Category: OFAC

Earlier this month, a 72-year-old Virginia man pleaded guilty to conspiring to violate Iranian sanctions.  Behrouz Mokhtari of McLean, VA, is a naturalized U.S. citizen and a native of Tehran, Iran. According to the Justice Department, from March 2018 until approximately September 2020, Mokhtari conspired to evade Iranian sanctions administered by the Treasury Department’s Office…

It just got more expensive to violate U.S. import/export regulations. In recent weeks, the various governmental agencies who administer and enforce these regulations have released updated penalty amounts. The main culprit? Everyone’s favorite “I” word – inflation! Here’s a rundown of the new changes. Directorate of Defense Trade Control (DDTC) DDTC is the Department of…

It may “take two to tango,” but it takes 27,000 sanctions violations to dance with the Treasury Department’s Office of Foreign Assets Control (OFAC).  Last month, Tango Card, Inc. agreed to pay $116,000 to settle these violations.  This case serves as an important reminder for any ecommerce business. How a gift card company got in…

Remember the postcard tax return?  It’s been touted by various government officials since 1950.  The idea is simple (and beautiful):  What if you could file your taxes on a simple, easy-to-use postcard?  Just imagine all the hours you could save!  Or how about Form 1040EZ?  The name itself underscores the simplicity.  That is, until you…

Are you shopping for explosives to use in your next gold mining operation?  (Well, of course you are!  Isn’t everyone?)  Here’s some free professional advice:  Don’t purchase these explosives from Cuba.  Specifically, from a state-owned entity that is subject to the Office of Foreign Assets Control’s (OFAC) Cuban Assets Control Regulations (CACR).  Otherwise, you could…

Over the past month, we’ve been inundated with calls and emails from people trying to export defense items to Ukraine.  Mostly firearms, ammunition and body armor.  The majority of these questions seem to come from former U.S. military personnel who are travelling to that area of the world to lend their expertise and help.  It…

Tell me if this scenario raises any red flags.  Your U.S. company produces complicated Industrial Microwave Systems (IMS).  These systems can be used for things like food and beverage processing.  With some modifications, they can also be used to create high-power directed-energy weapons systems.  One day, you’re contacted by a representative from a company you’ve…

December 1989.  Dresden, East Germany.  The Berlin Wall has fallen, heralding the end of the Cold War.  A surge of pro-democracy sentiment sweeps through Eastern Europe.  One fateful night in December, a crowd of demonstrators tries to storm a nondescript building known to be the East German headquarters of the KGB.  Rushing outside, a panicked,…

Do you remember when President Obama “lifted” the Cuba sanctions?  It seems like only yesterday.  There was a press release.  Big headlines.  Secret meetings at the Vatican.  Even a photo-op with Raúl Castro (Fidel’s brother).  It was all so … exciting! Predictably, within 24 hours, our email and phones started blowing up with dozens of…

A few weeks ago, the U.S. Department of Justice (DOJ) issued a stark warning to companies and individuals worldwide.  Export and sanctions enforcement efforts are on the rise.  Especially for anyone who engages with China, Russia, North Korea or Iran. During a keynote address on October 5 in New York, associate deputy attorney general John…