FRAUD, SANCTIONS, DIVERSION & PROXY BUYER COMPLIANCE POLICY

Tactical Supply Network LLC (“TSN”) maintains a zero-tolerance policy toward fraud, sanctions evasion, export-control violations, unlawful diversion, money laundering, illicit procurement, and the use of straw purchasers, nominees, front companies, shell companies, undisclosed intermediaries, or proxy buyers to conceal the true purchaser, beneficial owner, source of funds, destination, end user, or end use of any product, technology, service, or transaction.

Do not attempt to use TSN as a procurement channel, intermediary, broker, facilitator, or transactional layer for a prohibited, sanctioned, restricted, undisclosed, or otherwise unlawful end user.

TSN operates in highly regulated industries and takes seriously its obligations under United States export-control, sanctions, national-security, anti-money-laundering, anti-fraud, and other applicable laws, as well as applicable laws and regulations of foreign jurisdictions involved in international transactions.

TSN reserves the right to conduct enhanced due diligence on any purchaser, seller, broker, intermediary, financier, consignee, end user, beneficial owner, or other participant in a proposed transaction.

Depending upon the nature of the transaction, TSN may require verification of:

• Identity and corporate existence;
• Beneficial ownership and control;
• Corporate affiliations and related entities;
• Source and destination of funds;
• Banking and financial information;
• Purchaser and consignee;
• Ultimate end user;
• Ultimate end use;
• Final destination;
• Government, military, intelligence, or state-owned affiliations;
• Export, import, transit, and re-export authorizations;
• End-user certificates and other compliance documentation;
• Ownership, possession, location, and authority to sell or transfer products;
• Shipping, warehouse, customs, inspection, and logistics documentation; and
• Any additional information TSN considers reasonably necessary to establish the legitimacy and legality of a proposed transaction.

Refusal or failure to provide requested compliance information, inconsistencies in documentation, inability to independently verify material representations, or other compliance concerns may result in the immediate suspension or termination of a transaction or business relationship.

TSN prohibits any attempt to conceal the identity of the actual purchaser, beneficial owner, ultimate consignee, or ultimate end user through an intermediary, nominee, broker, reseller, shell company, front company, straw purchaser, or other proxy.

This prohibition applies whether the concealment is intended to evade sanctions, export controls, licensing requirements, end-user restrictions, geographic restrictions, financial controls, customs requirements, government scrutiny, or TSN’s own compliance procedures.

TSN will not knowingly participate in a transaction involving a party acting directly or indirectly on behalf of a prohibited or restricted person, entity, organization, government, military, intelligence service, terrorist organization, criminal organization, sanctioned party, or other prohibited or unlawful end user.

The use of multiple companies, jurisdictions, intermediaries, payment channels, financial institutions, transshipment locations, consignees, or purported resellers does not eliminate the obligation to disclose the true beneficial owner, purchaser, source of funds, end user, end use, and ultimate destination.

If you are acting for another party, disclose that party before attempting to transact with TSN.

Transactions may be screened and reviewed for compliance with applicable requirements administered or enforced by, among others:

U.S. Department of the Treasury — Office of Foreign Assets Control (OFAC)

Including applicable economic and trade sanctions programs and restrictions involving sanctioned or blocked persons, entities, governments, jurisdictions, vessels, and other designated parties.

U.S. Department of Commerce — Bureau of Industry and Security (BIS)

Including the Export Administration Regulations (“EAR”), restricted-party requirements, end-use and end-user controls, anti-diversion requirements, and applicable export and re-export licensing requirements.

U.S. Department of State — Directorate of Defense Trade Controls (DDTC)

Including the Arms Export Control Act (“AECA”), International Traffic in Arms Regulations (“ITAR”), U.S. Munitions List requirements, defense articles, defense services, technical data, brokering activities, licensing, and applicable end-user and destination restrictions.

TSN may also conduct screening against applicable U.S. government restricted-party lists, sanctions databases, export-control databases, and other governmental, regulatory, law-enforcement, commercial compliance, and risk databases.

A party’s absence from a particular sanctions or restricted-party list does not automatically make a transaction acceptable.

TSN reserves the right to reject, suspend, or terminate any transaction presenting unacceptable compliance, diversion, reputational, national-security, financial-crime, or legal risk.

TSN will not tolerate fraudulent, fabricated, altered, misleading, or intentionally incomplete documentation or representations.

This includes, without limitation:

• False or fabricated purchase orders;
• Fabricated or altered proof-of-funds documentation;
• False or altered wire-transfer confirmations;
• Fraudulent SWIFT messages or banking documentation;
• False bank statements, bank letters, or banker information;
• False end-user certificates;
• Misrepresented beneficial ownership;
• False or misleading corporate records;
• Fraudulent licenses, permits, or government documents;
• Altered inspection, testing, or certification reports;
• False shipping, customs, warehouse, tank-storage, or logistics documents;
• False representations regarding ownership, possession, or control of goods;
• Misrepresentation of product location, availability, quantity, origin, condition, or title;
• Concealment or misrepresentation of the actual purchaser, seller, broker, intermediary, or beneficiary;
• Misrepresentation of the source, status, transfer, or destination of funds;
• False statements regarding completed payments or financial transactions; or
• False statements regarding the ultimate end user, end use, consignee, destination, or purpose of a transaction.

Providing TSN with fraudulent or materially misleading information may result in immediate suspension or termination of the transaction and preservation of the information, documentation, and communications associated with the matter.

TSN reserves the right to preserve communications, transaction records, banking information, corporate documentation, identification records, shipping information, compliance documentation, electronic records lawfully available to TSN, and other information relating to suspected fraudulent, unlawful, or prohibited activity.

