World ECR | BIS updates key export control enforcement guidance
Home > information > BIS updates key export control enforcement guidance based on new case The U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced on November 12 that it has released an updated version of its enforcement guidance, "Don't Let This Happen to You!", which covers recent export control violations. The revised publication, last updated in July 2024, includes several important new enforcement cases, including: ● The first punishment case of the Disruptive Technology Strike Force ● Criminal case involving Russian procurement network ● A smuggling case involving the use of export-controlled items to stage assassinations ● Administrative action against a semiconductor company for unauthorized shipments to Entity List parties ● Violation of anti-boycott regulations The BIS advises that “exporters are encouraged to read this publication, which provides useful illustrations of the types of conduct that can put companies and universities in trouble.” The guide is designed to help industry and academia understand export control compliance requirements…
World ECR | U.S. Treasury revises Myanmar sanctions rules
Home > information > U.S. Treasury Department Revises Myanmar Sanctions Regulations and Expands Guidance The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a final rule amending the Myanmar Sanctions Regulations to expand guidance and incorporate recent directives. OFAC announced in a Nov. 13 notice that the revised regulations replace the abbreviated version issued in June 2021 and provide additional interpretive guidance, definitions and general permissions. It noted that “the sanctions in Executive Order 14014 do not generally prohibit trade or the provision of banking or other financial services to the State of Myanmar.” Rather, they “apply to the extent that the relevant transactions or services involve being blocked or otherwise prohibited under these sanctions.” Property or property interests otherwise expressly prohibited.” Major updates include: ● Incorporated into “Directive No. 1” issued on October 31, 2023, prohibiting the provision of financial services to Myanmar Oil and Gas Enterprise (“MOGE”) ● New general license for humanitarian activities…
World ECR | Ministry of Finance “substantially” expands foreign investment
Home > information > Treasury to 'significantly' expand foreign investment reviews near military sites The U.S. Department of the Treasury, as chairman of the Committee on Foreign Investment in the United States (CFIUS), announced a final rule that “will significantly expand oversight of foreign real estate transactions near more than 60 military installations in 30 states,” marking a significant increase in national security review powers. The rule adds military installations to an existing list of foreign property transactions facing scrutiny and expands CFIUS's jurisdiction to about 10 existing locations. Treasury Secretary Janet Yellen announced the changes in a Nov. 1 press release, saying, “The Biden-Harris Administration will continue to leverage our robust investment screening tools to advance America’s national security and protect our military installations from external threats.” The expanded oversight includes the creation of new one-mile screening zones around 40 additional military bases, as well as 100-mile radius reviews around 19 additional installations. The rule also expands CFIUS' jurisdiction…
World ECR | Taiwan says machine tools are exported to Russia
Home > information > Taiwan says machine tool exports to Russia "dropped to zero" after controls Taiwan has stopped exporting machine tools to Russia after expanding export controls, the Ministry of Economic Affairs said, in response to a report that ranked Taiwan among Russia's top five machine tool suppliers. The Ministry of Commerce stated that since March 8 this year, it has taken a number of actions, including implementing export controls on 77 machine tool tax items (HS codes). On November 1, China’s Ministry of Industry and Information Technology stated in a Chinese statement that since the implementation of the above-mentioned expanded control measures, the number of Chinese machine tools exported to Russia has dropped to zero. It added that this proved that its "control measures have achieved initial results". A recent report by the British think tank RUSI found that 6.08% of the 2,113 companies supplying machine tools to Russia in 2023 and the first quarter of 2024 were…
World ECR | Nearly 100 criminal cases have been opened in Latvia
Home > information > Latvia to file nearly 100 criminal cases against Russia for sanctions violations in 2024 A senior official at the Latvian State Tax Service (VID) told public broadcaster LTV that 94 criminal cases had been filed this year for violating sanctions against Russia and Belarus. Raimonds Zukuls, deputy director of the tax office, said the figure brings to more than 300 the total number of criminal cases for sanctions violations since the EU imposed restrictions in February 2022 after Russia invaded Ukraine. "The number of cases we are seeing is not decreasing," Zukurs said, noting that more than 2,400 shipments have been intercepted this year, up from 2,170 last year. According to a report by The Baltic Times on October 28, he told the TV station that the products attempted to be exported to Russia and Belarus mainly involved cars, tractors, electrical equipment and appliances, while blocked imports included wood products, animal feed and metal products. "This…
World ECR | OFAC issues new licenses targeting Russia sanctions,
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued five new general licenses (GLs) that modify restrictions on transactions with Russia, including extending the deadline for energy-related transactions to April 30, 2025. Under General License No. 8K, OFAC authorizes "energy-related transactions" with designated Russian banks, including Sberbank, VTB Bank, Alfa-Bank and several others. The license defines energy-related activities as "the extraction, production, refining, liquefaction, gasification, regasification, conversion, concentration, manufacture, transportation or purchase of petroleum" and other energy products. The agency also provides a grace period for certain newly sanctioned entities. OFAC stated in General License No. 110 that "all transactions generally incidental to and necessary for any transaction involving one or more of the following blocked entities are authorized before 12:01 a.m. Eastern Standard Time on December 14, 2024." . Covers several companies, including XH Smart Tech China Co Ltd, Lokesh Machines Limited, Orbit Fintrade LLP and Wuhan Huazhong CNC Co., Ltd. Meanwhile, GL No. 25G authorizes "the…
