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…
WorldECR | OFSI Updates Russian Diamond Import Guidelines
Home > information > OFSI Updates Russian Diamond Import Guidelines The UK Office of Financial Sanctions Implementation (“OFSI”) has updated its guidance on Russian diamond imports. It is now provided that, under section 46Z16R, “A license may be granted for the import of certain Russian diamonds processed in a third country if the import license relates to the fulfilment of obligations under a contract concluded before March 1, 2024, and the weight of such diamonds is greater than or equal to 1 carat. A license may be granted for the import of certain Russian diamonds processed in a third country if the import license relates to the fulfilment of obligations under a contract concluded before September 1, 2024, and the weight of such diamonds is greater than or equal to 0.5 carats but less than 1 carat.” For more guidance, see: Looking for expert advice on export controls or sanctions issues? Subscribe now to receive Regular updates on the latest…
WorldECR | UK Labour Party colleagues call for second election
Home > information > UK Labour MPs call for secondary sanctions on China to support Russia A Labour peer in the UK House of Lords noted that "secondary sanctions could have a huge impact on China" and called for pressure on Beijing to support Russia. Allen West said during a debate on Ukraine in the House of Lords on September 3, “There is no doubt that from an economic point of view, Russia can continue to maintain the status quo because of China’s support.” "Secondary sanctions would have a huge impact on China because China has a very low ratio of production to consumption. Are we looking closely at these secondary sanctions against China to see if there is some impact on capital flows?" he asked Jenny Chapman, deputy foreign affairs minister. In response to a question about whether secondary sanctions could be imposed on countries that assist Russia’s so-called “shadow fleet” of tankers in evading sanctions, Chapman noted that…
WorldECR | EU Court of Justice: Notarization services are not legal advice
Home > information > EU Court of Justice: Notarization services are not legal advice and do not violate sanctions against Russia The European Court of Justice (“ECJ”) has stated in a judgment in a case that “a notary does not violate sanctions against Russia when he or she certifies the sale of a property owned by an unlisted Russian company.” In that case, a notary in Berlin refused to certify the sale of an apartment to a German couple on the grounds that the owner of the apartment was a company registered in Russia. “By accreditation, notaries do not provide legal advice services, but act independently and impartially within the scope of the functions entrusted to them by the state,” the court said in a Sept. 5 press release. The case went to court after the notary argued that it could not be ruled out that the certification violated the prohibition on providing legal advisory services to legal persons established…
WorldECR | BIS says voluntary disclosures are “significant”
Home > information > U.S. Commerce Department says voluntary disclosures "significantly reduce" anti-boycott penalties The U.S. Bureau of Industry and Security (“US BIS”) announced on August 26 that it has imposed a $44,750 civil penalty on Streamlight, Inc. (Streamlight), a global manufacturer of portable lighting products located in Eagleville, Pennsylvania, to resolve three alleged violations of the anti-boycott provisions of the Export Administration Regulations (EAR). The court said Streamlight "voluntarily disclosed the conduct to BIS, cooperated with the BIS Office of Antiboycott Compliance (OAC) in its investigation, and implemented remedial measures after discovering the conduct, all of which resulted in a significant reduction in the penalty." BIS said a proposed charging letter alleges Streamlight “violated the antiboycott provisions of the EAR by providing information about business relationships with boycotted countries or blacklisted persons without reporting requests for restrictive trade practices or foreign boycotts against countries friendly to the United States,” specifically that the company “participated in a trade show in…
WorldECR | UN Human Rights Office on China:
Home > information > UN Human Rights Office: China: 'Xinjiang issues remain' The Office of the United Nations High Commissioner for Human Rights (UN Human Rights) said that after its visit to Xinjiang and engagement with local authorities, it learned that China "still has many problematic laws and policies" regarding Xinjiang. The visit was to coincide with the OHCHR’s update on the human rights situation in the Xinjiang Uyghur Autonomous Region in 2022. Since then, the OHCHR has stated that “The High Commissioner and the Office engaged in detailed exchanges with the Chinese government on a range of key issues, such as counter-terrorism laws and policies, criminal justice, other policies affecting the human rights of ethnic and religious minorities (including in the Xinjiang Uyghur Autonomous Region and the Tibet Autonomous Region), equality and non-discrimination, and national security and human rights issues in the Hong Kong Special Administrative Region.” In its update, it said, “We once again call on the authorities…
WorldECR | Hungarian national arrested for export control violations
