Trade compliance
Encyclopedia
One of the least known, but very important components of international trade is checking foreign business partners and contacts against government compliance lists. Governments and organizations, require importers and exporters to comply to these lists.
If an exporter or importer does not remain in compliance, the consequences can be steep. For example, doing business with a company on the OFACs list, one of the lists importers and exporters must comply with, can result in the following consequences :
"The fines for violations can be substantial. Depending on the program, criminal penalties can include fines ranging from $50,000 to $10,000,000 and imprisonment ranging from 10 to 30 years for willful violations. Depending on the program, civil penalties range from $250,000 or twice the amount of each underlying transaction to $1,075,000 for each violation. "
OFACs FAQs, 16 November 2007
Other compliance lists also have strict consequences.
If an exporter or importer does not remain in compliance, the consequences can be steep. For example, doing business with a company on the OFACs list, one of the lists importers and exporters must comply with, can result in the following consequences :
"The fines for violations can be substantial. Depending on the program, criminal penalties can include fines ranging from $50,000 to $10,000,000 and imprisonment ranging from 10 to 30 years for willful violations. Depending on the program, civil penalties range from $250,000 or twice the amount of each underlying transaction to $1,075,000 for each violation. "
OFACs FAQs, 16 November 2007
Other compliance lists also have strict consequences.