World ECR | Australia renews legal services license
Home > information > Australia renews license to provide legal services to sanctioned persons According to an October 30 notice from the Department of Foreign Affairs and Trade (DFAT), Australia has issued a new license allowing legal services providers to work with sanctioned individuals and entities, replacing the previous authorization. The new license SAN-2024-00138 replaces SAN-2022-00079 and is valid for two years from the date of issue or revoked under the Autonomous Sanctions Regulations 2011. The authorization covers seven categories of license holders: “Australian persons, including bodies corporate acting as legal service providers and their employees”; Designated Persons or Entities (“DPE”); “Persons acting on behalf of the DPE”; Postal, Courier and litigation services providers; “the Commonwealth and persons appointed or employed under the Public Service Act 1999”; “the Reserve Bank of Australia and staff”; and “financial institutions and their employees”. Permitted activities include "services directly related to the provision of legal advice or legal representation in Australian courts and tribunals"…
World ECR | US condemns Russia’s military actions with North Korea
Home > information > US condemns Russia's military cooperation with North Korea The U.S. State Department condemned Russia's military cooperation with North Korea, saying the Kremlin's alleged training of North Korean soldiers violated multiple U.N. Security Council resolutions and warned Washington could impose sanctions in due course. U.S. Department of Defense spokesman Matthew Miller made the remarks at a press conference on October 29, emphasizing any form of military cooperation between Russia and the Democratic People's Republic of Korea ("North Korea"), especially ballistic missiles or Cooperation in weapons directly violates international sanctions. He said that we believe that Russia’s training of North Korean soldiers involving weapons or related materials is a direct violation of Security Council Resolutions 1718, 1874 and 2270. Reports of deepening ties between Russia and North Korea have drawn close attention from the international community, particularly Russia's alleged training of North Korean soldiers to fight in Ukraine. White House national security spokesman John Kirby said earlier that…
World ECR | US court upholds longer sentences for Chinese tech companies
Home > information > U.S. court upholds longer prison terms for Chinese tech export professor A federal appeals court has upheld the 85-month prison sentence of Yi-Chi Shih, a former UCLA electrical engineering professor convicted of illegally exporting sensitive microwave technology to China. The U.S. Court of Appeals for the Ninth Circuit ruled on Oct. 25 that the district court correctly applied the higher sentencing guidelines in Shi’s case, finding that his actions constituted an evasion of national security controls and not just a regulatory violation. Shi was convicted of violating the International Emergency Economic Powers Act ("IEEPA") by arranging the manufacture and export of specialized microwave circuits to Avionics Systems of China Co., Ltd. ("AVIC"), a company engaged in military weapons development. In its opinion, the court noted that there was no doubt that Shi did business with a Chinese company involved in the missile business. The case centers on Shi's plan to acquire monolithic microwave integrated circuits ("MMICs")…
World ECR | UK sanctions Russian disinformation network
The UK Foreign, Commonwealth and Development Office ("FCDO") has announced new sanctions against three Russian institutions and their leading figures, accusing them of a coordinated disinformation campaign to "undermine and destabilize Ukraine and its democracy." It was announced in a media statement on October 28 that the Social Design Agency (SDA) and its partner companies Structura and ANO DIALOG, which are said to receive direct funding from the Russian government, were targeted in the latest round of sanctions. The FCDO identified these groups as being behind the "Doppelganger" network, which operates at least 120 websites posing as legitimate news and government websites. Sanctions also target three people: SDA founder Ilya Andreevich Gambashidze, SDA CEO Nikolay Aleksandrovich Tupikin (who also owns Structura) and SDA project director Andrey Naumovich Perla. British Foreign Secretary David Lamy said today's sanctions send a clear message: we will not tolerate your lies and interference and we will hunt you down. The SDA has also attempted to…
World ECR | Russia extends travel ban to Australia, New Zealand
Home > information > Russia expands travel ban on Australian and New Zealand citizens On October 29, Russia announced new sanctions on 131 Australian citizens and 9 New Zealand citizens, banning them from entering the country indefinitely, in response to what Moscow called a "collective Russophobia campaign in the West." The Russian Foreign Ministry has expanded its "banned list" targets to include Australian military figures, journalists and public figures, including several Royal Australian Navy officers, defense industry executives and Australian Broadcasting Corporation ("ABC") journalists. Those banned include NIOA Group board members Ken Anderson and Mark Donaldson, as well as ABC television presenter Jeremy Fernandez. The list spans a wide range of fields, from academic figures such as Nick Birbilis, dean of Deakin University's School of Natural Sciences and Engineering, to Gladstone Regional Council mayor Matt Burnett ) and other regional officials. Several executives from defense companies including Electro Optic Systems and SPEE3D were also targeted. In a separate statement, Russia…
World ECR | Court of Appeal: US can sue Türkiye’s Halkbank
A U.S. federal appeals court has ruled that Turkey's state-owned Halkbank can be prosecuted for allegedly evading U.S. sanctions on Iran, rejecting the bank's argument that it is protected by sovereign immunity. The U.S. Court of Appeals for the Second Circuit has ruled that Turkiye Halk Bankasi AS (“Halkbank”) is not immune from prosecution because of its “business activities,” which the court said include alleged involvement in “money laundering and other fraudulent schemes designed to evade sanctions.” U.S. sanctions. In an opinion ruled on October 22, the court wrote that under common law, foreign state-owned enterprises do not enjoy absolute immunity in all criminal cases. While immunity may protect foreign governments and their agencies in the performance of governmental functions, the court held that "there is no basis at common law for concluding that a foreign state-owned company is absolutely immune from prosecution ... for alleged crimes related to its business activities." Behavior." The case centers on what prosecutors describe…
