What happens when companies ignore red flags, bypass legal advice, and underestimate the reach of U.S. export laws? In this episode, Michael Volkov unpacks two major enforcement actions from the Department of Commerce’s Bureau of Industry and Security (BIS) and the Treasury Department’s Office of Foreign Assets Control (OFAC). These cases serve as cautionary tales for companies navigating complex trade and sanctions landscapes, highlighting the steep costs of compliance failures, even when violations aren't willful.
You’ll hear him discuss:
- BIS’s $4.25 million penalty against Alpha and Omega Semiconductor (AOS) for 15 violations of the Export Administration Regulations (EAR), including unauthorized shipments to Huawei
- How AOS disregarded legal advice and internal compliance warnings while continuing to export EAR99 items from the U.S. to an Entity List company
- The significance of BIS’s finding that even non-willful violations will trigger serious enforcement consequences
- OFAC’s $608,825 settlement with Key Holding LLC over Cuban sanctions violations linked to its Colombian subsidiary, Key Colombia
- How a failure to implement sanctions compliance after acquiring a foreign affiliate exposed Key Holding to U.S. jurisdiction - and liability
- The importance of post-acquisition compliance integration and automated screening in mitigating enforcement risk
- Why these cases mark a return to traditional administrative enforcement priorities and serve as stark reminders of jurisdictional reach
Resources
Michael Volkov on LinkedIn | Twitter
The Volkov Law Group
