· Loss of “exporting” privileges (usually for 30-90 days) could cripple a university’s normal activities

· Puts federal funding at risk -- for the university and for the individual

· Public relations and media attention -- Most settlements with the Commerce, State or Treasury Departments generally become public.  Court cases are always public!

 

State Department (ITAR)

· Criminal: up to $1M per violation and up to 10 years in prison

· Civil: seizure and forfeiture of articles, revocation of exporting privileges, fines of up to $500K per violation

 

Commerce Department (EAR)

· Criminal: $50K-$1M or five times value of export, whichever is greater, per violation, up to 10 years in prison

· Civil: loss of export privileges, fines $10K-$120K per violation

 

Treasury Department (OFAC)

·  Criminal violations:  up to $1,000,000 per violation, up to 10 years imprisonment

· Civil penalties:  $12,000 to $55,000 fines (depending on applicable law) per violation.  UCLA recently fined for an OFAC violation involving an activity with Iran.

· Violation of specific sanctions laws may add additional penalties

 

PENALTIES FOR VIOLATIONS CAN APPLY TO BOTH INDIVIDUALS INVOLVED IN THE VIOLATION AND THE INSTITUTION!

 

Next:  How Do Export Controls Apply to Researchers?

       Penalty for Non-Compliance

MIT Office of Sponsored Programs