World ECR | Treasury issues new ‘shadow’ advisory warning
Home > information > Treasury issues new advisory warning on 'shadow fleet' risks in maritime oil trade The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has released its latest advisory for the offshore oil industry and related industries, warning of increasing risks from a growing "shadow fleet", particularly those used by Russia to circumvent sanctions and of ships. Leading to potentially unsafe oil trading practices. A consultation published on 21 October with other price cap coalition members (G7, EU, Australia and New Zealand) highlights the growing safety and environmental concerns posed by aging ships operating outside normal regulatory frameworks. "'Shadow' trade has become more visible, often involving actors and goods associated with sanctioned countries and/or individuals, or with other illicit activities," the advisory states, describing A vessel that has generally exceeded its normal life and may continue to operate. Lack of proper security certification. Of particular concern is the possibility that ships in operation are not adequately insured…
World ECR | Panama tightens controls on sanctioned vessels
Home > information > Panama tightens control over sanctioned vessels with new legal framework Panama has established a new legal framework that allows for the immediate deregistration of ships on international sanctions lists, extending its October 1 commitment to crack down on sanctions evasion. Executive Order No. 512, published in the Official Gazette of Panama on October 18, establishes a mechanism for the Panama Maritime Authority (“PMA”) to deregister vessels listed on major international sanctions lists, including those from the U.S. Treasury Department of Foreign Assets Control (“OFAC”), the United Nations Security Council, the European Union and the United Kingdom. This follows Panama's announcement in early October that it would "automatically cancel the registration of any vessel found to be involved in illegal activities or change its flag to evade sanctions," in response to OFAC's designation of seven Panamanian-flagged vessels suspected of being involved in illegal activities in Iran Oil in transit. According to the new decree: The Directorate General…
World ECR | EU Council approves new guidelines
The European Council has approved comprehensive guidelines to help exporters comply with controls on online surveillance technologies that can be used to violate human rights or internal repression. The guidelines, approved at a Council meeting on 15 October, clarify the EU export control framework established under Regulation (EU) 2021/821, with a particular focus on “unlisted” cyber surveillance projects. The document provides a specific definition of cyber surveillance programs, defining them as “dual-use programs specifically designed to conduct covert surveillance of natural persons by monitoring, extracting, collecting, or analyzing data from information and telecommunications systems.” The guidance states that "items used for purely commercial applications, such as billing, marketing, quality service, user satisfaction, or network security, are generally not considered to pose such risks" and excludes these items from the control requirements . The guidance specifically addresses emerging technologies such as facial recognition systems. While there are many legitimate uses for such technology, the document states that "facial and emotion recognition…
World ECR | EU strengthens foreign investment review
Home > information > EU steps up foreign investment scrutiny to boost security The European Union is increasing its efforts to scrutinize foreign direct investments (FDI) that may pose risks to security or public order, according to a report released by the European Commission on October 17. The report shows that "the number of notifications to EU cooperation mechanisms has increased by 18% since the implementation of the EU Framework in 2020", an increase that reflects growing concerns about potential security risks associated with investment in third countries. The document highlights "increasing concerns about the risks that certain investments from third countries may pose to the EU's security or public order and/or to projects and programs of common interest to the EU," the European Commission said in a press release. release. "Of the 488 cases notified in 2023, the vast majority (92%) were closed by the committee within 15 days, while only 8% required so-called Phase 2, which involves a…
World ECR | South Korea, the United States and Japan launch new mechanism
Home > information > South Korea, the US and Japan launch new mechanism to monitor North Korea sanctions South Korea, the United States and Japan formed a multilateral group to oversee sanctions against North Korea after Russia vetoed a United Nations mandate to oversee the sanctions enforcement group. The new group, called the Multilateral Sanctions Monitoring Team (MSMT), will work with partner countries to track and report violations of United Nations sanctions against North Korea, South Korea's Yonhap News Agency reported, citing a joint statement issued by the Ministry of Foreign Affairs. Headquartered in Seoul. Seven months ago, Russia blocked the renewal of the U.N. panel of experts responsible for monitoring sanctions, which expired on April 30. The MSMT will retain much of the UN structure to "monitor and report on violations and evasions of sanctions stipulated in relevant UN Security Council resolutions," Yonhap news agency said, citing a joint statement. The goal of the new mechanism is to assist…
World ECR | India emerges as second largest supplier
Home > information > India becomes Russia’s second largest supplier of restricted technology According to Bloomberg, India has become Russia’s second largest supplier of restricted critical technologies, and nearly one-fifth of sensitive technologies entering the Russian military-industrial complex pass through India. Officials speaking on condition of anonymity in the report said India's exports of restricted items such as microchips, circuits and machine tools exceeded $60 million each in April and May, about double the level in the first few months of the year, before jumping in July to $95 million. , published on October 11. The news agency stated that India is second only to China in exporting key technologies to Russia. Officials reportedly said that with Türkiye and the United Arab Emirates being the two major transshipment points, new transshipment hubs such as India, Malaysia and Thailand have also emerged. Bloomberg noted that India’s role as a transit point has made it the focus of EU and US sanctions…
