Archive for the ‘Netherlands’ Category

Netherlands Company CWT Pays Whopping $5,990,490 to Settle CACR Violations

2014/05/23

By: Brooke Driver

One can only hope that Netherlands-based CWT B.V. learned its lesson when it was slapped with a nearly six million dollar penalty for violating the Cuban Assets Control Regulations. The supposed violations occurred between the dates of August 8, 2006 and November 28, 2012. During this period, the travel service provider CWT reportedly assisted no less than 44,430 people in travel to or from Cuba. As the company became majority-owned by U.S. persons in 2006, its actions became subject to U.S. law, and therefore, the Trading with the Enemy Act.

Although CWT did disclose the majority of these violations to OFAC, a small portion did take place after the voluntary disclosure. OFAC did not demand the base penalty of $11,093,500, but arrived at the still painful total of $5,990,490 based on the following factors:

  • CWT failed to exercise a minimal degree of caution or care regarding its obligations to comply with OFAC sanctions against Cuba by processing unauthorized travel-related transactions for more than four years before recognizing that it was subject to U.S. jurisdiction
  • CWT is a commercially sophisticated international corporation and travel services provider
  • CWT processed a high volume of transactions and assisted a large number of travelers, which caused significant harm to the objectives of the CACR
  • CWT had no compliance program at the time (or an inadequate one)
  • This instance was CWT’s first violation
  • CWT cooperated substantially with OFAC’s cooperation
  • CWT has taken significant remedial actions in order to improve its OFAC compliance procedures

Lesson learned: company ownership is just as important in determining U.S. jurisdiction as location. You may run your operation across the world, but if it is owned by United States citizens, it is subject to United States law, and you will suffer the consequences if you don’t comply accordingly.


Actual and Attempted Iran Shipments worth $63,511 Result in Denied Party Status

2010/04/16

By: Danielle McClellan

Aviation Services International (“ASI”), Robert Kraaipoel, and Niels Kraaipoel reached settlement agreements with the Commerce Department for their involvement in illegal shipments from the US via third countries to Iran and for some apparently foiled attempts to do so.  The three parties agreed to be placed on the Denied Parties List:  Seven years each for ASI and Robert, three years for Niels.  Apparently, two of their three attempts to send stuff illegally to Iran failed to reach Iran.  I guess that goes to show that even if you are not a good illegal exporter, you can get in a lot of trouble.

According to the ASI settlement agreement:

  • In January 2006 ASI violated the Iranian Transaction Regulations (ITR) when it shipped communications equipment from the United States via the Netherlands to Iran.
  • In February 2007 ASI violated the ITR when it attempted to ship aerospace grade aluminum from the United States via Netherlands to Iran and when it exported those items from the United States to the Netherlands with knowledge the items were destined for Iran.  (Apparently that shipment was stopped in the Netherlands.)
  • In March 2007 ASI violated the ITR when it attempted to ship polymide film from the United States indirectly to Iran.  In July 2007 ASI violated the ITR when it attempted to arrange for the goods to be shipped to a fictitious purchaser in Dubai.   (Apparently after the stuff above was stopped in the Netherlands they figured they should ship via Dubai.)

ASI and the two Kraaipoels each where charged with one charge of conspiracy to violate the EAR.  They were each fined the maximum amount of $250,000 per violation, but the penalty is suspended for three years if they don’t have additional violations.  The charging letters said that in committing their acts of conspiracy they “devised and employed a scheme to purchase these items from the US on behalf of Iranian customers and give US manufacturers false information regarding the ultimate destination, end-user and end-use of the items, thereby causing false export control documents to be submitted to the US Government.”

Unfortunately for these guys, the total value of the transactions was $63,511, and they probably didn’t get paid for the two transactions that apparently didn’t get to Iran.  Clearly, for the Kraaipoels, crime didn’t ‘paay.’