Export Control Violation Leads to Billion Dollar Penalty

Posted by Joe Gabro

This is an update to a blog post originally published on March 10, 2017.

Update:  Last month, the US Bureau of Industry and Security (BIS) decided to remove ZTE Corporation from its Entity List, allowing the company to continue business in the United States. 

“By acknowledging the mistakes we made, taking responsibility for them... we are committed to a ZTE that is fully compliant, healthy, and trustworthy.”

- Zhao Xianming, ZTE President

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Topics: Export Management, Export Compliance, Restricted Party Screening, Export Violations

Even the eCommerce Giants Lack Export Control Processes

Posted by Gary M. Barraco

Amazon.com has dominated the eCommerce industry since 1995, originating as an online reseller of books.  During Amazon’s first month in business, it received orders from customers in 50 U.S. states and 45 countries across the world.  Today, the company offers over 183 million products and serves more than 224 million customers. 

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Topics: Export Management, Product Classification, Export License Management, Export Compliance, Export Violations

Iranian Sanctions and the Challenge of Getting Paid

Posted by Arne Mielken

The recent lifting of some Iran sanctions has created considerable interest in the global trading community. However, while there is optimism and hope that a closed market with big investment and opportunity will open to worldwide trade soon, there is also uncertainty. When is the right time for getting back into trading with Iran? Now? Or should we wait a little longer? The messages sent from governments are, at best, mixed. Since mid-January, the EU and the US have formally lifted important elements of their previously enforced strict sanctions. Trade promotion authorities have started setting up trade missions and we read reports about mega-deals being signed. 

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Topics: Export Management, Export Compliance, Restricted Party Screening, Export Violations

Commerzbank Slammed with Anti-Money Laundering Fines

Posted by Lisa Feroli

According to a recent Reuters article, Commerzbank AG, Germany’s second largest lender, has been ordered to pay $1.45 billion to U.S. authorities. This large fine comes after Commerzbank was accused of laundering money through the United States financial system on behalf of black-listed entities – a big mistake in the eyes of U.S. prosecutors. This signifies the importance U.S. Officials put on restricted party screening and strict compliance with these regulations.

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Topics: Export Management, Restricted Party Screening, Export Violations

U.S. Imposes Sanctions Against North Korea in Response to Cyber-Attack

Posted by Fariba Ahdoot

On January 2, 2015, President Obama signed a new Executive Order imposing additional sanctions against North Korea. This came in response to North Korea’s numerous provocations, in particular the cyber-attack on Sony Pictures Entertainment.
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Topics: Amber Road News, Export Management, Export Compliance, Restricted Party Screening, Export Violations

Fokker Services Fined $21 Million for Export Control Violations

Posted by Colleen Bush

“I’m watching you.” Just as Robert De Niro warned Greg Focker in Meet the Parents, Fokker Services should have realized that the U.S. government was watching too. By doing so, it could have avoided a $21 million fine for exporting U.S.-made goods to Iran, Sudan, and Burma in violation of trade sanctions.

Fokker Services, a subsidiary of the Dutch aerospace company Fokker Technologies Holding BV, admitted to more than 1,100 shipments of banned aircraft parts, technology, and services to sanctioned countries between 2005 and 2010. The $21 million fine represents the value of these transactions.

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Topics: Export Management, Export License Management, Export Compliance, Export Violations

Company Fined $5.9M For Failing to Obtain Required Export Licenses

Posted by Colleen Bush

Talk about a Cuban Export Crisis….CWT B.V., a Dutch travel agency, has been fined $5.9M by the U.S. government for violating the trade embargo to Cuba. CWT’s violations took place from August 8, 2006 to November 28, 2012 and involved trips to Cuba by 44,430 people.

But why, you might ask, is a Dutch company getting fined by the U.S. government? In 2006, CWT became majority-owned by U.S. entities and thus subject to the U.S. Trading With the Enemy Act. CWT continued doing business with Cuba, but without obtaining the necessary licenses issued by Treasury’s Office of Foreign Assets Control (OFAC).

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Topics: Export Management, Export License Management, Export Violations

New Jersey Defense Contractor Allegedly Exported Military Blueprints to India

Posted by Kelsey Barker

The owner of two New Jersey defense contracting businesses was arraigned this week for allegedly transmitting military blueprints to India without a license, a major violation of U.S. export laws.

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Topics: Export Management, Export License Management, Export Compliance, Export Violations

Electronic Waste “Recycler” Convicted for Illegal Exports

Posted by Caroline Brown

Two executives of an electronic waste recycling company were convicted in December of smuggling, environmental crimes, mail and wire fraud, and obstruction of justice in conjunction with the illegal export of hazardous waste to China and other countries, according to the U.S. Attorney’s Office for the District of Colorado.

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Topics: Export Management, Export Compliance, Export Violations

Export Violations Lead to $3M in Fines for Chinese Company

Posted by Caroline Brown

Last week the China Nuclear Industry Huaxing Construction Co., Ltd. (Huaxing), a corporation controlled by the People’s Republic of China, pled guilty to violating the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR) and other related charges.

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Topics: Export Management, Export License Management, Export Compliance, Export Violations