World ECR | French court acquits Russian captain
Home > information > French court acquits Russian captain of sanctions violation French court acquits ship's captain baltic leaderAfter Russia invaded Ukraine in 2022, he left the port of Rouen on a Russian-flagged ship and was accused of violating EU sanctions. The captain was acquitted by the Rouen Criminal Court on October 10 after facing charges and having his vessel confiscated by French authorities. Prosecutors asked for a fine of 16 million euros and a 10-month suspended sentence on the grounds that the ship was owned by the sanctioned Russian company PSB Leasing. At the heart of the case is the issue of ownership of the vessel at the time it was intercepted. The prosecutor believes that baltic leader It remains under the control of PSB Leasing, a subsidiary of Russia's state-owned Promsvyazbank, which has been the target of European sanctions. However, the captain's defense lawyers argued that the ship had been sold to another company, TransMorFlot, just days before…
World ECR | Oil industry targeted by expanded U.S. sanctions
Home > information > US expands sanctions on Iran to target oil industry After Tehran attacked Israel on October 1, the United States announced expanded sanctions targeting Iran's oil and petrochemical industries. "This action intensifies financial pressure on Iran and limits the regime's ability to earn critical energy revenue, thereby destabilizing the region and attacking U.S. partners and allies," it explained. The U.S. Treasury Department said in a statement on October 11: “The Secretary of the Treasury, in consultation with the Secretary of State, is determining the petroleum and petrochemical sectors of the Iranian economy that are permitted under Section 1(a)(i) of Executive Order (EO) 13902. Treasury targeted broader activities related to trade in Iranian oil and petrochemicals. 'EO 13902 authorizes the identification and imposition of sanctions against key sectors of Iran's economy to prevent the Iranian government from providing financial resources that could be used to fund and support its nuclear program, missile development, terrorism and terrorist proxy networks,…
World ECR | UK Government launches new streamlined service
Home > information > UK Government launches new streamlined export licensing service The UK government has launched an updated service to streamline the application process for businesses seeking a Standard Individual Export License (“SIEL”), “to export strategic goods, software or technology”, and manage their applications and licenses online. The new LITE system allows applicants to: Edit or review applications and view existing SIELs; apply for temporary SIELs for multiple end users; apply for transfer SIELs; and apply for SIELs related to Class 0 Goods, Software and Technology. The government said it is also allowing applications to export goods and provide related services to sanctioned countries including Belarus, Iran, Iraq, Venezuela, Myanmar, North Korea and Russia. Companies that provide independent services, such as professional or business-related services, to these sanctioned countries must apply for a license to provide “sanctioned trade services.” To use the new system, businesses must ensure they have user accounts associated with their organization. For organizations with existing…
World ECR | OFAC Sanctions Sudanese RSF Arms Supplier
Home > information > OFAC Sanctions Sudanese RSF Arms Supplier On October 8, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) initiated an investigation into Algoney Hamdan Daglo Musa (Algoney Hamdan Daglo Musa) pursuant to Executive Order (EO) 14098. ”) imposed sanctions for “leading efforts to provide weapons to continue the war in Sudan.” OFAC said: “The war between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has caused massive destruction, killing tens of thousands, displacing more than 11 million people and leaving millions facing emergency levels of hunger. Argoni is the director of procurement for Médecins Sans Frontières and the brother of Médecins Sans Frontières leader Mohamed Hamdan Daglo (Hemedti). Argoni led Médecins Sans Frontières in procuring weapons and military supplies, thereby prolonging the war. By arming Médecins Sans Frontières, his actions directly contributed to MSF’s ongoing siege of El Fasher, a city of nearly 2 million vulnerable civilians in North Darfur,…
World ECR | UK imposes sanctions over Chemical Weapons Convention violations
Home > information > UK imposes sanctions on Russian troops over Chemical Weapons Convention violations The UK government has imposed sanctions on three Russian military organizations and one individual under its Financial Sanctions: Chemical Weapons Regime. The UK's Foreign and Commonwealth Development Office (FCDO) said in a press release that it had imposed sanctions on "Russian chemical and biological defense (CBR) forces and their commanders... over the deployment of barbaric chemical weapons in Ukraine". It “condemns Russia’s flagrant violations of the Chemical Weapons Convention (CWC) and (urges) Russia to immediately cease all such activities.” The action "continues the foreign secretary's personal mission to counter all malign activity by the Kremlin through our sanctions," the statement said. Those sanctioned are: Radiochemical and Biological Defense Forces of the Ministry of Defense of the Russian Federation Igor Kirillov, Commander of the Radiochemical and Biological Defense Forces of the Ministry of Defense of the Russian Federation 27th Scientific Center of the Russian Ministry of…
World ECR | US State Department rules $3 million in export violations
Home > information > State Department reaches $3 million export violation settlement with Oregon company The U.S. Department of State has reached a $3 million administrative settlement with Oregon-based Precision Castparts Corp ("PCC") to resolve multiple allegations of violations of export control regulations. The agreement involves 24 alleged violations of the Arms Export Control Act (AECA), 22 USC § 2751 et seq., and the International Traffic in Arms Regulations ("ITAR"), 22 CFR Parts 120-130. The settlement was reached "following an extensive compliance review conducted by the Defense Trade Controls Compliance Office of the Department's Bureau of Political-Military Affairs," the Department of Defense said in an Oct. 7 media note. The violations involved "the unauthorized export to expatriate employees from Bhutan, Burundi, El Salvador, Honduras, Mexico and Peru of wax consumed in connection with tooling, specifically wax patterns and mandrels, and the subsequent production of cast blades for use in natural gas." "Turbine engine," it explains. PCC voluntarily disclosed breaches that…
