U.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
WEBINAR – Export Controls: Compliance Challenges and Best Practices
I 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,
CFIUS, POTUS Block Chinese Acquisition of U.S. Semi-conductor Maker
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
New Law Extends U.S. Sanctions Against Russia
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
U.S. Penalizes Exxon for Violating U.S. Sanctions on Russia, May Have Complicated How U.S. Companies do Business in Russia
- Penalty imposed against Exxon related to contracts with Russian oil company Rosneft
- Rosneft is not a prohibited party but its president is
- OFAC alleges that “senior-most” Exxon management were involved
- Exxon responds with suit against OFAC
On July 20, 2017, the U.S. Treasury Department Office of Foreign Assets Control (OFAC) announced that ExxonMobil (Exxon) must pay a $2 million penalty for violating U.S. sanctions on Russia. On the same day, Exxon responded by suing OFAC.Continue Reading U.S. Penalizes Exxon for Violating U.S. Sanctions on Russia, May Have Complicated How U.S. Companies do Business in Russia
Stakes for Exxon in Sanctions Case Go Far Beyond a $2 Million Fine
I provided insight for an article published by The New York Times on the $2 million fine that the U.S. Treasury Department charged Exxon Mobil for violating Russian sanctions. Exxon apparently entered into eight contracts with Rosneft, the Russian state oil company, signed by Rosneft CEO Igor Sechin, who is a prohibited party under U.S.
Senate Passes Russia and Iran Sanctions Legislation
- Proposed legislation would extend sanctions on Russia and Iran
- New restrictions aimed at Russian energy sector and cybercriminals
- Legislation may pit Senate against House and the president
On June 19, 2017, the U.S. Senate overwhelmingly passed a bill mandating sanctions against Russia and Iran and a 30-day congressional review period should the president attempt to reduce those sanctions.
The bill remains in the House after congressional leaders challenged the fact that the revenue-raising bill did not originate in the House. The White House nonetheless is in the unenviable position of having to defend (or oppose) the implementation of sanctions against both Iran and Russia while attempting to conduct diplomacy with the Kremlin. With a veto-proof majority in at least one chamber, the president’s options appear limited.Continue Reading Senate Passes Russia and Iran Sanctions Legislation
Senate AML Bill Would Raise KYC Burdens
I provided insights for an article in Compliance Reporter discussing the Combating Money Laundering, Terrorist Financing and Counterfeiting Act of 2017 and the heightened compliance measures financial institutions may face if the bill is passed in the Senate. The bill would put forth an increased ability for regulators to crack down on questionable activity occurring beyond U.S. borders by reviewing records of coordinating institutions stateside.
Continue Reading Senate AML Bill Would Raise KYC Burdens
Rare Court Case Sheds Light on U.S. Sanctions Enforcement
- California company accused of sanctions violations challenges U.S. Treasury Department
- Appeals court generally sides with government but remands because of arbitrary and capricious decision related to five alleged violations
- Traditional interpretation of “inventory exception” is considered by Court
It is rare for companies to go to court to fight penalties imposed by the Office of Foreign Assets Control (OFAC) for violations of U.S. sanctions. It is even more rare for a court to make any sort of finding against the agency. Yet that is exactly what happened when the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) recently considered OFAC’s imposition of penalties against Epsilon Electronics (Epsilon) for alleged violations of U.S. sanctions against Iran.Continue Reading Rare Court Case Sheds Light on U.S. Sanctions Enforcement
The Long Arm of U.S. Sanctions: Penalty Imposed Against Canadian Subsidiary of U.S. Subsidiary of Japanese Company
- American Honda Finance Corporation pays for alleged violations of U.S. sanctions on Cuba
- Violation committed by American Honda’s subsidiary in Canada
- Penalty underscores breadth of U.S. jurisdiction, importance of compliance reviews
On June 8, the Office of Foreign Assets Control (OFAC) announced a monetary penalty against American Honda Finance Corporation (American Honda) for alleged violations of the Cuban Assets Control Regulations (CACR), the primary regulations by which the United States imposes economic sanctions on Cuba. A copy of the OFAC press release announcing the penalty is available here.Continue Reading The Long Arm of U.S. Sanctions: Penalty Imposed Against Canadian Subsidiary of U.S. Subsidiary of Japanese Company