U.S. company agrees to pay $894,000 to settle violations of Sudanese sanction regulations

Company agrees to settle Sudanese sanction regulations

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a New York company specializing in sales of advanced communications systems, software, and services agreed to pay approximately $894,000 to resolve its potential civil liability for four apparent violations of the U.S. Sudanese sanctions regulations.

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According to an OFAC release [PDF 44 KB], the company (through its Arizona subsidiary and a related Canadian company) between June 2014 and October 2015 indirectly exported warrantied satellite equipment and facilitated services and training to a government-owned entity in Sudan. 

Summary

At issue were four violations of the Sudanese sanctions regulations, when the company indirectly exported satellite equipment under warranty, facilitated ongoing telephone support for the equipment, and facilitated training with respect to the equipment—all despite knowing that the end-user for the equipment and services was a government-owned entity in Sudan.

In 2014, a related Canadian company prepared a price quote for the sales, with an ultimate destination of the equipment being Sudan. A month prior to shipping the equipment to the related Canadian company, the Arizona subsidiary received multiple warnings that there might be export issues because the end-user of the equipment was located in Sudan. Despite these warnings, the Arizona subsidiary shipped the satellite equipment to the related Canadian company in two shipments, both in June 2014. The Canadian subsidiary then integrated the satellite equipment into a system of satellite-enabled earth-based telecommunications stations and shipped them for use at 14 locations in Sudan. The Canadian subsidiary continued to provide telephone support for the equipment shipped to the government-owned entity in Sudan.

The company voluntarily disclosed the apparent violations, and OFAC determined these apparent violations constituted an egregious case.

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