World ECR | EU unveils new sanctions framework
Home > information > EU unveils new sanctions framework targeting Russia's "destabilizing behavior" The EU announced that it has "established a new framework of restrictive measures to respond to Russia's destabilizing behavior abroad", allowing sanctions to be imposed on individuals and entities involved in threatening the EU's fundamental values, security and integrity. The new framework enables the EU to respond to a wide range of hybrid threats, such as: “Disruption of electoral processes and the functioning of democratic institutions; threats and disruptions to economic activity, public interest services or critical infrastructure; the use of coordinated disinformation, foreign information manipulation and Interference (FIMI); malicious cyber activity, exploitation of immigrants, and other destabilizing activities. Under this framework, designated individuals face asset freezes and travel bans, preventing them from entering or transiting EU territory. EU citizens and companies will be prohibited from providing funds to designated persons. The Council's press release on 8 October noted that this decision is consistent with the Security…
World ECR | Syria Cham Wings airline legalized
Home > information > Syrian airline Cham Wings launches legal challenge to EU sanctions The EU's Official Journal published details of a legal challenge brought by Syria-based Cham Wings Airlines LLC against EU sanctions, claiming the council "made a clear error in its assessment of the facts and concluded that the applicant "had benefited from, and provided support to, the Syrian regime" . "' The publication, dated October 7, 2024, revealed that Cham Wings Airlines launched legal proceedings on August 7, 2024 to challenge the restrictive measures imposed by the European Union in response to the current situation in Syria. The case, registered as T-415/24 with the General Court of the EU, specifically targets two EU acts: Council Decision (CFSP) 2024/1510 and Council Implementing Regulation (EU) 2024/1517, both on 27 May 2024 promulgated. In addition to the main allegation of miscarriage of fact, the airline raised two further arguments in its legal challenge: it claimed that the sanctions breached the…
World ECR | BIS updates list of boycott requesters
Home > information > BIS updates list of boycott requesters The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) released the second quarter update to its boycott requester list, which is used to notify “companies, financial institutions, freight forwarders, individuals and other U.S. persons of potential sources of boycotts.” They may receive certain boycott-related requests in the ordinary course of business. The updated list includes 36 new entities "that have been identified in reports received by BIS as making boycott-related requests," the agency said in an Oct. 1 press release. The names of 21 entities were said to have been removed. Being on the requesters list does not restrict U.S. persons from conducting transactions with parties on the list. Rather, it is a notification that these parties are more likely to make reportable boycott-related requests. As required by Section 760.5 of the Export Administration Regulations ("EAR"), each entity on the list has been reported to BIS via the…
World ECR | International Sanctions Target Evil Russian Companies
Home > information > International sanctions target Russian evil group In a coordinated effort, the US, UK and Australia jointly imposed sanctions on members of the Russia-based Evil Corp "cybercrime group", which is reportedly linked to the equally notorious LockBit ransomware group, which is also said to operate in Russia Activity. The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the designation of seven individuals and two entities associated with Evil Corp as part of a broader strategy to combat cyber threats originating from Russia. Additionally, the U.S. Department of Justice released an indictment charging an Evil Corp member with using BitPaymer ransomware to target U.S. victims. Meanwhile, the UK imposed sanctions on 16 members of Evil Corp, underscoring the group's extensive involvement in cybercrime. Those sanctioned include Maksim Yakubets, who Britain says "has long led the group's operations and for which the U.S. Department of Justice has a $5 million reward." Yakubets also allegedly established strong ties…
World ECR | UK government terminates license
Home > information > UK government ends license to provide in-house services to Russia The UK government has announced changes to the Russian sanctions regime relating to the licensing of in-house services. "The government has decided to withdraw licensing consideration in relation to the provision of such services by a UK parent company and its UK subsidiary to its Russian subsidiary," it said. This means that UK companies will no longer be able to apply for licenses to provide intra-company services to their Russian subsidiaries. A notice to exporters ("NTEs") states that from 31 October 2024, the provision of in-house services will no longer be listed in statutory guidance as a licensing consideration that may meet the objectives of the sanctions regime. On 30 September, the Export Control Joint Unit (“ECJU”) and the Department of Business and Trade (“DBT”). It said the decision was taken "following a review of sanctions on professional and business services under Article 54C of the…
World ECR | UK concierge service fined for breaches
Home > information > UK concierge company fined for breaching Ukraine-related sanctions The UK Office for Financial Sanctions Implementation (OFSI) has fined Integral Concierge Services Ltd (ICSL) £15,000 for providing services to designated persons in breach of financial sanctions against Russia. OFSI said in a statement on September 27 that the fine relates to property management services provided by ICSL to designated persons subject to the asset freeze, without disclosing the identities of the sanctioned persons. “Between 2022 and 2023, ICSL made or received 26 payments in relation to services they provided to designated persons, despite knowing or having reasonable grounds to suspect that the payments breached UK financial sanctions,” the report said. The person punished did not report the case to OFSI, but it was the result of an active investigation.” The penalty demonstrates OFSI's clear commitment to pursuing violations of financial sanctions wherever they occur, the release added. OFSI says everyone, from the largest institutions to the smallest,…
