMA CGM’ suspicion about the true nature of the shipment, which was labeled by the owner as building materials, or the deceptive and illegal conduct of the Iranian customer with whom we had no prior relationship. CMA CGM fully cooperated with the Nigerian authorities in relation to this incident and was exonerated from any liability, Please note that CMA. CGM donied the requast from Behineh Trading to modify the final destination of the shipment fo Banjul, Gambia, in compliance with Nigerian regulations that prohibit such re-export. As a result of this incidert, Behineh Trading is now included in our database of prohibited entities You can be assured that CMA CGM senior management and employees worldwide are fully aware of the U.N,, U.S. and EU. sanctions regime regarding Iran and are, once again, committed to comply with all applicable regulations. To this effect, CMA CGM hes adopted and is putting in place a comprehensive set of intemal compliance measures, including : © A group-wide policy that (i) requites reporting to relevant Government authorities any reasonable suspicion that a vessel is transporting goods prohibited under the ULN. resolutions and the EU Regulation cited above, and (ii) prohibits entering into any contractual relationship with any entity, individual or Iranian government agency listed on the annexes to the UN., US. and E.U. regulations ; 7 © A process which systematically checks and rejects in our systems any proposed transaction with n Iranian entity that is listed in the U.N. resolutions, and the U.S, or EU, laws or regulations ;oan CMA CGM a December 23, 2010 Page 4 ‘We fully intend to continue to abide by all applicable laws and regulations in business transactions to and from Iran, and are committed to exercise the utmost vigilance on the goods transported and the entities involved in such operations to prevent Iran from violating the sanctions. We will remain at the forefront of shipping companies in terms of observance of laws and regulations, specifically with respect to Ikan, However, as the third largest shipping company in the world, our primary mission remains to transport legitimate cargoes, as I trust you can appreciate, | Very respectfully, Kowal — Philippe Soulié Chief Executive Officer