Source: https://www.learnexportcompliance.com/blog/category/ofac/
Timestamp: 2018-11-20 14:45:42
Document Index: 598751343

Matched Legal Cases: ['art 560', 'art 510', 'art 510', '§ 1701', 'art 510', '§ 560', 'art 560']

OFAC – Export Compliance Training Institute
Archive for the ‘OFAC’ Category
OFAC Revokes JCPOA-Related General Licenses, Amends Iranian Transactions and Sanctions Regulations, and Publishes Updated FAQ
(Source: Treasury/OFAC, 27 Jun 2018.)
Several actions are being taken in furtherance of President Trump’s May 8, 2018 decision to withdraw from the JCPOA and begin re-imposing the U.S. nuclear-related sanctions that were lifted to effectuate the JCPOA sanctions relief, following a wind-down period. These actions include:
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has revoked Iran-related General Licenses H and I, which were issued in connection with the Joint Comprehensive Plan of Action (JCPOA). Archival versions of General Licenses H and Iwill still be available on OFAC’s website to assist persons in determining which activities were not sanctionable or prohibited while those authorizations were in effect and how best to wind down such activity.
OFAC also amended the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR), in order to narrow the scope of the general licenses authorizing the importation into the United States of, and dealings in, Iranian-origin carpets and foodstuffs, as well as related letters of credit and brokering services, to the wind down of such activities through August 6, 2018 and to issue two new general licenses authorizing the wind down, through August 6, 2018, of transactions previously authorized under General License I, and the wind down, through November 4, 2018, of transactions previously authorized under General License H. The amendment of the ITSR is now effective and published in the Federal Register.
OFAC has also updated Frequently Asked Questions (FAQs) 4.3, 4.4, and 4.5from its FAQs Regarding the Re-Imposition of Sanctions Pursuant to the May 8, 2018 NSPM Relating to the JCPOA.
Posted in Iran, JCPOA, OFAC
Treasury/OFAC Amends and Reissues North Korea Sanctions Regulations
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is announcing the amendment and reissuance in its entirety of the North Korea Sanctions Regulations, 31 C.F.R. part 510, in order to implement Executive Order (E.O.) 13687, E.O. 13722, and E.O. 13810, and to reference the North Korea Sanctions and Policy Enhancement Act of 2016 and the Countering America’s Adversaries Through Sanctions Act of 2017. Pursuant to these authorities, all property and interests in property of the Government of North Korea and the Workers’ Party of Korea are blocked, and U.S. persons are generally prohibited from engaging in transactions with them without authorization from OFAC and must block property or interests in property that are in, or come within, the United States or the possession of a U.S. person. In addition, these authorities provide the Secretary of the Treasury, in consultation with the Secretary of State, additional tools to disrupt North Korea’s ability to fund its weapons of mass destruction and ballistic missile programs. OFAC is also publishing new and updated North Korea-related FAQs.
The Regulations and the FAQs emphasize that all U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all individuals and entities within the United States, and all U.S.-incorporated entities and their foreign branches. Furthermore, all transactions within the United States, including all financial transactions that transit the U.S. financial system, must comply with OFAC regulations. For additional information, see FAQ 11 and 31 C.F.R. part 510, subpart G.
Violations of the North Korea Sanctions Regulations, issued under the authority of the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06 (IEEPA), and other statutes can result in substantial civil monetary penalties, referral for criminal prosecution, or both. Each violation of the North Korea Sanctions Regulations is subject to a civil monetary penalty of up to the greater of the IEEPA statutory maximum ($289,238 as of March 1, 2018) or twice the value of the underlying transaction. Criminal penalties of IEEPA can reach $1,000,000 and 20 years imprisonment per violation. For additional information, see FAQ 12 and 31 C.F.R. part 510, subpart G.
For additional information regarding OFAC’s prohibitions and penalties, see Basic Information on OFAC and Sanctions.
The regulations will be published in the Federal Register, and the changes will take effect, on: March 5, 2018.
Further information about the North Korea sanctions may be found here
Posted in North Korea, OFAC, Sanctions, Treasury Dept
Company Pays $1,220,400 for 37 Violations of the Iranian Transactions and Sanctions Regulations
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced in December 2017, a $1,220,400 settlement with DENTSPLY SIRONA INC. (DSI), a US company with the successor in interest to DENTSPLY International Inc. (“DII” and, together with DSI, “DENTSPLY”) to settle a potential civil liability for 37 apparent violations of § 560.204 of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560 (ITSR).
Around November 26, 2009 and July 5, 2012, DII subsidiaries UK International (“UKI”) and DS Healthcare Inc. (d.b.a. Sultan Healthcare), (“Sultan”), exported 37 shipments of dental equipment and supplies from the US, directly or indirectly to Iran, to distributors in third-countries, with knowledge or reason to know that the goods were ultimately destined for Iran. OFAC determined that DII did not voluntarily disclose the apparent violations and that the apparent violations constitute a non-egregious case.
Full Details: https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20171206.aspx
Posted in Iran, OFAC, Sanctions, Violations & Fines
US Firms Part Ways with China’s ZTE Monitor
Part of the settlement with OFAC required the company to hire an initial independent compliance monitor approved by the US government for a three-year term. The monitor is responsible for preparing the initial three annual audit reports to be provided to the US government. In addition, ZTE had to hire an independent compliance auditor, also approved by the US government, for an additional three years to prepare the remaining three annual audit reports.
Guidepost Solutions and Larkin Trade International were hired in June 2017 by the US monitor, James Stanton, a Texas civil and personal injury lawyer in charge of the oversite regime for ZTE. Stanton’s job is to help evaluate ZTE’s US export controls compliance and sanctions laws, and mitigate any future violations. US District Judge Ed Kinkeade, who presided over the ZTE sanctions case, actually rewrote the agreement to put Stanton in charge of monitoring the company before signing off on the plea deal. It has been said that Stanton has a lack of experience in US trade controls and the order naming him is sealed, leaving the reasoning behind the judge’s decision unclear. This situation is a bit of an anomaly because generally, the Department of Justice chooses an independent monitor in corporate criminal cases from candidates proposed by the company, which is how the agreement was originally written before Judge Kinkeade rewrote it. ZTE and the Justice Department agreed to Judge Kinkeade’s choice and the changes to the monitorship agreement, sources said, because the plea had already been negotiated and filed in the judge’s court and a temporary license allowing ZTE to continue to obtain US made goods was about to expire.
In December 2017, rumors broke out that Guidepost Solutions and Larkin Trade International had resigned in August 2017 from the job of actively auditing ZTE. Although the exact reason is unclear, some say it was a result of Stanton restricting their access to ZTE documents and officials, which ultimately hindered their ability to effectively monitor the company. Stanton’s first report was due to the US government last month and this report, as well as the subsequent 2 reports will decide whether the company is liable for an additional fine of $300 million or being added to the US denial list.
Nearly all parties related to the case, including Guidepost Solutions, Larkin Trade International, Judge Ed Kinkeade, and James Stanton have all declined requests for comments based on this news. Additional details about this story and the ties between Judge Kinkeade and James Stanton can be found at https://www.reuters.com/article/us-usa-zte-exclusive/u-s-experts-resign-from-monitoring-chinas-zte-corp-sources-idUSKBN1EG03R
Posted in BIS, China, EAR, OFAC, Sanctions, Treasury Dept, Violations & Fines
Posted in Export License, Iran, OFAC, Violations & Fines
Posted in OFAC, Treasury Dept, Violations & Fines