World ECR | German authorities arrest couple for illegal behavior
Home > information > German authorities arrest couple for illegally broadcasting Russian TV channel German authorities have arrested a German-Ukrainian couple for illegally broadcasting a Russian TV channel in violation of EU sanctions related to Russia's invasion of Ukraine. "The suspects are a 37-year-old German and his 42-year-old Ukrainian wife," the German Customs Authority ("Zoll") said in a press release. The arrests were allegedly made on September 26. "Both companies are alleged to have made multiple sanctioned Russian TV channels available to their customers through IP TV services since at least early 2022." Zoll said in a statement on its website that the offer "may also Including well-known channels" such as Rossiya 1 and Russia Today ("RT"). Authorities believe the couple had been running the service since early 2022, defying EU sanctions against state-controlled media in Russia. During the raid, officials seized technical equipment, documentary evidence and 40,000 euros in cash. The domain names used by the couple to access…
World ECR | G7 releases first joint guidance on Russia
The U.S. State Department announced on September 24 that the Group of Seven (G7) countries had issued the first-ever joint industry guidance aimed at "preventing the evasion of export controls and sanctions imposed on Russia." The updated guidance outlines the following priority areas: Items with a higher risk of being transferred to Russia; Red flag indicators of potential export controls and/or sanctions evasion; and Industry best practices for addressing these red flags and enhancing due diligence. The goal of the guidance is to protect common high-priority list items from misappropriation, prevent reputational damage and mitigate liability risks, while supporting the continued success of coordinated export controls and sanctions, the BIS said in a press release. The guidance provides industry with strategies for identifying and mitigating risks associated with export control violations. It emphasizes the importance of due diligence and a strong compliance program to detect and prevent illegal activity. BIS said it "encourages industries to implement enhanced screening processes and…
World ECR | US imposes visa restrictions to crack down on business
The U.S. State Department has announced measures to impose additional visa restrictions on multiple individuals "involved in the development or sale of commercial spyware." The operation targeted "individuals who facilitate or financially benefit from the misuse of this technology, which targets journalists, human rights defenders, activists and government officials from around the world," the statement said. Matthew Miller, a spokesman for the department, explained in a September 20 press release: “These restrictions follow recent actions by the U.S. government to combat the misuse of this commercial surveillance technology, including the recent action against Intellexa Supporters of the Spyware Alliance imposed financial sanctions, as well as a U.S.-led joint statement on efforts to combat the proliferation and abuse of commercial spyware. At the same time as his statement, the U.S. State Department also announced that Austria, Estonia, Lithuania and the Netherlands have approved the joint statement, expanding global support from the original 11 countries since the initiative was launched at the…
World ECR | RBI signs agreement to sell Belarus subsidiary
Home > information > Reserve Bank of India signs agreement to sell Belarus subsidiary as part of 'de-risking strategy' Austria-based Raiffeisen Bank International ("RBI") announced the signing of an agreement to sell at a loss an 87.74% stake in its Belarusian subsidiary Priorbank JSC to investors in the United Arab Emirates ("UAE"). "Upon completion, the transaction is expected to have a negative impact on RBI Group's consolidated profits of approximately €300 million," the bank announced in a press release on September 20. "With the completion of this transaction, the RBI will successfully exit the Belarusian market, thereby reducing its operational complexity, in line with its de-risking strategy in Eastern Europe," the bank said. Russia, where it remains operational One of the largest Western banks. Most Western banks have withdrawn since Moscow invaded Ukraine in February 2022. Negotiations to sell Priorbank JSC and its subsidiaries to UAE-based Soven 1 Holding Limited were announced in February. Looking for expert advice on export…
World ECR | EU warns of preparations for more tariffs on Sudan
Home > information > EU warns it is ready to impose more sanctions on Sudan to stop fighting escalating The EU warned that it "stands ready to consider additional sanctions, including against leaders involved in the escalating violence in Fasher", the latest frontline in the war that starts in April 2023. "The EU condemns in the strongest terms the sharp escalation of fighting in El Fasher in southwestern Sudan, instigated by the Rapid Support Forces (RSF) against the Sudanese Armed Forces (SAF)," the EU High Representative said in a statement. Josep Borrell, September 22. The European Union has called on the leader of Armed Forces Without Borders, Mohamed Hamdan Dagalo, and the leader of the Sudanese Armed Forces, Abdel Fattah al-Burhan, to come to the negotiating table and seek a peaceful solution to the conflict. "The EU will not witness another genocide and will continue to cooperate with international accountability mechanisms to hold perpetrators accountable for the serious human rights…
WorldECR | The United States, its allies, and the European Union reaffirm their commitment to sanctions against Iran
Home > information > US, allies and EU reaffirm commitment to Iran sanctions on Mahsa Amini anniversary On the second anniversary of Mahsa Rina Amini's death in Iranian police custody, Western allies and the European Union reiterated their condemnation of human rights violations by the Tehran government and announced plans to continue sanctions and diplomatic pressure. Australia, Canada, New Zealand, the United Kingdom and the United States issued a joint statement stressing their commitment to holding the Iranian government accountable for human rights violations. The September 16 joint statement said: "We will continue to work together to hold the Iranian government accountable and will use all relevant national legal authorities to hold Iranian human rights violators accountable, including through sanctions and visa restrictions." The statement emphasized that the international community is taking action against Iran and condemned the Iranian regime's repression of women and girls, especially criticizing Iran's renewed crackdown on the "Noor" headscarf. Meanwhile, the European Union issued a…
