Latest News about Sanctions
On December 20, 2018, the Office of Foreign Assets Control (OFAC) published a penalty notice and settlement agreement with Zoltek Companies, Inc., a U.S. producer of carbon fiber. OFAC found that Zoltek had violated U.S. sanctions laws due to its Hungarian subsidiary, Zoltek ZRT, having purchased inputs from a Specially Designated National (SDN) in Belarus. Zoltek agreed to pay a substantial fine of $7,772,102 and to implement various measures to ensure it would not commit future violations.
Imposition of economic sanctions by nations worldwide, led by the United States, and Non-Governmental Organizations, such as the United Nations, has grown exponentially in the last decade. This has caused compliance programs to become more challenging, difficult and expensive as they seek ways to stay abreast of fast changing rules, penalties and an environment constantly in flux.
Most compliance officers are familiar with sanctions imposed by the UN, EU, US, Canada, and other countries. These international organizations and states impose targeted financial sanctions– such as asset freezes, arms embargoes and travel bans – in order to achieve a desired outcome. A lesser known form of sanctions is one that belongs to Multilateral Development Banks (MDB) like the World Bank Group.
WMD Proliferation Detection Can Be Readily Incorporated Into Existing AML/Terrorist Financing Programs, A new Report by the Center for New American Security
The proliferation of weapons of mass destruction (WMDs) is a critical threat facing the international community. As such, finding new and more effective ways of combating the proliferation of WMDs has become a major concern of the international community.