Home > information > Hungarian national arrested on export control charges upon arrival in U.S. The U.S. Department of Justice announced charges against Hungarian national Bence Horvath for "violating U.S. export controls against Russia, including conspiring with others to illegally export U.S.-origin radio communications technology to Russian government end users without a license." Horvath was reportedly arrested upon arriving at San Francisco International Airport on August 23rd on a charge of “one count of conspiracy to violate the Export Control Reform Act of 2018 (ECRA)”. “Hovat and others managed a transnational procurement network that contracted directly with various Russian government entities and participated in large-scale projects, such as the construction of a radio communications system in the Kursk region on the Russian/Ukrainian border,” the court document states. “The indictment alleges that Horvat personally arranged for the purchase of U.S. radio communications technology and smuggled that technology to Russian government end users through a network of affiliates located in Spain, Serbia,…
WorldECR | OFSI publishes report on “Ownership and
Home > information > OFSI publishes guidance on “ownership and control” On 20 August, the UK Office of Financial Sanctions Implementation (“OFSI”) published new guidance on the “ownership and control” approach, which aims to “ensure that sanctions cannot be easily circumvented”. It explains: “An entity is owned or controlled, directly or indirectly, by another person if: The person directly or indirectly holds more than 50% of the shares or voting rights in an entity that person has the power (directly or indirectly) to appoint or remove a majority of the board of directors of that entity, or The person can reasonably be expected to ensure that the affairs of the entity are conducted in accordance with his or her wishes For example, this may include: Appoint, by exercising voting rights only, a majority of the members of the entity’s executive, management or supervisory bodies who served in the current and previous fiscal years A shareholder or member who alone controls…
WorldECR | US imposes sanctions on former Haitian president
Home > information > US imposes sanctions on former Haitian president for corruption, drug trafficking The United States has imposed sanctions on former Haitian President Michel Joseph Martelly for corruption and involvement in drug trafficking, saying he "abused his influence to facilitate the trafficking of dangerous drugs, including cocaine, into the United States." He also “engaged in money laundering, working with Haitian drug traffickers, and financing multiple Haitian gangs,” the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) said on August 20. His name was added to the Non-SDN Menu Sanctions List (NS-MBS List). “Today’s action against Martelly highlights the significant and destabilizing role he and other corrupt political elites have played in exacerbating Haiti’s ongoing crisis,” said Bradley Smith, Acting Under Secretary of the Treasury. “The United States, along with our international partners, is committed to targeting those who facilitate drug trafficking, corruption, and other illegal activities that fuel horrific gang violence and political instability.” The sanctions include…
WorldECR | DHS updates Uyghur forced labor entity list
Home > information > DHS updates Uyghur forced labor entity list The U.S. Department of Homeland Security (“DHS”) has released an updated list of entities under the Uyghur Forced Labor Prevention Act (“UFLPA”) that include five new entities implicated in forced labor practices related to China’s Xinjiang Uyghur Autonomous Region (“XUAR”). A recent update posted to the Department of Homeland Security’s Forced Labor Enforcement Task Force (FLETF) website added two entities that were identified as working with the XUAR government to recruit, transport, transfer, harbor, or receive forced labor from Uyghurs, Kazakhs, Kyrgyz, or other persecuted groups. Two additional entities were added because they source materials from the XUAR, specifically through government labor programs related to forced labor, such as “poverty alleviation” or “counterpart support” programs. A fifth entity was identified as an entity in both of these categories. The newly recognized companies include Xinjiang Tengxiang Magnesium Products Co., Ltd., Century Sunshine Group Holdings Co., Ltd., and Rare Earth Magnesium…
WorldECR | Switzerland adopts EU sanctions against Russia
Home > information > Switzerland adopts EU sanctions against Russia, giving companies more time to withdraw investments The Swiss Federal Council has decided to impose certain trade and economic restrictions on Russia based on its decision on the 14th.day The European Union adopted a package of sanctions at the end of June and also extended the deadline for Swiss companies to withdraw their investments from Russia. The measures “include clarifying the ban on Russian diamonds and bringing it into line with international standards,” the Swiss State Secretariat for Economic Affairs (SECO) said in a notice published on August 21. It added that “the Federal Council has also extended the deadline for the exemption permit regarding divestment from Russia. The aim is to ensure that Swiss companies can legally terminate their business activities in Russia.” The amendments are due to come into force on August 27, but as of July 9, Swiss authorities had already imposed sanctions on an additional 69…
WorldECR | UK OGEL follows US certification