WorldECR | OFAC: Blocking Order Procedures Clarified
Home > information > OFAC: Blocking Order Procedures Are Clarified The final rule issued by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), effective September 17, clarifies procedures for issuing orders freezing or designating specific property or interests in property as blocked, and addresses orders imposing less than a blanket freeze. The new rules update 35 OFAC sanctions regulations, according to a notice published in the Federal Register. “This rule covers 31 CFR Chapter 5, Part 35, and is used to implement OFAC’s authority to freeze property and interests in property of individuals under the International Emergency Economic Powers Act, 50 USC 1701, etc. etc. (IEEPA),” OFAC said in the notice. It explains: "The most common way that OFAC exercises its authority is to designate an individual and place him or her on OFAC's List of Specially Designated Nationals and Blocked Persons (SDN List). Once designated, all property and interests in property of the designee subject to U.S.…
WorldECR | ECJU “LITE”: New online service for export
Home > information > ECJU "LITE": new online service for export licenses The UK Department for Business and Trade (DBT) Export Control Joint Unit (ECJU) has announced the launch of the first service on its new online system, LITE, through which exporters can now apply for a Standard Individual Export License (SIEL). The new 'Apply for SIEL' service is a transition from the current SPIRE system. The notification states: “With some exceptions, any exporter can now register on LITE through the SIEL registration link.” Exporters who participated in the private beta can continue to use their accounts through the new link or any saved links. However, there are certain exceptions for specific exporters or specific types of SIEL applications. The notice advises: "If there are exceptional circumstances, you should apply for SIEL on SPIRE." Detailed information about these exceptions can be found on the GOV.UK SIEL guidance page and on the start page for new services. These pages will be…
WorldECR | BIS updates export regulations
Home > information > U.S. Department of Commerce's Bureau of Industry and Security Updates Export Regulations, Adds New Self-Disclosure and Penalty Guidance The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has finalized a new rule amending the Export Administration Regulations (EAR) to make significant changes to the voluntary disclosure process and administrative enforcement procedures. These changes will take effect on September 16, 2024. The updated rule amends EAR 764.5, which deals with the process for submitting a voluntary self-disclosure (“VSD”). According to the rule, the changes “revise the provisions relating to the voluntary self-disclosure process for exporters who believe they may be in violation of the EAR or any order, license, or authorization issued thereunder.” Additionally, the rule updates Supplement 1 to Part 766 to provide “clear guidance regarding the determination of fees and penalties in settlements of administrative enforcement cases.” These revisions are intended to align with the policies announced in BIS policy memoranda from 2022…
WorldECR | The Hague Court of Appeal sentences suspect for violating
Home > information > Hague Court of Appeal sentences suspect for violating ISIS sanctions The Hague Court of Appeal has dismissed an appeal against a female suspect on multiple terrorism-related charges, including providing funds to two persons designated under EU sanctions against the Islamic State (“IS”) group. The court found the defendants guilty of multiple charges, including aiding and abetting participation in the Islamic State. Regarding the charges relating to financial transactions, the court said the defendant violated the Dutch Sanctions Act of 1977 by "providing resources (money) to two persons" when she transferred a total of 500 euros to two women believed to be members of ISIS. The verdict states that the suspect "shared information in multiple Telegram groups" that supported the Islamic State's media strategy. The verdict finds that by spreading this information, the suspect "deliberately supported the Islamic State's media strategy" and thus contributed to the group's propaganda efforts. The court imposed a comprehensive sentence of 48…
WorldECR | Britain and its allies impose comprehensive sanctions on Iran
The British government, in coordination with the United States and other international partners, announced "significant new measures" against Iran and Russia in response to Iran's alleged transfer of ballistic missiles to Russia for use in the war in Ukraine. The British Foreign Office announced the news on September 10, coinciding with the visit of US Secretary of State Antony Blinken, who said for the first time in London that Russia had obtained new and deadly ballistic missiles from Iran for use in Ukraine. The British Foreign Office said the latest actions against Iran and Russia came after repeated warnings from Britain and its allies, who urged Tehran to stop transferring these deadly weapons to Russia. The UK, along with France and Germany, has currently cancelled its bilateral air services arrangements with Iran, effectively limiting the ability of Iran’s national carrier, Iran Air, to operate in the UK and Europe. British Transport Secretary Louise Hague said: "We will continue to use…
WorldECR | EU ruling allows full confiscation of proceeds
The Court of Justice of the European Union (“CJEU”) has ruled that the EU ban on brokering military equipment to Russia allows for the full confiscation of proceeds, even if the goods never enter the EU. The 10 September judgment also confirmed the Court’s power to interpret EU Common Foreign and Security Policy (“CFSP”) decisions that serve as the basis for national sanctions. The case revolves around the Romanian airline Neves 77 Solutions SRL, which brokered a deal involving 32 radio equipment, 20 of which were manufactured in Russia. Neves received nearly 3 million euros in fees for these services from SFTE Spetstechnoexport, despite being warned in 2019 that their brokering activities were prohibited by EU sanctions due to Russia's actions in Ukraine. The Romanian authorities imposed a fine of 30,000 Romanian lei (about 6,000 euros) and confiscated the funds received. The Romanian court sought clarification from the EU Court of Justice whether the ban applied even if the military…
