The Confusing World Of Export Compliance Sometimes the regulations can be confusing and unclear about how to accomplish the tasks required to remain export compliant. One of these examples is Restricted Party Screening, where screening for denied or restricted entities is one of the most crucial risk management tasks within export compliance. All people, even…
Often, when we think of export compliance, our focus is on the Shipping Department and boxes going out the door. But did you know that OFAC recently settled with a Chicago Private Equity fund for $11.48M? This firm had been managing a $50M investment that had ties to Suleiman Kerimov, a sanctioned Russian oligarch and…
Screening is an essential element of all export compliance programs. Serious penalties for noncompliance do exist in this area, even when it’s unintentional. It’s important that every exporter be aware of some basic best practices for effective and successful screening. Garbage In – Garbage Out… Data integrity is crucial! We’ve all heard the saying garbage…
Under the September 29th rule, any entity, regardless of location, that is at least 50 percent owned by one or more entities on the BIS Entity List or the BIS Military End-User (MEU) List will automatically be subject to Entity List/MEU List restrictions. If this sounds familiar to you then you are right! It is…
The U.S. Government has certainly had a busy summer, and the current administration was serious about its commitment to increased enforcement. Months ago, they stressed that enforcement was coming, and they have indeed followed through on that promise. See the below table for recent examples. Who? Penalty What Happened? Andritz, Inc. (Pennsylvania) $1.6 million Exported…
Why Identifying Red Flags Matters in Trade Compliance Many companies sell products worldwide, which is why it is important to identify trade compliance issues and red flags to prevent an export violation from occurring. This blog acts as a reminder and points out some important questions to ask yourself when processing transactions that involve shipping…
Did you know that the anti-boycott laws are part of export compliance? If not, you are not alone as this is often an overlooked due diligence requirement necessary to comply with the U.S. export laws. Understanding what U.S. anti-boycott compliance means and how it affects day-to-day operations is key to adhering to the requirements. These…
Complying with export regulations can be hard! Knowing where to find the regulations, how to interpret them and apply them to your business in a constantly dynamic and changing environment is challenging to say the least; not to mention that regulations are not static. This means what was okay last week, may not be okay…
Two Russia-born U.S. citizens, Sergey Nefedov from Anchorage, Alaska, and Mark Shumovich from Bellevue, Washington, were arrested for allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia without the required export authorization and approvals through the company Absolut Auto Sales…
What Is OFAC & Why Is It Important? According to their website, the Office of Foreign Assets Control (“OFAC”) of the US Department of the Treasury “administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in…