If the Compliance Software Can't Catch a Sanctioned Client, That Means a Fine
By the time Virginia-based electronics maker Cobham Holdings discovered its former subsidiary had allegedly sent goods to a blocked Russian entity, it was too late.
December 05, 2018 at 01:00 AM
5 minute read
The original version of this story was published on Corporate Counsel
Virginia-based electronics maker Cobham Holdings Inc. has received a nearly $90,000 lesson from the U.S. Treasury Department's Office of Foreign Assets Control about the dangers of relying too heavily on third-party screening software to detect compliance-related issues.
Trade lawyers said the case presents a cautionary tale for other companies that may be similarly relying on automated screening without additional vetting procedures.
Cobham agreed Nov. 27 to pay $87,507 to settle potential civil liability over three shipments of electronics to a Russian entity that was 51 percent owned by a company that OFAC had blocked under the Ukraine-/Russia-related sanctions program.
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