Category Archives: Analysis

The case of MCS Technologies – did Iran use a German factory for illicit procurement?

MCS’s factory. Image via MCS-Int.de

Iran’s illicit procurement of goods and technology has been a longstanding hallmark of its nuclear and missile programmes. While procurement agents working for these programmes have regularly been caught attempting to purchase goods and materials from foreign companies, one modus operandi Iran is not known to have undertaken is the purchasing of overseas factories to produce sensitive components for nuclear- or missile-related end-users. Continue reading The case of MCS Technologies – did Iran use a German factory for illicit procurement?

An Architecture for Controlling Nuclear-related Trade with Iran

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Image credit: Mashregh News

The framework agreement for a Joint Comprehensive Plan of Action (JCPoA) reached on 2 April 2015 between Iran and the E3+3 (China, France, Germany, Russia, UK, and US, also known as the P5+1), creates the basis for a solution to the Iran nuclear issue over the next 10-20 years. Continue reading An Architecture for Controlling Nuclear-related Trade with Iran

Illicit Procurement of German and Indian Valves for Iran’s Arak Heavy Water Reactor

  • Iranian company MITEC attempted to procure hundreds of valves for Iran’s Arak heavy water reactor from companies in Germany and India using false front companies in Azerbaijan and Turkey;
  • German authorities issued a licence for some of the exports despite warnings from the US of proliferation risks;
  • There is confusion surrounding whether the Indian government issued a license for the export;
  • Many of the valves and related components were either radiation hardened or bellows-sealed – tell-tale signs of nuclear end uses;
  • An Iranian national, Tanideh, acted as a middle man or broker, facilitating the deal between Iranian entities that had been designated for involvement in Iran’s nuclear program and the valve suppliers;
  • Four individuals involved were found guilty in late 2013, while Tanideh – the middleman – is currently awaiting trial in Turkey.

Continue reading Illicit Procurement of German and Indian Valves for Iran’s Arak Heavy Water Reactor

New Alpha case study: The illicit trade network of Daniel Frosch

In late December of 2014, a 32 year old Austrian named Daniel Frosch appeared in a courtroom in Graz and pleaded guilty to violating Austria’s federal trade laws. For more than a decade prior, Frosch had been a dynamic young international exporter, trading high-tech equipment and technology from bases in Austria, the UAE and the Philippines. Continue reading New Alpha case study: The illicit trade network of Daniel Frosch

Export Control Violation by Japanese Machine Tool Manufacturer

Key Points

    • Directors and senior management should play an active role to ensure that appropriate compliance systems are implemented by their employees to mitigate a wide variety of risks;
    • Extra due-diligence needs to be undertaken to mitigate the risk of diversion to programmes of concern;
    • While China is a huge and growing market for exporters, diversion risks are higher there than in most other countries.

Continue reading Export Control Violation by Japanese Machine Tool Manufacturer