UK Export Penalty Lacks Transparency, Raises Concerns, Law Firm Says
The U.K.'s more than $3.5 million fine of an unnamed British company over illegal exports of military goods (see 2204040020) lacks transparency, U.K. law firm Macfarlanes said in an April 19 post. The U.K.'s enforcement agency hasn't released any information about the violations that led to the fine despite it being the "largest penalty ever for breach of U.K. arms controls," the firm said.
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"Although enforcement of breaches of arms controls are to be welcomed, the lack of information about this significant fine raises some concerns," Macfarlanes said. "Not only has the sanctioned company maintained its anonymity; there is also no guidance from [the U.K.] as to how or why it made the decision to compound the offence rather than pursue criminal prosecution."
The U.K.'s decision could "fit with a wider trend" by economic crime enforcement agencies to push for civil settlements over criminal prosecutions, the firm said. "However, an easy life is not a sufficient reason to fail to pursue criminal proceedings where the facts call for it," the post said. The U.K.'s Export Control Joint Unit didn't respond to a request for comment.
Macfarlanes expects to see "increased scrutiny" around arms control issues, especially because of Russia's invasion of Ukraine. The firm said it plans to monitor how the U.K. "responds to breaches, including its choice of civil or criminal enforcement."