Enforcement Release - Essentra FZE

Date issued: Jul. 16 2020

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TURBOFAC Commentary (906 words)

Consolidated comment on the Essentra FZE Case

1) This comment addresses the following documents in the Research System:

* Civil Enforcement Information - Essentra FZE
* Settlement Agreement (OFAC) - Essentra FZE
* Deferred Prosecution Agreement - Essentra FZE (“the DPA”)

See DOJ Press Release at https://www.justice.gov/opa/pr/essentra-fze-admits-north-korean-sanctions-and-fraud-violations-agrees-pay-fine.

2) The Essentra FZE case is the first enforcement action since 2014 to be (i) against a non-bank entity and (ii) result in concurrent OFAC-administered civil penalty and DOJ-issued Deferred Prosecution Agreement. The reason for this is, evidently, the willful and evasive nature of the conduct underlying the violations, as described in the associated documents.

3) BASES FOR LIABILITY

While the fact pattern is relatively rare, the bases for liability are...