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ENFORCEMENT INFORMATION FOR NOVEMBER 27, 2018
Cobham Holdings, Inc. Settles Potential Civil Liability for Apparent Violations of the Ukraine Related Sanctions Regulations: Cobham Holdings, Inc. ("Cobham"), a company based in Arlington, Virginia, on behalf of its former subsidiary, Aeroflex/Metelics, Inc. ("Metelics"), has agreed to pay $87,507 to settle potential civil liability for three apparent violations of the Ukraine Related Sanctions Regulations, 31 C.F.R. part 589 (the URSR).
Specifically, between July 31, 2014 and January 15, 2015, Metelics appears to have violated § 589.201 of the URSR when it sold 3,400 LM 102202-Q-C-301 switch limiters, 6,900 MSW 2061-206 switches, and 20 silicon diode switch limiter samples through distributors in Canada and Russia to a person whose property and interests in property are blocked pursuant to Executive Order 13661 of March 17, 2014, "Blocking Property of Additional Persons Contributing to the Situation in Ukraine" (collectively referred...
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1) Basis for liability: OFAC cites 598.201, which incorporates by reference the prohibitions EO 13661 of which Sec. 4(a) specifies that dealings in blocked property include "the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to [the] order." This would be an uncommon case of an "indirect dealing" with a blocked party, which OFAC clarified is prohibited across all sanctions programs in its 2014 "Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property Are Blocked."
2) Given the amount of factual detail provided relative to amount of the penalty, this enforcement action appears squarely aimed at serving as notice to the regulated community as to OFAC's compliance expectations. There are several novel aspects...