Enforcement Release - Berkshire Hathaway Inc

Date issued: Oct. 21 2020

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TURBOFAC Commentary (769 words)

Notes:

1) LEGAL BASES FOR LIABILITY

As it relates to the legal bases for the penalty, there is nothing in the Berkshire Hathaway case that is particularly novel. 560.215 of the ITSR provides that non-U.S. persons owned or controlled by U.S. persons are prohibited from engaging in certain activities involving Iran that would be prohibited if they were engaged in by U.S. persons. Direct and indirect exportations of goods to Iran is one type of activity that is prohibited for “U.S.-owned or -controlled foreign entities.”

In this case, Berkshire Hathaway was the indirect owner of the entities that engaged in the conduct that would have been prohibited if it were engaged in directly by Berkshire Hathaway. 560.215 does not specify that it covers “indirect” ownership relationships in addition to direct ownership relationships, but OFAC has...