WASHINGTON- The Commerce Department today imposed civil penalties totaling $10,000 on Merrill Lynch, Pierce, Fenner & Smith Incorporated located in New York City, and Merrill Lynch Asset Management, Inc. located in Plainsboro, New Jersey for alleged violations of the antiboycott provisions of the Export Administration Act and Regulations, Frank W. Deliberti, acting assistant secretary for Export Enforcement, announced.
The Department alleged that between January 1991 and September 1991 these Merrill Lynch entities agreed not to do business with companies on the Arab boycott list. The Department also alleged that Merrill Lynch Asset Management furnished information about its proposed business relations with companies on the Arab boycott lists. Additionally, each company failed to report in a timely manner its receipt of boycott requests, as required by the Regulations.
The companies, subsidiaries of Merrill Lynch & Co., voluntarily disclosed the violations to the Department's Office of Antiboycott Compliance. While the companies neither admitted nor denied the allegations, they agreed to pay the fine to settle the cases.
The antiboycott provisions prohibit U.S. individuals and companies from furnishing information about any person's business relationships with or in a boycotted country, or with companies or individuals believed to be restricted from doing business with or in one or more countries that participate in the Arab boycott of Israel.
The antiboycott provisions also prohibit U.S. individuals and companies from refusing and agreeing to refuse to do business with or in a boycotted country, with any business concern organized under the laws of a boycotted country, with any national or resident of a boycotted country, or with any other person, pursuant to an agreement with, or a requirement or request from or on behalf of a boycotting country. U.S. individuals and companies are also 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.