Home > information > UK OGEL follows US certification The UK has issued an Open General License (“OGEL”) to the AUKUS countries, with the three partners in the military agreement ready to start licence-free trade in sensitive military items for the first time before a September 1 deadline. The new OGEL, published on August 16 and due to come into force early next month, is designed to “allow the export of dual-use items or military products, software or technology to Australia, the United States and the United Kingdom, and the trade of military products between Australia, the United States and the United Kingdom,” the UK government said. “This includes the re-export of goods, software or technology to or from an approved destination, even if they are incorporated into other products.” The license follows U.S. action last week, when the State Department notified Congress that AUKUS partners Australia and the United Kingdom now have export controls comparable to those of the…
WorldECR | Kazakhstan says it will consider its own interests
Home > information > Kazakhstan says it will consider its own interests first when enforcing sanctions against Russia Kazakh Deputy Prime Minister Serik Zhumangarin said Western sanctions against Russia meant huge losses for Kazakh producers, saying Kazakhstan would not "blindly comply with sanctions" without considering the impact on its own economy. In an interview with Bloomberg on August 16, he said Kazakhstan will continue to abide by the sanctions but will pursue a balancing policy to minimize the impact of the sanctions on the domestic market. Meanwhile, the Central Asia Times said Zhumangarin "stressed that Western sanctions against Russia have disproportionately harmed the country." He said Kazakh producers are suffering huge losses, while their former Russian customers have shifted their business to suppliers within Russia and "continue to prosper." Since Western countries imposed sanctions on Moscow, Kazakhstan, which shares a 7,000-kilometer border with Russia, has been caught in a dilemma: on the one hand, Russia needs to continue its secret…
WorldECR | US welcomes adoption of Milestones
Home > information > US welcomes adoption of 'landmark' cybercrime convention On August 9, the U.S. State Department welcomed the adoption of the United Nations Convention against Cybercrime by the Ad Hoc Committee on Cybercrime. The statement said the agreement "expands the global fight against cybercrime, one of the most pervasive challenges of our time, affecting communities around the world." In a statement, the United Nations said: “After three years of work, the Committee established by the United Nations General Assembly to negotiate a new convention on cybercrime today agreed on a draft text. The draft convention is expected to be adopted by the General Assembly later this year, making it the first legally binding global instrument on cybercrime. “This achievement is the culmination of five years of hard work by UN Member States, with the participation of civil society, academic institutions and the private sector.” Ghada Wali, Executive Director of the Office of Drugs and Crime, said the finalization…
WorldECR | Biden writes to Congress approving AUKUS NNP
In a letter to the US Congress, President Joe Biden handed over the text of an agreement between the UK, the US and Australia on “naval nuclear propulsion-related cooperation” for his presidential approval. The letter states that on November 22, 2021, the AUKUS partners signed the 'Navy Nuclear Propulsion Information Exchange Agreement (ENNPIA), which allows the three parties to communicate and exchange Naval Nuclear Propulsion Information (NNPI), including certain restricted data (RD), in order to consult on the best path.' The ENNPIA came into force on February 8, 2022, and will remain in effect until December 31, 2025, unless superseded by a subsequent agreement. The new agreement, which will replace CERN, "will allow for continued communication and exchange of non-nuclear infrastructure (NNPI), including certain research and development, and will expand intergovernmental cooperation by allowing the transfer of naval nuclear propulsion plants for conventionally armed nuclear-powered submarines, including their components and spare parts, and other related equipment." It also "permits the…
WorldECR | Extradition of Bulgarian national accused
Home > information > Extradition of Bulgarian national accused of illegally exporting U.S. technology to Russia A Bulgarian national extradited from Greece faces U.S. indictment for allegedly “purchasing sensitive radiation-hardened integrated circuits from the United States and illegally exporting them to Russia via Bulgaria without obtaining the required U.S. government licenses in violation of the International Emergency Economic Powers Act (IEEPA) and the Export Control Reform Act (ECRA).” The U.S. Department of Justice said on August 12 that the indictment alleges that between at least May 2014 and May 2018, Milan Dimitrov, 50, and two accomplices used the Bulgarian company Multi-Technology Integration Group EEOD (“MTIG”) to receive export-controlled items from the United States and transship them to Russia without obtaining the required licenses. The parts were shipped to Bulgaria in 2015, the company said, and MTIG forwarded them to the Russian company shortly afterward, paying more than $1 million for them. Dimitrov is charged with two counts of violating IEEPA,…
WorldECR | On anniversary of election flaws, OFAC steps up efforts
