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…
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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…