Latest News about Sanctions
If compliance officers were expecting a softening of Ukraine-related sanctions against Russia, they may be in for an unpleasant surprise. Recent times have only exposed new efforts to punish Moscow for its hostile actions, which may increasingly complicate the day-to-day jobs for compliance suites.
Lessons from the Euroturbine Case: Global Trends and Enhanced Due Diligence Essential to Safeguard Your Business
On February 18, 2019, Euroturbine B.V. (Euroturbine), a Dutch supplier of specialist parts for gas and steam turbines, was fined for the illicit export of so-called ‘dual-use’ items with full knowledge that the items would eventually reach Iran.‘Dual-use’ items are those goods, products or technologies, normally used for civilian purposes but which may have military or Weapons of Mass Destruction related applications. As turbine engines and parts are made of high alloy materials, and can be used to power a number of military vehicles, they are considered ‘dual-use’ for export purposes, and cannot be exported without permission from the Dutch government.
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.