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ZTE agrees to $1.4B settlement with ‘stringent compliance measures’

Joe Mont | June 7, 2018

Chinese telecom giant ZTE Corp. has agreed to “severe additional penalties and compliance measures” to replace the U.S. Commerce Department’s Bureau of Industry and Security (BIS) denial order that was recently levied on it.

The announcement was made on Thursday by Secretary of Commerce Wilbur Ross.

In March 2017, ZTE agreed to pay a combined civil and criminal penalty of $1.19 billion for violating sanctions laws by sending U.S.-origin items to Iran. The plea agreement also required ZTE to submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor would review and report on ZTE’s export compliance program.

In April, in response to its violation of the terms in the Justice Department settlement, the BIS imposed a “denial of export privileges” against Zhongxing...

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