Enforcement Release: Vietnam Beverage Company Limited

Date issued: Oct. 17 2024

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TURBOFAC Commentary (261 words)

Notes

1) The Vietnam Beverage Company Limited case is the latest in a long line of enforcement actions against non-bank, non-U.S. person entities “causing” U.S. person banks to export financial services to North Korea and/or “facilitate” an underlying export transaction as a result of the routing of a USD payment through the U.S. financial system. Compare e.g. Enforcement Release: Mondo TV, S.p.a., Enforcement Release - Godfrey Phillips India Limited and Enforcement Release - Essentra FZE. Here, as is the case with Enforcement Release - Godfrey Phillips India Limited, the basis of the “causing” charge is that the non-U.S. person filed “sought and received” (i.e. issued invoices calling for) payments in USD (the invoices “made specific references to North Korea and the receipt of payment in U.S. dollars”, as distinguishable from invoices that price in USD but...