Enforcement Release - Alfa Laval Middle East Ltd.

Date issued: Jul. 19 2021

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TURBOFAC Commentary (1175 words)

Notes:

1) BACKGROUND; THEORIES OF LIABILITY

From a legal basis standpoint, the Alfa Laval Middle East Ltd. (AL Middle East) is atypical, but not completely without precedent. AL Middle East was charged with "causing" a U.S. person to (unwittingly) export goods to a third country where AL Middle East knew that Iran was the ultimate destination of those goods. This is a common fact pattern, particularly as it relates to physical goods. See General Note on Causing Violations From Abroad (System Ed. Note).

In addition, AL Middle East was charged with "conspiracy" with respect to the items it caused to be shipped from the U.S., as well as those that were not actually shipped from the U.S. This is, in effect, a "conspiracy to cause" a violation of U.S. sanctions prohibitions, and a "conspiracy to cause" sanctions violations need not actually involve...