Fokker Services reaches agreement with US authorities to pay $21 million cash settlement related to transactions and customers in US sanctioned countries

Hoofddorp, Netherlands, 12-6-2014 — /EuropaWire/ — Fokker Services (FS) announced it has entered into agreements with the US Department of Justice (DOJ), US Department of Treasury Office of Foreign Assets Control (OFAC) and the US Department of Commerce Bureau of Industry and Security (BIS) relating to historical conduct involving transactions and customers in US sanctioned countries (Iran, Sudan and Burma). FS agreed to pay a cash settlement amount of $21 million (€15.5 million at today’s exchange rate), which includes $10.5 million to DOJ as part of a deferred prosecution agreement and $10.5 million to BIS and OFAC. The DOJ settlement is pending review by the Federal District Court in Washington, D.C. The BIS settlement is effective once approved by the Assistant Secretary of Commerce for Export Enforcement.

FS identified these historical transactions and disclosed them to the US authorities in 2010. The company immediately took appropriate remedial action and cooperated fully with the investigations of the US authorities.  In its press release of 3 February 2014 FS already announced it was finalizing its settlement discussions with the US authorities.

FS identified transactions related to the sale of maintenance parts and repairs for Fokker aircraft, to which trade restrictions of the United States applied. FS undertook an extensive internal investigation covering the period from 2005 – 2010 and immediately reported the investigation findings to the US authorities’. A comprehensive set of remedial actions were undertaken, including a disciplinary review of the involved employees. Since 2010 FS has ceased all business with sanctioned countries and has implemented a new compliance program that has proven to be effective over the recent years.

FS sincerely regrets the historic conduct. The current management of FS is firmly committed to compliance.

Key elements of the program that were previously implemented at FS and which will continue to be enforced going forward include:

• Clear set of policies and procedures, based upon guidelines from BIS and OFAC;
• Independent position of the compliance function;
• Periodic compliance training of all employees;
• Contractual language preventing exports contrary to applicable laws;
• End user statement signed by all customers

About Fokker Services
Fokker Services is part of Fokker Technologies. The company supplies integrated maintenance services, logistics programs and parts availability programs to aircraft owners and operators. Fokker Services operates from three facilities in the Netherlands; Woensdrecht, Oude Meer and Hoofddorp and internationally from facilities in Singapore and the USA.

For more information, please contact:

Hill+Knowlton Strategies, Amsterdam

Frans van der Grint,

frans.vandergrint@hkstrategies.com

D: +31(0) 20 404 4 707