Know Your Sanctions Lists (Beyond the CSL) – BIS Export Violations
Beyond the Consolidated Screening List, ECScreening provides data from a growing number of official U.S. and foreign government sanctions lists and other sources to bring useful information to subscribers.
One of these lists, from the Department of Commerce’s Bureau of Industry and Security (BIS) is the BIS Export Violations list. BIS publishes the names and case documentation for individuals and entities determined to have committed export violations.
In many cases, individuals or entities listed on the BIS Export Violation will be found on other specific sanctions list. One recent example, Walid Chehade (BIS Case E2631), was also added to the Treasury Department’s Specially Designated Nationals (SDN) List, the State Department’s ITAR Debarred List, and the Commerce Department’s Denied Persons List (DPL). These actions were based on a conviction for ITAR export violations.
However, another recent example, Carl Zeiss SBE LLC, was assessed a $55,000 civil penalty under a settlement agreement for a series export violations. The company was not debarred or otherwise listed as a denied party, although that remained technical possible if the civil penalty is not paid. BIS published the order, settlement agreement, and proposed charging letter.
Settlement agreements serve as important background information for due diligence, highlighting weak export compliance areas that have already been identified.
If your screening process turns up a BIS export violation, it is important to review the published documents to determine whether the violation directly impacts a proposed transaction or is merely informative.