• Many medical products can be exported to Iran – so long as a license is obtained
  • Imposition of successor liability underscores importance of pre-transaction due diligence
  • OFAC enforcement, as in the past, continues to take a long time

In December 2017, the U.S. Office of Foreign Assets Control (OFAC) announced a penalty of $1.2 million against DENTSPLY SIRONA Inc. (DSI), one of the world’s largest manufacturers of dental products, for violating U.S. sanctions on Iran.  DSI, which is publicly traded in the United States, is based in York, Pennsylvania, and maintains operations around the world. Continue Reading U.S. Dental Supply Company Penalized for Violating Iran Sanctions

I am presenting a Clear Law Institute (CLI) webinar titled, “Hot Topics in US Sanctions.” The United States continues to use economic sanctions and embargoes to limit trade with countries, entities, and individuals that are deemed to pose a threat to US national security. Yet the sanctions maintained by the US government can change quickly.

In this webinar, you will learn more about the current landscape, including possible business opportunities that are available in countries subject to US sanctions. In particular, you will learn about:

  • The Primary US sanctions laws and regulations
  • Penalties and recent sanctions enforcement action
  • Key compliance challenges, such as Specially Designated Nationals, facilitation and the export of services, and the fluidity of current sanctions on Cuba, Iran, Russia and Venezuela
  • Compliance best practices to prevent and detect violations

The webinar will be held on Tuesday, December 12 from 1:00 p.m. – 2:15 p.m. EST. This webinar has been approved for 1.25 hours of general Tennessee CLE credit. For more information and registration, visit the CLI website.

*Receive a 35% discount by using the promo code: thmc35

Post at a glance:

  • FinCEN imposes $8 million penalty against California’s biggest and oldest card club
  • Club failed to implement and maintain an effective anti-money laundering (AML) program and failed to detect, deter, and report suspicious transactions
  • Enforcement action serves as valuable reminder of scope of Bank Secrecy Act (BSA)

As mentioned in our prior AML Update, the U.S. Financial Crimes Enforcement Network (FinCEN) continues to aggressively enforce anti-money laundering and other financial crimes laws.

The latest target? California’s biggest and oldest card club, Artichoke Joe’s.

Continue Reading Anti-Money Laundering Update: California Card Club Clubbed by FinCEN for AML Violations

In a November 10 article published by PaymentsCompliance, I commented on expanded sanctions the United States has imposed against North Korea. These newest sanctions prohibit access to the U.S. financial system for certain entities found to be aiding North Korea. In the article I note that, “the recent U.S. sanctions actions related to North Korea seem to target non-North Korean actors that are operating in the country — especially Chinese entities and individuals, though also several Russian actors. The U.S. government seems to be applying pressure to countries and entities that continue to trade with North Korea, and making it harder for those countries or entities to do business with U.S. and European financial institutions.”

The full article, “Firms Under Pressure as U.S. Extends North Korea Sanctions,” was published by PaymentsCompliance on November 10, 2017, and is available online.

This Post at a Glance:

  • FinCEN imposes $2 million penalty against community bank
  • Bank failed to conduct appropriate due diligence related to Mexican customer
  • Small banks, other financial institutions need to recognize obligations under Bank Secrecy Act

On October 27, 2017, the U.S. Financial Crimes Enforcement Network (FinCEN) announced a $2 million fine against Lone Star National Bank, an independent community bank in Texas, for “willfully violating” anti-money laundering (AML) requirements of the Bank Secrecy Act (BSA).  FinCEN, which is part of the U.S. Treasury Department, has a primary role in safeguarding the U.S. financial system against money laundering and other illicit uses.