WorldECR | Commerce Department proposes new rules to monitor advanced
Home > information > Commerce Department proposes new rules to monitor advanced AI capabilities The U.S. Department of Commerce has introduced new mandatory reporting requirements for developers of the most powerful artificial intelligence (“AI”) models and computing clusters, aimed at enhancing national security by assessing defense-related AI capabilities. The proposed rule, announced on September 9 by the U.S. Bureau of Industry and Security (“BIS”), targets AI developers and cloud providers who are at the “forefront” of technological advancement. The new regulations will require AI developers to provide detailed reports on their development activities, cybersecurity measures and the results of red team operations, which BIS explains "involve testing dangerous capabilities, such as the ability to assist in cyberattacks or to lower barriers to entry for non-expert development of chemical, biological, radiological, or nuclear weapons." “Artificial intelligence is advancing rapidly and holds great promise, but also great risks,” said U.S. Secretary of Commerce Gina Raimondo. “This proposed rule will help us keep…
WorldECR | UN humanitarian exemption applies to UK sanctions
Home > information > UN humanitarian exemption applies to UK sanctions Stephen Doughty, a minister of state at the Foreign Office, clarified that UN humanitarian exemptions also apply to the UK sanctions regime. “The exception applies to seven UK UN sanctions regimes and 12 mixed UN and UK autonomous sanctions regimes,” he said in response to a parliamentary question on September 6. He explained: “Our UK system includes humanitarian provisions which include licensing grounds and exceptions to support humanitarian assistance, either for specific entities or through a general licence.” The UN’s humanitarian exemption was adopted in December 2022 by Resolution 2664. Looking for expert advice on export controls or sanctions issues? Subscribe now to receive Regular updates on the latest developments in global trade controls and sanctions Expert advice to help you prepare your business for regulatory changes Gain in-depth knowledge of trade control policies Advising on the impact of U.S. trade controls on non-U.S. businesses International law enforcementNews and…
WorldECR | China strongly condemns new US warning on Hong Kong
Home > information > China strongly condemns new US warning on Hong Kong China has sharply condemned the latest U.S. warning that American businesses will face increased legal and financial risks as Hong Kong increasingly complies with mainland China's national security law, and called on Washington to "remain cautious on issues related to Hong Kong." Foreign Ministry spokesperson Mao Ning said that the so-called "updated proposals for Hong Kong's business environment" concocted by the United States are an unwarranted attack on the Hong Kong National Security Law and a smear on Hong Kong's business environment. She said at a press conference on September 9 that the United States needs to respect facts, respect China's sovereignty and the rule of law in Hong Kong, and remain cautious on issues related to Hong Kong. The warnings, issued by multiple U.S. government agencies, highlighted that Hong Kong’s legal framework is increasingly similar to that of the People’s Republic of China and underscored concerns…
WorldECR | US warns: Russia evades sanctions through new measures
Home > information > US warns: Russia evades sanctions through new overseas branches and subsidiaries The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) has issued an advisory warning foreign jurisdictions and financial institutions that Russia is suspected of attempting to evade international sanctions by establishing new branches and subsidiaries overseas. The warning highlights growing concerns in the United States and the European Union that Russia is using third countries to circumvent sanctions and continue to finance its war in Ukraine. The U.S. Office of Foreign Assets Control said in a Sept. 4 alert that Russia is “redirecting resources throughout its economy and government” to support its military operations, including through the financial sector. The U.S. Office of Foreign Assets Control warned that foreign regulators and financial institutions should be cautious about Russian financial institutions establishing new branches or subsidiaries overseas, or engaging in any transactions with them. It also noted that even if these newly established branches or…
WorldECR | UK government suspends 30 arms export licenses
Home > information > UK suspends 30 arms export licences to Israel The British government said that "following a review of Israel's compliance with international humanitarian law, the United Kingdom has decided to suspend the issuance of arms export licenses to Israel for military operations in Gaza." The statement said, "The UK's strict export licensing criteria stipulate that the government will not issue export licenses if these items could be used to commit or assist serious violations of international humanitarian law. The suspension of exports will not change the UK's firm support for Israel's security, and the UK will continue to review this decision." British Foreign Secretary David Lammy said: "In the face of conflicts like this, it is the UK government's statutory obligation to review export licences." “I regret to inform Parliament that I have received assessments showing that there is a clear risk that certain weapons exported by the UK to Israel could be used to commit or…
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WorldECR | State Department extends comment period
Home > information > U.S. Department of State extends comment period on proposed 'National Defense Services' rule The U.S. Department of State has announced an extension of the public comment period on a proposed rule to revise definitions and controls related to defense services in the International Traffic in Arms Regulations (“ITAR”). The bill was initially published on July 29, 2024, and the original deadline for public comment was September 27, 2024. However, in response to public requests, the department has extended the deadline to October 15, 2024. The proposed rule seeks to update the definition of “defense services” at 22 CFR 120.32 and to make changes to the United States Munitions List (“USML”) at 22 CFR 121.1. The revision is part of a broader effort to modernize the regulatory framework for defense-related exports. The latest State Department notification, released on September 25, explains that the Department of Commerce is making additional changes to the Export Administration Regulations (EAR) to…