Italian firm pays U.S. fine for illicit export to Syria

Area S.p.A. agreed to a civil penalty to settle charges that it sold U.S.-origin network monitoring equipment to Syria without authorization.

   The U.S. Commerce Department’s Bureau of Industry and Security on Wednesday said Area S.p.A. of Italy agreed to pay a $100,000 civil penalty to settle charges that it knowingly sold U.S.-origin network monitoring equipment to a Syrian company without the required federal government authorization. 
   In February 2011, Area sold a central monitoring system (CMS) to Syrian Telecommunications Establishment (STE). The CMS is capable of collecting data about web surfing, emails, online chatting and voice-over-Internet protocol conversations. “In the hands of the Syrian government, the system could be used to further the repression of the Syrian people,” BIS said.
   While the sale of the CMS to STE, which contained minimal U.S. content, was not subject to the U.S. Export Administration Regulations, Area subsequently transferred U.S.-origin network monitoring equipment to STE to monitor and test the CMS. This transfer required U.S. government authorization, which was not obtained, BIS said.
   Area purchased the network monitoring equipment, valued at $140,000, from a company in San Mateo, Calif.
   “Area personnel hand-carried the equipment from Italy to Syria and then installed and provided training for STE. Area knew at the time of the transfer that U.S. export regulations prohibited the unlicensed transfer of U.S.-origin items to Syria,” BIS explained.