Express Courier to Pay $9.4 Million to Settle Allegations of OFAC/BIS Recordkeeping Violations
On August 6, 2009, the Bureau of Industry and Security and the Office of Foreign Assets Control announced that they have entered into a joint settlement agreement with DPWN Holdings (USA), Inc.1 and DHL Express (USA), Inc. (collectively DHL), regarding allegations that DHL unlawfully aided and abetted the illegal exportation of goods to Syria, Iran and Sudan and failed to comply with record keeping requirements of the Export Administration Regulations and OFAC regulations.
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DHL will pay a civil penalty of $9,444,744 and conduct external audits covering exports to Iran, Syria and Sudan from March 2007 through December 2011.
BIS charged that on eight occasions between June 2004 and September 2004, DHL caused, aided and abetted acts prohibited by EAR when it transported items subject to the EAR from U.S. to Syria, and that with regard to 90 exports between May 2004 and November 2004, DHL failed to retain air waybills and other export control documents required to be retained under 15 CFR Part 762.
OFAC charged that DHL violated various OFAC regulations between 2002 and 2006 relating to thousands of shipments to Iran and Sudan. Like DHL's EAR violations, its OFAC violations primarily involve DHL's failure to comply with applicable recordkeeping requirements.
DHL Agrees to External Audits in Addition to Monetary Penalty
In addition to the monetary penalty, DHL will hire an expert on U.S. export controls laws and sanctions regulations for an external audit of DHL transactions to Iran, Sudan and Syria between March 2007 and December 2009. Annual calendar year audits will be conducted in 2010 and 2011. The external auditor will assess DHL's compliance with the EAR and OFAC regulations, including recordkeeping requirements.
1formerly known as DHL Holdings (USA), Inc.
BIS press release (dated 08/06/09) available at http://www.bis.doc.gov/news/2009/bis_press08062009.html.
Treasury press release TG-259 (dated 08/06/09) available at http://www.treas.gov/press/releases/tg259.htm.