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OFAC: Ericsson settlement agreement imparts sanctions compliance lessons

Jaclyn Jaeger | June 12, 2018

In its first enforcement action of 2018, the U.S. Treasury Department’s Office of Foreign Assets Control on June 6 reached a $145,893 settlement agreement with Swedish telecommunications company Ericsson for violating Sudanese sanctions regulations.

According to OFAC, employees of Ericsson AB and its U.S. subsidiary Ericsson Inc. conspired together and with employees of Lebanese telecommunications company BCom Offshore SAL to export and reexport a satellite hub from the United States to Sudan and to export and reexport satellite-related services from the United States to Sudan from late 2011 to mid-2012 in violation of Sudanese sanctions regulations. 

The transaction occurred despite Ericsson’s compliance department explicitly warning that “the supply of such a satellite hub to Sudan would violate Ericsson’s internal policy regarding sanctions compliance,” according to the...

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