Category: Violations

Ever wonder why your license application is taking so long to be reviewed and approved? Many thoughts go through a Compliance Officer’s mind when the license process is taking longer than expected: “Did I make a mistake on the license application?” “Should I have provided more information?”  “Did I miss something in my due diligence?”...

Darus Zehrbach of Westover, West Virginia was recently sentenced to six months in prison for making false statements to a federal agent. Zehrbach applied for an OFAC license to export electric scooters to Iran, however, the license was denied. Despite the denial, Zehrbach exported the scooters from the United States to the United Arab Emirates....

This past December, at the American Bankers Association/American Bar Association Financial Crimes Enforcement Conference, Treasury’s Under Secretary Sigal Mandelker spoke to his audience on the Office of Foreign Assets Control’s (OFAC) Compliance Commitments. While acknowledging that because U.S. economic sanctions can apply to all types of industries and businesses and there may not be a...

After a delay due to the government shutdown, the U.S. government recently announced increases to civil penalties for export related violations. Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, civil penalties for export related violations should have increased on 3 January 2019. However, given the fact that the USG was...

“Hey Alexa, are you a U.S. Person?”  Imagine this.  A conference call with your foreign-based customer is about to begin.  Today’s agenda includes technical discussions of recent upgrades and changes to the designs of some ITAR-controlled items.  Your Trade Compliance Officer has reviewed the material and confirmed that export authorizations are in place approving the...

Like many trade compliance professionals, I go out and peruse various trade compliance newsletters, the U.S. government agencies websites, and other media to keep up-to-date on compliance issues.  Recently, my attention was caught by a case involving Darling Industries of Tucson, Arizona. A closer look at Empowered Officials On February 28, 2019, the Directorate of...

Who are you really interacting with on your social media and professional networking accounts? Is it someone with similar likes and dislikes? A potential business contact? A recruiter offering you a lucrative, new job? Kevin Mallory, a retired CIA officer, saw an opportunity when he was contacted by a headhunter on LinkedIn. The person put...

Last week, FLIR Systems, Inc. entered into a Consent Agreement with Department of State, Directorate of Defense Trade Controls (“DDTC”) to settle allegations of violations of the International Traffic in Arms Regulations (“ITAR”). There were 347 alleged violations cited in the Proposed Charging Letter. These violations included 219 counts of unauthorized exports to Foreign-Person employees;...

Have you ever travelled to a foreign country with your laptop or other electronic device? Are you planning to? These days, answers to these questions will almost unanimously be “yes.” But did you know that U.S. Customs and Border Protection (CBP) has the right to search – and if necessary, detain – your electronic device...

Earlier this month, DDTC published a new Consent Agreement with Bright Lights USA, Inc. of Barrington, New Jersey. This agreement alleges a variety of different ITAR violations, including technical data exports and failure to keep adequate records. Are these problems sufficiently addressed in your company’s export compliance program? As always, it’s important to take note,...