• OFAC proposes new reporting requirement for rejected transactions
• Agency issues guidance on dealing with Iran
• Additional parties designated under Magnitsky sanctions program
• Careful diligence of...more
8/1/2019
/ Aviation Industry ,
Cross-Border Transactions ,
Economic Sanctions ,
Executive Orders ,
Interim Final Rules (IFR) ,
Iran Sanctions ,
Magnitsky Act ,
Office of Foreign Assets Control (OFAC) ,
Reporting Requirements ,
SDN List ,
Trade Relations ,
Trump Administration ,
Unfair or Deceptive Trade Practices
• The World Bank aggressively pursues sanctions against entities and individuals for misconduct in connection with Bank-funded projects
• Sanctions can lead to cross-debarment by other multilateral development banks and...more
• Company committed multiple apparent violations of U.S. sanctions on North Korea
• Penalty imposed in part because of company’s “non-existent” sanctions compliance program
• Settlement underscores need to address supply...more
2/8/2019
/ China ,
Corporate Counsel ,
Cosmetics ,
Due Diligence ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
Goods or Services ,
Imports ,
North Korea ,
Office of Foreign Assets Control (OFAC) ,
Settlement Agreements ,
Supply Chain
• Russian corporations de-listed through significant specific steps agreed to with OFAC
• Exporter settles for $7.7 million and agrees to comprehensive compliance measures
• OFAC outlines sanctions compliance best...more
1/4/2019
/ Audits ,
Best Practices ,
Certifications ,
Delisting ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Fifty Percent Rule ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Office of Foreign Assets Control (OFAC) ,
Risk Assessment ,
Russia ,
SDN List ,
Settlement Agreements
• Penalties imposed for violations of U.S. sanctions on Russia and Ukraine
• Violations identified during pre-acquisition due diligence on contractor
• Denied persons screening was conducted but missed prohibited...more
12/13/2018
/ Blocked Entities ,
Due Diligence ,
Economic Sanctions ,
Exporters ,
Federal Contractors ,
Foreign Acquisitions ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Policies and Procedures ,
Risk Assessment ,
Russia ,
Sanction Violations ,
Screening Procedures ,
SDN List ,
Ukraine ,
Voluntary Disclosure
• Economic sanctions and export restrictions extended
• Russian investment in United States likely subject to heightened scrutiny
• Diligence on Russia transactions and business partners is essential to ensure...more
9/27/2018
/ CAATSA ,
CBW Act ,
CFIUS ,
Defense Sector ,
Economic Sanctions ,
Executive Orders ,
Export Controls ,
Exports ,
FIRRMA ,
Foreign Investment ,
Foreign Policy ,
General Licenses ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
SDN List ,
Trade Restrictions ,
Trump Administration ,
U.S. Treasury
• Ericsson Caused Violation by Having U.S. Party Ship Equipment to Sudan
• U.S. Employee Facilitated Sudan Business
• OFAC Expects Parties Conducting International Business to Have Robust Compliance Processes
In June...more
• Previously permissible activities must be wound down in 90 or 180 days
• Non-U.S. companies at particular risk of enforcement action
• Only limited guidance issued so far, unclear what authority U.S. companies...more
• 7-year denial order imposed against Chinese telecommunications equipment maker
• Denial order strictly limits business with company
• Action comes as U.S. imposes other trade restrictions on China
On April 16, U.S....more
4/23/2018
/ CFIUS ,
China ,
Economic Sanctions ,
Export Controls ,
Exports ,
Mergers ,
National Security ,
Sanction Violations ,
Semiconductors ,
Telecommunications ,
Trump Administration
Over the past month, we have closely monitored efforts by the U.S. Congress to tie the president’s hands over sanctions on Russia. Today, the president signed the Countering America’s Adversaries Through Sanctions Act...more
On July 20, 2017, the U.S. Treasury Department Office of Foreign Assets Control (OFAC) announced that ExxonMobil (Exxon) must pay a $2 million penalty for violating U.S. sanctions on Russia. On the same day, Exxon responded...more
On June 19, 2017, the U.S. Senate overwhelmingly passed a bill mandating sanctions against Russia and Iran and a 30-day congressional review period should the president attempt to reduce those sanctions....more
