A U.S. technology company is being investigated by the Office of Foreign Assets Control for possible Iran sanctions violations, the company said in an Aug. 4 Securities and Exchange Commission filing. California-based Harmonic Inc. said OFAC is looking into transactions made with Iran by France-based Thomson Video Networks, which Harmonic acquired in 2016. The company said it may be subject to civil, criminal and monetary penalties, the loss of export privileges or “in extreme cases, imprisonment of responsible employees.”
Iran Export Controls
Certain items on the Commerce Control List require a license from BIS to export them to Iran. The Iranian Transactions Sanctions Regulations (ITSR) (31 CFR Part 560) also prohibit the export and reexport of goods to Iran subject to EAR.
Export Compliance Daily is providing readers with some of the top stories for July 27-31 in case you missed them.
Democratic and Republican senators called on the State Department to do more to pressure the Nicolas Maduro regime in Venezuela, saying the U.S.’s approach, which they called ineffective, should include more multilateral support and stronger sanctions against Maduro’s allies. Several senators said they would back legislation to grant the administration more sanctions powers.
A Pennsylvania cookware coating manufacturer was fined about $824,000 after its foreign subsidiaries violated U.S. sanctions against Iran, the Office of Foreign Assets Control said in a July 28 notice. OFAC said Whitford Worldwide Company subsidiaries in Italy and Turkey illegally exported coatings to Iran, and U.S. company employees oversaw the transactions.
The Office of Foreign Assets Control fined Amazon more than $130,000 for violating several U.S. sanctions programs and failing to follow reporting requirements for hundreds of transactions. Amazon processed online orders sent to a range of sanctioned countries in the Middle East and Asia and did not follow the agency’s reporting requirements for more than 300 transactions conducted under a Crimea general license, OFAC said in a July 8 notice. OFAC said the violations were caused by “deficiencies” in Amazon's sanctions screening program.
The Trump administration is considering more measures to punish Beijing for interference in Hong Kong, including sanctions outlined in the Hong Kong Autonomy Act, Secretary of State Mike Pompeo said. While Pompeo declined to say how far the administration would go to sanction China, he said President Donald Trump wants to ensure Hong Kong is “treated just like mainland China.”
The Treasury Department’s Office of Foreign Assets Control on June 5 issued a series of frequently asked questions to clarify a January executive order that expanded U.S. sanctions authority against Iran (see 2001100050). The FAQs clarified that the U.S. will not target Iranian medical manufacturers, defined the sectors of Iran’s economy referenced in the order and specified which goods and services may be targeted. Before this guidance, the agency had done little to define the broad scope of the order, which was causing confusion about the reach of the authorities and the Iranian sectors that would be subject to expanded sanctions (see 2001170034).
Export Compliance Daily is providing readers with some of the top stories for May 11-15 in case you missed them.
The State Department added Cuba to a list of countries that do not cooperate with U.S. counterterrorism efforts and the Arms Export Control Act, adding that it will block sales or licenses involving exports of defense goods to Cuba, the agency said May 13. This year marked the first time the U.S. recognized Cuba as not cooperating with the AECA since 2015, the agency said. Others on the list include Iran, North Korea, Syria and Venezuela.
Two Iranian nationals were charged with violating U.S. export controls and sanctions after they tried to help Iranian entities buy a petroleum tanker, the Justice Department said May 1. Amir Dianat and Kamran Lajmiri allegedly concealed details about the transaction from the seller, financial institutions and the U.S. government, the agency said, and failed to disclose that the tanker was destined for Iran. Both were charged with violating the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations. The U.S. also filed a civil forfeiture action against Dainat for about $12.3 million, saying the funds were used in a money-laundering scheme to buy the tanker. The scheme involved the National Iranian Oil Company, the National Iranian Tanker Company and the Islamic Revolutionary Guard Corps-Qods Force, all on the Specially Designated Nationals list. The tanker was valued at more than $10 million, Justice said.