Where circumstances warrant, TSN may provide relevant records and information to its legal counsel, financial institutions, insurers, compliance professionals, regulators, governmental authorities, financial-intelligence authorities, customs authorities, prosecutors, or law-enforcement agencies as permitted or required by applicable law.

Withdrawal from a transaction, termination of negotiations, cancellation of a purchase order, or cessation of communications does not necessarily terminate TSN’s compliance review, record-preservation activities, or ability to make an appropriate referral.

Attempts to defraud TSN, circumvent U.S. or applicable foreign sanctions or export controls, conceal a prohibited or undisclosed end user, unlawfully divert controlled products, launder funds, falsify transaction or banking documentation, or use TSN to facilitate unlawful procurement may be reported or referred to appropriate governmental, regulatory, financial-intelligence, customs, national-security, or law-enforcement authorities.

TSN’s reporting and cooperation are not limited to authorities of the United States.

Depending upon the facts, jurisdictions, parties, financial institutions, products, shipping routes, and destinations involved, TSN may report, refer, disclose information to, or cooperate with appropriate authorities in the United States and any foreign jurisdiction connected to a transaction or suspected unlawful activity.

Such authorities may include, as applicable:

• U.S. Department of the Treasury — Office of Foreign Assets Control (“OFAC”);
• U.S. Department of Commerce — Bureau of Industry and Security (“BIS”), including appropriate enforcement authorities;
• U.S. Department of State — Directorate of Defense Trade Controls (“DDTC”);
• U.S. Department of the Treasury — Financial Crimes Enforcement Network (“FinCEN”), including through applicable financial-institution or law-enforcement channels;
• U.S. Department of Justice (“DOJ”);
• Federal Bureau of Investigation (“FBI”);
• Homeland Security Investigations (“HSI”);
• U.S. Customs and Border Protection (“CBP”);
• U.S. Attorney’s Offices;
• State and local law-enforcement authorities;
• Foreign customs and border-control authorities;
• Foreign export-control and sanctions-enforcement authorities;
• Foreign financial-intelligence units and financial-crime authorities;
• Foreign police, prosecutors, and other law-enforcement authorities;
• Appropriate ministries of defense, commerce, finance, foreign affairs, interior, or other competent governmental authorities where legally appropriate; and
• Appropriate multinational or international law-enforcement and governmental organizations, where applicable.

This may include authorities in the country of origin, manufacture, export, import, transit, transshipment, storage, banking, payment, incorporation, beneficial ownership, end use, or ultimate destination, as circumstances warrant.

TSN reserves the right to preserve and provide relevant transaction records, communications, corporate information, banking information, shipping documentation, end-user information, and other evidence to competent authorities as permitted or required by applicable law.

TSN reserves the right to cooperate fully with lawful investigations concerning suspected fraud, sanctions evasion, unlawful diversion, export-control violations, money laundering, illicit procurement, false documentation, concealed beneficial ownership, prohibited end users, or other potentially criminal or unlawful activity.

The use of a foreign corporation, offshore entity, shell company, nominee, intermediary, broker, reseller, transshipment country, foreign financial institution, cryptocurrency transaction, alternative payment mechanism, or non-U.S. payment channel does not insulate a transaction from scrutiny or eliminate applicable compliance obligations.

Where a transaction touches multiple jurisdictions, TSN may evaluate the transaction under U.S. law and the applicable laws, sanctions regimes, export controls, customs requirements, financial-crime laws, and regulatory requirements of other relevant jurisdictions.

Parties should assume that suspected unlawful conduct involving an international transaction may be referred to competent authorities in more than one country.

TSN will not knowingly structure, route, document, finance, facilitate, or otherwise participate in a transaction designed to circumvent sanctions, export controls, licensing requirements, customs controls, financial restrictions, end-user requirements, or other applicable laws.

Submission of an inquiry, request for quotation, purchase order, letter of intent, proof of funds, end-user certificate, or other documentation does not create any obligation for TSN to enter into or complete a transaction.

TSN may decline, suspend, or terminate a proposed transaction or business relationship at any time when compliance concerns cannot be satisfactorily resolved.

TSN is under no obligation to disclose its internal compliance procedures, screening methodologies, investigative findings, reporting decisions, or communications with governmental, regulatory, or law-enforcement authorities except as required by applicable law.

If your transaction depends upon TSN not discovering who the real purchaser, beneficial owner, source of funds, end user, end-use country, or ultimate destination is, DO NOT CONTACT US.

If you intend to use a nominee, shell company, front company, straw purchaser, reseller, broker, intermediary, transshipment point, financial intermediary, or other proxy to conceal a party to the transaction or circumvent U.S. or applicable foreign sanctions, export controls, licensing requirements, financial restrictions, customs requirements, or end-user restrictions, 

DO NOT CONTACT US.

If you provide TSN with fraudulent banking documents, false wire confirmations, fabricated proof of funds, false end-user documentation, altered government documents, fictitious transaction records, or intentionally misleading transaction information, you should assume that relevant records and communications may be preserved.

Where warranted, such information may be provided to TSN’s legal counsel, financial institutions, regulators, customs authorities, financial-intelligence authorities, prosecutors, national-security authorities, or law-enforcement agencies in the United States and/or other jurisdictions connected with the transaction.

Changing companies, intermediaries, banks, jurisdictions, shipping routes, consignees, payment methods, or transaction structures does not eliminate TSN’s right or obligation to investigate compliance concerns, preserve records, terminate a transaction, or make an appropriate referral.

TSN’s legal, regulatory, export-control, sanctions, financial-crime, and national-security compliance obligations take precedence over completing any transaction.

WE WOULD RATHER LOSE A TRANSACTION THAN FACILITATE AN UNLAWFUL ONE.

BE GUIDED ACCORDINGLY.