New York Bank Settles Allegations of Antiboycott Violations

WASHINGTON – The U.S. Department of Commerce today announced that Gulf International Bank (New York), the U S branch of Gulf International Bank, headquartered in Bahrain, has agreed to pay a civil penalty of $49,850 to settle allegations that it violated the antiboycott provisions of the Export Administration Regulations (EAR). 

“The Department of Commerce will continue to aggressively enforce its regulations prohibiting U.S. companies from taking any action in support of restrictive trade practices or unsanctioned boycotts,” Kevin Delli-Colli, Acting Assistant Secretary of Commerce for Export Enforcement, said. 

“I encourage any company with boycott issues to review the Antiboycott Compliance Module of BIS’s Online Training Room at http://www.bis.doc.gov/seminarsandtraining/seminar-training.htm and to contact the OAC Advice Line with specific questions,” he added.

The Commerce Department’s Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance, alleged that, on eight occasions during the years 2002 through 2004, the Bank, in connection with transactions involving the sale and transfer of goods from the United States to Syria, furnished prohibited information about another person’s business relationship with a company known or believed to be restricted from having any business relationship with Syria or in another boycotting country.

BIS also alleged that the Bank, on seventeen occasions during the same time frame, failed to report to the Department of Commerce its receipt of a request to engage in a restrictive trade practice or boycott and, on one occasion, failed to maintain records, as required by the EAR.

The antiboycott provisions of the EAR prohibit U.S. persons from complying with certain requirements of unsanctioned foreign boycotts, including furnishing information about business relationships with or in a boycotted country or with blacklisted persons.  In addition, the EAR requires that persons report their receipt of certain boycott requests to the Department of Commerce.

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