Home > information > OFAC steps up sanctions on Belarus on anniversary of flawed election On August 9, on the anniversary of what the U.S. government called the fraudulent August 2020 Belarusian presidential election, in which Lukashenko "unleashed a brutal crackdown on peaceful protesters, democratic organizations, and journalists to illegally retain power," the U.S. Office of Foreign Assets Control (OFAC) said it was taking action against "19 individuals, 14 entities, and one aircraft" under Executive Order 14038 related to Belarus. "This action targets individuals who support Russia's war in Ukraine by producing military resources and transshipping goods to Russia, evading sanctions on behalf of Belarusian defense entities, and generating revenue for Belarusian oligarchs in Alexander Lukashenko's inner circle," the statement said. "OFAC is also designating five of these targets - three individuals and two entities - under EO 14024 related to Russia." It also noted that the measures were “made more severe by actions taken earlier this week by the…
WorldECR | The threat of renewed US sanctions looms
Home > information > Venezuela election results disputed, threat of renewed U.S. sanctions looms The U.S. government said it was "gravely concerned" about the results of Venezuela's presidential election and would continue to evaluate its sanctions policy toward Venezuela. Venezuela's incumbent President Nicolas Maduro and his political opponents both claimed victory amid allegations of fraud. The National Electoral Council, which is loyal to Maduro's ruling United Socialist Party, formally declared him the winner of the July 28 election, but opposition candidate Edmundo González also claimed victory. "The Venezuelan people and the whole world know what happened," Gonzalez said after Maduro formally declared victory. Maduro's victory means his government, which is not recognized by the United States, will serve a third six-year term. In Washington, two unnamed “senior officials” briefing reporters on the vote via a conference call the day after the vote said that “Maduro representatives have stripped any credibility of the so-called election results they announced.” "We have serious…
WorldECR | Russia will open up crypto payments to the international community
Home > information > To circumvent sanctions, Russia will open up international trade to crypto payments Russia’s central bank has announced that local businesses will be allowed to use cryptocurrencies for international trade, as Moscow tries to find ways around Western sanctions that are hampering payments for imports and exports. In addition, the State Duma passed a new law allowing foreign banks to open branches in Russia, not just subsidiaries. “Russian exporters and importers will be allowed to use cryptocurrencies in cross-border settlements under foreign trade agreements, but only within the Experimental Legal Regime (ELR), which is being piloted,” the bank said in a press release on July 30. “As provided for by the law, the ELR scheme will be approved by the Bank of Russia in consultation with relevant agencies. The ELR is expected to provide for special procedures for cryptocurrency settlements, with restrictions on the number of participants and duration,” it added. The bank also noted that the…
WorldECR | China imposes new export controls on “dual-use” products
Home > information > China imposes new export controls on “dual-use” parts for military and civilian drones China has imposed new export controls on a range of military and civilian drone-related equipment, with the Ministry of Commerce saying items with certain characteristics "may not be exported without permission" and violators will be punished. The new controls announced on July 31, particularly on dual-use items, follow months of sanctions imposed by the United States on Chinese companies accused of supplying drone parts to Iran. Iran’s unmanned aerial vehicles (UAVs) are reportedly being used by Russia in its war in Ukraine. The sanctions include new measures targeting companies and individuals in mainland China and Hong Kong (see today’s first article). In a Chinese-translated statement, the Ministry of Commerce said that in order to safeguard national security and interests, with the approval of the State Council and the Central Military Commission, it was decided to adjust the export control measures on some drones…
WorldECR | UK: NCA seizes £780,000 from Russians
Home > information > UK: NCA seizes record £780,000 from Russian oligarch In the first action of its kind in the UK, the National Crime Agency (NCA) has secured the seizure of sanctioned funds held in the UK by Russian oligarch Petr Aven. The NCA said in a statement on July 29 that the 780,000 pounds frozen since 2022 were recovered due to sanctions against Avin, the former president of Russia's largest commercial bank. The NCA argued that although the funds were not held in Awen's name, they were held for his benefit. The funds were initially frozen after the British government imposed sanctions on him for supporting Russia. The NCA’s investigation revealed that the attempted transfer of these funds, as well as transactions carried out by Aven’s estate manager Stephen Gater after March 15, 2022, were in breach of sanctions. Notable breaches included the payment of wages to more than 20 Aven household staff and the sale of a…
WorldECR | US further sanctions targeting Iran’s ballistic missiles
