SAP, a German multinational software corporation, has agreed to pay more than $8 million to the DoJ, US Commerce Department and OFAC over “thousands” of violations spanning 6 years of the Export Administration Regulations and the Iranian Transactions and Sanctions Regulations. The violations occurred in 2 main ways:
SAP has entered into a non-prosecution agreement with the DoJ, under which it has disgorged $5.14 million of “ill-gotten” profits, and has invested $27 million into its compliance programme: (1) implementing GeoIP blocking; (2) deactivating Iranian users of SAP cloud based services; (3) transitioning to automated sanctioned party screening of its CBGs; (4) auditing and suspending SAP partners that sold to Iran-affiliated customers; and (5) hiring US-based export controls staff, and (6) conducting more robust due diligence at the acquisition stage.
This is the first voluntary self-disclosure of export violations to have led to a non-prosecution agreement since the DoJ introduced the “VSD policy” in 2019 to encourage businesses to self-disclose all potential export control and sanctions violations (see post). See press release.
In addition, SAP has entered into a settlement agreement with the Commerce Department under which SAP has agreed to pay $3,290,000, and will complete 3 audits of its export compliance programme over a 3-year period. See press release. OFAC and SAP agreed a settlement of $2,132,174 for 190 non-egregious sanctions violations. The amount payable will be satisfied by SAP’s payments to the DOJ and Commerce Department. See Notice and press release.
Maya Lester QC is a senior barrister (Queen’s Counsel) at Brick Court Chambers with a wide-ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. The legal directories say she is the...See profile for Maya Lester QC >