Continue Reading Anti-Money Laundering Update: FinCEN Makes Small Texas Bank Pay Big Fine for Violating Bank Secrecy Act

Thad McBride Provides Insight to The New York Times on CFIUS Raised Scrutiny of Foreign Investments in the U.S.In a November 8 article in the New York Times, I provided insight on increased scrutiny of foreign investments in the U.S by the Committee on Foreign Investment in the United States (CFIUS). Lawmakers recently introduced legislation that would expand CFIUS authority, at least in part due to lawmakers’ concerns about continuing Chinese investment activity in the U.S. This legislation follows a rare case in September where President Trump invoked CFIUS in blocking a $1 billion acquisition of a U.S. semiconductor manufacturer by a Chinese-backed private equity fund.

As I noted in the article, CFIUS is “looking at a lot more deals than they have traditionally, and a lot more politically sensitive deals.” Under the newly proposed legislation, stricter and further reaching reviews may become the norm.

The full article, Targeting China’s Purchases, Congress Proposes Tougher Reviews of Foreign Investments, was published on November 8, 2017, and is available online.

The Future of U.S. Sanctions on Iran | Webinar | Thad McBride: PresenterU.S. Sanctions on Iran continue to be in a state of flux.  Yet the opportunities in Iran mean that more and more companies are considering the possibility of entering the Iranian market.  The continued uncertainty regarding the future of U.S. Sanctions on Iran implies the need for international companies to be prepared for any possible outcomes. Much business can now be done in Iran, but it is critical to proceed with caution.

I will be presenting a live webinar along with a panel of distinguished professionals and thought leaders organized by The Knowledge Group that will help parties conducting business with Iran understand the important aspects of this significant topic. We will provide an in-depth discussion of the Countering Iran’s Destabilizing Activities Act of 2017 as well as President Trump’s potential approach to JCPOA enforcement and implementation. We will also offer best practices in avoiding common pitfalls and risk issues as U.S.-Iran tensions rise.

Key topics include:

  • Countering Iran’s Destabilizing Activities Act of 2017
  • The Future of JCPOA
  • Iran’s Program to Counter U.S. Sanctions
  • Additional Sanctions – Implications to Businesses
  • Best Practices to Avoid Pitfalls

The webinar will be held on Thursday, November 9 from 3:00 p.m. – 5:00 p.m. EST. Click here for more information or to register.

Thad McBride | Export Controls: Compliance Challenges and Best Practices | WebinarI am presenting a Clear Law Institute (CLI) webinar titled, “Export Controls: Compliance Challenges and Best Practices.” As the government continues to aggressively enforce its export laws, it is increasingly essential for exporters to understand the laws and their corresponding obligations. This webinar will explore the key challenges companies face when engaging in export transactions, as well as best practices for avoiding enforcement action.

Webinar topics include:

  • Examining the primary US export controls laws and regulations
  • Understanding penalties and recent enforcement actions
  • Recognizing key compliance challenges
  • Compliance best practices to prevent and detect violations

The webinar will be held on Wednesday, November 8 from 3:00 p.m. – 4:15 p.m. EST. This webinar has been approved for 1.25 hours of general Tennessee CLE credit. For more information and registration, visit the CLI website.

More Acquisitions May Be Blocked in the Future

Last month, asserting national security concerns, President Trump blocked a $1.3 billion acquisition of Oregon-based Lattice Semiconductor by a subsidiary of the Canyon Bridge Fund (Canyon Bridge), a private equity fund backed by Chinese investors.  This is one of the few instances to date in which a sale to a non-U.S. buyer of a U.S. company has been blocked under rules administered by the U.S. Committee on Foreign Investment in the United States (CFIUS).  Yet the facts of this matter suggest that more potential acquisitions are likely to be blocked in the future.

Continue Reading CFIUS, POTUS Block Chinese Acquisition of U.S. Semi-conductor Maker

Over the past month, we have closely monitored efforts by the U.S. Congress to tie the president’s hands over sanctions on Russia.  Today, the president signed the Countering America’s Adversaries Through Sanctions Act (CAATSA or the Act), which will have a significant impact on numerous U.S. industries operating in Russia.  And Russia’s response to the legislation indicates that further tensions between the United States and Russia – and possibly additional sanctions on both sides – are likely to follow.

Continue Reading New Law Extends U.S. Sanctions Against Russia