How do you think this went down? "Hey, let's buy this stuff from Iraq. Iraq, Iraq... where have I heard of that before? Hmm, isn't that where those ISIS fellows are? Well, never mind, they probably have nothing to do with it."
There's also the issue of inconsistent punishment. If you or I had done this we'd probably be in prison and even the cleverest yard sale analogy wouldn't save us. These guys get slapped with a fine equivalent to roughly three tenths of a second of profits and walk away clean.