It is rare for companies to go to court to fight penalties imposed by the Office of Foreign Assets Control (OFAC) for violations of U.S. sanctions. It is even more rare for a court to make any sort of finding against the...more
6/24/2017
/ Administrative Procedure Act ,
Appeals ,
Arbitrary and Capricious ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Remand ,
Sanction Violations ,
Subpoenas
On June 8, the Office of Foreign Assets Control (OFAC) announced a monetary penalty against American Honda Finance Corporation (American Honda) for alleged violations of the Cuban Assets Control Regulations (CACR), the...more
- Proposed legislation targets current gaps in U.S. financial crime law and enforcement
- Bi-partisan Senate legislation would likely expand compliance obligations for banks and others in financial services industry
-...more
6/9/2017
/ Anti-Money Laundering ,
Anti-Terrorism Financing ,
Banks ,
Economic Sanctions ,
FATF ,
Financial Crimes ,
Financial Services Industry ,
Foreign Banks ,
Office of Foreign Assets Control (OFAC) ,
Patriot Act ,
Proposed Legislation
On March 7, 2017, Chinese telecommunications company, Zhongxing Telecommunications Equipment Corp. (ZTE), signed on to three separate settlement agreements with the United States, agreeing to pay $892 million for violations...more
- Canadian bank pays penalties for U.S. dollar transactions involving Cuba and Iran
- Bank receives Finding of Violation – but no penalty – for violations by European subsidiaries
- Disclosure and cooperation...more
1/30/2017
/ Banks ,
Canada ,
Cuba ,
Cuban Assets Control Regulations (CACR) ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Financial Transactions ,
Foreign Subsidiaries ,
Imports ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement
- Virtually all U.S. sanctions on Sudan lifted effective January 17, 2017
- Sanctions could be permanently lifted in six months
- There continue to be practical challenges to doing business in Sudan...more
1/19/2017
/ Barack Obama ,
Economic Sanctions ,
Executive Orders ,
Export Administration Regulations (EAR) ,
Exports ,
General Licenses ,
New Guidance ,
Office of Foreign Assets Control (OFAC) ,
Revocation ,
State Sponsors of Terrorism ,
Sudan
For those of us who live and breathe U.S. economic sanctions, we are used to most people largely ignoring what goes on in our world. The United States’ recent imposition of new sanctions against Russia, however, was not one...more
1/4/2017
/ Barack Obama ,
CIA ,
Congressional Investigations & Hearings ,
Cyber Attacks ,
Cyber Crimes ,
Economic Sanctions ,
Executive Orders ,
FBI ,
Office of Foreign Assets Control (OFAC) ,
Presidential Elections ,
Public Officials ,
Russia ,
SDN List ,
Trump Administration ,
Vladimir Putin
In what may be a harbinger of things to come, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has issued new guidance regarding what may occur if the United States re-implements economic sanctions...more
Lest U.S. companies think that Cuba and Iran are entirely open for business, a U.S. government settlement announced earlier this month with National Oilwell Varco, Inc. (NOV), a U.S. oilfield services company, will serve as a...more
11/29/2016
/ Civil Monetary Penalty ,
Cuba ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Iran ,
Iran Sanctions ,
Non-Prosecution Agreements ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement ,
UK
With the results in from the U.S. presidential election, companies should begin to consider the potential impact of a Trump presidency on their international business. U.S. economic sanctions were among the hot-button issues...more
11/22/2016
/ Barack Obama ,
Cuba ,
Economic Sanctions ,
Executive Orders ,
Federal Contractors ,
General Licenses ,
Iran ,
Joint Comprehensive Plan of Action (JCPOA) ,
Office of Foreign Assets Control (OFAC) ,
Repeal ,
Russia ,
Trump Administration
Over the past year, the big news for companies doing or considering business in Iran has been the scaling back of U.S. and EU economic sanctions. Many global businesses are now permitted to operate in this once prohibited...more
11/2/2016
/ Certification Requirements ,
Economic Sanctions ,
False Claims Act (FCA) ,
Federal Acquisition Regulations (FAR) ,
General Licenses ,
Iran ,
Iran Sanctions ,
Joint Comprehensive Plan of Action (JCPOA) ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
System For Award Management (SAM)