Making Sure the Long Arm of U.S. Law Doesn't Come Knocking

Federal Laws and Regulations Related to International Commerce

Cynthia L. Krom, PhD, CPA, CFE

International bankers have become all too familiar with U.S. courtroom procedure lately, primarily due to violations of the U.S. Trading with the Enemy Act (TWEA) and the U.S. International Emergency Economic Powers Act (IEEPA). In December 2009, Credit Suisse AG agreed to a $536 million fine as part of a settlement deal with the U.S. Office of Foreign Asset Control (OFAC). Credit Suisse was accused of intentionally and willfully violating U.S. sanctions against Iran, Sudan, Cuba, Burma, North Korea, Libya, and the former Liberian regime of Charles Taylor, with the great majority of the transactions involving Iran. In addition, in December 2009, Lloyds TSB Bank PLC, agreed to a $217 million settlement for intentionally and systematically violating U.S. sanctions against Iran, Sudan, and Libya. In August 2009, Australia and New Zealand Banking Group Ltd., agreed to a $5.75 million settlement for violating TWEA and IEEPA sanctions against Sudan and Cuba.