December 11, 2019

Comtech continues to respond to OFAC inquiries

Comtech Telecommunications Corp recently updated investors about the status of an ongoing investigation by the US Department of the Treasury, Office of Foreign Assets Control into a Sudan-related business transaction.  The company disclosed the transaction to OFAC after it discovered the matter during a self-assessment of its export transactions in 2014, and, in prior filings, the company revealed that OFAC had requested documentation on multiple occasions.  In its most recent 10-Q filing, Comtech reported that it is in the process of responding to additional questions asked by OFAC.  The company concludes that although US sanctions with respect to Sudan were revoked in 2017,  it is unable to predict whether OFAC will take any enforcement action. If OFAC determines that Comtech violated US trade sanctions, civil and criminal penalties could apply.

Form 10-Q