Sanctions and Supply Chains: e.l.f. Cosmetics, Inc. pays nearly USD 1 million to settle North Korea sanctions violations

A US-based cosmetics company, e.l.f. Cosmetics, Inc. (ELF), has reached a USD 996,080 settlement with the US Office of Foreign Assets Control (OFAC) for importing 156 shipments of false eyelash kits containing materials sourced from North Korea in apparent violation of the North Korea Sanctions Regulations. The materials were supplied by two of ELF’s China-based suppliers between 2012 and 2017.  During this period,  ELF’s sanctions compliance program was deemed by OFAC to be either non-existent or inadequate.  OFAC also criticised ELF – a large and commercially sophisticated company – for failing to exercise sufficient supply chain due diligence while sourcing products from a high risk region.  As a result, the company failed to discover that approximately 80% of its false eyelash kits, with a total value of USD 4,427,019.26, contained materials from North Korea. ELF eventually discovered the apparent violations in January 2017 and…

Read more detail on Recent Banking and Finance Law posts –

This entry was posted in Banking and Finance law and tagged , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply