American power tool giant Stanley Black & Decker and its Chinese subsidiary, Jiangsu Guoqiang Tools Co., agreed to pay about $1.9 million to settle allegations from the U.S. Treasury Department’s Office of Foreign Assets Control that the company violated sanctions against Iran.
The Treasury agency said that between about June 29, 2013, and Dec. 30, 2014, Jiangsu Guoqiang Tools exported or attempted to export 23 shipments of power tools and spare parts, valued at about $3.2 million, to Iran, either directly or through third-party countries.
As part of the settlement, Stanley said it will enhance its sanctions compliance program and internal controls. “We have taken and will continue to take steps to ensure all employees are compliant with corporate policies and applicable laws,” said Abigail Dreher, a Stanley spokeswoman.
This is not an isolated incident
The Stanley settlement underscores a rash of recent cases where companies have found themselves on the wrong side of U.S. compliance laws, either knowingly or unknowingly.
Mark Brannan, AEB’s International Business Development Director says this is often because of some common reasons:
- A conscious decision to circumvent ITAR regulations or sanctions lists.
- A lack of understanding for recent changes to the regulations.
- A failure to understand that the laws not only cover the physical movement of goods but the transfer of sensitive data.
- Insufficient master data maintenance. Some companies don’t properly classify products under ITAR and other similar regulations.
- And a lack of understanding by non-U.S. firms as to what is expected of them under U.S. law.
Effective export control compliance program is fundamental
Businesses that hope to thrive in the global marketplace need to understand and manage applicable bans and restrictions.
“An effective export control compliance program is fundamental to
ensuring regulatory compliance,'' says Brannan.'' Any compliance program today must be
configured to cater for changing policies, legislation, technologies, and so
on. It must also be robust and adaptable enough to deal with uncertainty and
Keep your exports under control with AEB's Export Controls
The key to this is checking export transactions against the relevant laws and regulations. And that’s exactly what Export Controls from AEB does for you. The result is less risk and optimized export control processes.
Find out about export control compliance with AEB