Home > information > US targets Iran's ballistic missile and drone programs with further sanctions The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) has imposed sanctions on individuals and entities in Iran and China for “procuring various components, such as accelerometers and gyroscopes, which are critical inputs to Iran’s ballistic missile and unmanned aerial vehicle (UAV) programs.” The July 30 operation targeted five individuals and seven entities based in Iran, mainland China and Hong Kong who “facilitated procurement under Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL),” the statement said. The United States and its allies Britain and the European Union have been increasing sanctions on Iran's drone industry since Russia invaded Ukraine in February 2022. Tehran says Russia is a major customer for its drones. Moscow has used combat drones to devastating effect in the war in Ukraine. “Today’s action uncovers additional key front companies and trusted agents through which Iran seeks to obtain these parts,”…
WorldECR | OFAC Sanctions Paraguayan Tobacco Company
Home > information > OFAC imposes sanctions on Paraguayan tobacco company for links to designated former president The U.S. Office of Foreign Assets Control (“OFAC”) said it is imposing sanctions on Paraguayan tobacco company Tabacalera del Este SA (“Tabesa”) for providing financial support to former Paraguayan President Horacio Manuel Cartes Jara, who was designated as a target for sanctions in January 2023 for “engagement in corruption.” On August 6, OFAC stated that “even though Cartes no longer owns Tabesa after entering into a sales agreement to acquire Tabesa’s shares, Tabesa has paid millions of dollars to Cartes and plans to continue to pay despite Cartes being designated as the owner of Tabesa.” It also noted that licensing activities related to Tabesa continue to be authorized under the Section 7 General License of the Global Magnitsky Sanctions Regulations. Looking for expert advice on export controls or sanctions issues? Subscribe now to receive Regular updates on the latest developments in global trade…
WorldECR | Updated UK guidance: Export license required
Home > information > UK updates guidance: regulated research needs export licence to submit for peer review The UK has updated its export control guidance for academia to clarify that controlled research that is not in the public domain requires an export licence when it is sent abroad for peer review. On August 2, the Export Control Joint Unit (ECJU) and the Department for International Trade (DIT) updated the new guidance, which explains: "Research only enters the public domain once it has been published and made available to the public, which means that when controlled research is sent abroad for peer review or publication, it is not yet in the public domain and therefore requires an export licence. Once published, the licence requirement will cease as the research is now in the public domain." 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…
WorldECR | Italian insurance regulator lays down law
Home > information > Italian insurance regulator to draft law on identifying wealth of specific people Italy’s insurance regulator IVASS has published a circular to the industry proposing that sanctions-related obligations include identifying and reporting funds owned by designated persons. According to the Italian-language notice dated July 26, representatives of local insurance companies and foreign companies said: “Necessary procedures and controls need to be implemented to identify ‘funds and economic resources to be frozen’ and to continuously monitor updated sanctions lists. It is prohibited to "carry out any activities with these entities on the national territory, except those authorized by the Financial Security Board in accordance with the current legislation." The existence of assets and economic resources traceable to a designated subject must be reported to the Italian Financial Intelligence Unit (“FIU”) through the form available on its website. After Moscow invaded Ukraine in February 2022, the European Union ordered a freeze on the funds of Russian oligarchs and others.…
WorldECR | OFAC Announces New Compliance Hotline
Home > information > OFAC Announces New Compliance Hotline The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) said it is “moving to a single, user-friendly online platform to receive inquiries from the public.” On August 2, OFAC said: “Users can now submit inquiries and provide all necessary details directly through OFAC’s new Compliance Hotline page,” explaining that “this new platform is designed to improve OFAC’s tracking of inquiries and help OFAC assess when additional public guidance is needed.” OFAC will retire the existing hotline phone number and email and fully transition to the new platform by January 1, 2025. 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 | Beijing imposes sanctions on US lawmakers over their comments
Home > information > Beijing imposes sanctions on US lawmakers for "interfering in China's internal affairs" China's Foreign Ministry announced "countermeasures" against US Congressman Jim McGovern, saying the Massachusetts Democrat "frequently makes remarks and takes actions that interfere in China's internal affairs and undermine China's sovereignty, security and development interests." According to the July 31 directive, all movable, immovable and other properties related to McGovern in China will be frozen. McGovern is the top Democrat on the House Rules Committee and a member of the U.S. Congressional-Executive Commission on China, which focuses on China's human rights record. The congressman said he would "proudly consider this sanction an honor," and said if China's leaders "don't like people publicly criticizing their horrible human rights record, then maybe they should improve their horrible human rights record." 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…
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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…