WASHINGTON -- The Commerce Department has imposed a $36,000 civil pen alty on the New York Office of Bank Saderat Iran ("BSI"), an Irananian bank which had operated in the U.S., for alleged violations of the antiboycott provisions of the Export Administration Regulations, Frank Deliberti, acting assistant secretary for Export Enforcement, announced today.
The Department alleged that on two occasions between November 1991 and April 1992, BSI implemented two letters of credit from Dubai which required certification that goods purchased under the credits were not of Israeli origin. The Department further alleged that, during the same time period, BSI twice certified that no Israeli-origin goods were shipped. Both activities are prohibited by the antiboycott provisions of the Regulations. Also, the Department alleged that BSI failed, on four occasions, to report to the Department its receipt of boycott-related requests from Dubai. While neither admitting nor denying the alleged violations, BSI has agreed to the terms of the settlement.
The Department agreed to suspend payment of the $36,000 civil penalty for three years. Payment of the civil penalty will be waived, provided that BSI does not violate the Export Administration Act or Regulations, or fail to meet other terms and conditions of the Department's order imposing the civil penalty.
The antiboycott provisions of the Export Administration Act and Regulations apply to foreign boycotts fostered or imposed against a country which is friendly to the United States and which is not itself the object of any form of boycott under United States law or regulation.
These provisions prohibit U.S. individuals and companies (including banks) from paying, negotiating or otherwise implementing letters of credit containing boycott-based requirements. The antiboycott provisions also prohibit U.S. individuals and companies from furnishing information about any person's business relationships: 1) with or in a boycotted country; 2) with any business concern organized under the laws of a boycotted country; 3) with any national or resident of a boycotted country; or 4) with any person known or believed to be restricted from doing business with or in one or more countries that participate in an unsanctioned foreign boycott, such as the Arab League boycott of Israel. Finally, U.S. companies and individuals are required to report to the Department, in a timely manner, each boycott-related request they receive.
In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.