Consequences of a Breach of Law

The key points in brief:

  • A deal which contravenes export control regulations can be null and void by law depending on the applicable national/federal or state laws of contract of the relevant country
  • All participants who commenced action or left out to act although having the obligation to do so can be punished personally with a fine or an imprisonment, depending on the national laws of the prosecution service in charge
  • The entity on whose behalf the action was commenced can face fines or reputational damages for making the case public by the investigating authorities

Explanations:

Within Europe the EU has no competence for Criminal Law, so even in the supranational EU Criminal Law is national law. Therefore the consequences of a breach of law strongly depend on the national/federal or state regulations in criminal law. Nevertheless the consequences described in the bullet points above are in a broader simplified form comparable in the key nations involved in this project.

Although the personal involvement of all individuals which took part in the breach by acting wrongfully or by abstaining from an necessary action carries a personal risk of being fined or even imprisoned for aiding and abetting, the biggest damage is caused for the involved companies as the whole deal can be null and void and the company faces severe punishments.