Virginia firm fined US$87,507 for violating US Ukraine sanctions
COBHAM Holdings based in Arlington, Virginia has agreed to pay a fine of US$87,507 to the US Treasury Department's Office of Foreign Assets Control (OFAC) for violating three Ukraine related sanctions regulations
COBHAM Holdings based in Arlington, Virginia has agreed to pay a fine of US$87,507 to the US Treasury Department's Office of Foreign Assets Control (OFAC) for violating three Ukraine related sanctions regulations.
The violations, which occurred with Cobham's former subsidiary Aeroflex/Metelics Inc. between July 31, 2014 and January 15, 2015, involved the shipment of electrical switches through distributors in Canada and Russia to Almaz Antey Telecommunications, a Russian entity on OFAC's Specially Designated Nationals And Blocked Persons (SDN) List for allegedly violating the Ukraine related sanctions regulations.
Cobham blamed the breakdown in its compliance on the failure of its third-party screening software to properly flag Almaz Antey among the transactions, American Shipper reported.
OFAC said Cobham voluntarily self-disclosed the violations and cooperated with the investigation, resulting in a reduced civil penalty. Since the violations, Cobham has acquired new screening software and increased its export compliance resources and training.
According to the agency, this case 'demonstrates the importance of companies operating in high-risk industries (ie, defence) to implement effective, risk-based compliance measures, especially when engaging in transactions involving high-risk jurisdictions.'