KNOW YOUR CARGO: REINFORCING BEST PRACTICES TO ENSURE THE SAFE AND COMPLIANT TRANSPORT OF GOODS IN MARITIME AND OTHER FORMS OF TRANSPORTATION
January 19, 2024
On December 11, 2023, the Department of Justice (“DOJ”), Department of Homeland Security’s Homeland Security Investigations, Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and other U.S. agencies issued a joint compliance note detailing common tactics by malicious actors in numerous transportation industries. The note details how various entities in the transportation chain must implement rigorous risk based internal compliance programs in order to avoid illicit conduct. The agencies caution entities to pay particular attention when conducting business in high-risk areas and warn that cargo is susceptible to falsified bills, invoices, and proof of insurance. They also warned of the potential for bad actors to manipulate Automatic Identification Systems (“AIS”) to obfuscate the origin of cargo shipments. To avoid these vulnerabilities, “private sector entities should develop, implement, and adhere to written standardized, risk-based operational compliance policies, procedures, standards of conduct, and safeguards.” The note provides insight into DOJ’s first ever criminal action against a crude oil tanker carrying contraband Iranian oil as well as detailing civil forfeiture actions against a scheme to covertly ship Iranian oil to Venezuela.
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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