Category Archives: Analysis

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