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Thad McBride

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP), and the Foreign Corrupt Practices Act (FCPA). He also advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad supports international companies across a range of industries, including aviation, automotive, defense, energy, financial services, manufacturing, medical devices, oilfield services, professional services, research and development, retail, and technology. Beyond advising on day-to-day compliance matters, Thad regularly assists clients in investigations and enforcement actions brought by government agencies, including the U.S. Department of Justice (DOJ), the U.S. Treasury Department Office of Foreign Assets Control (OFAC), the U.S. State Department Directorate of Defense Trade Controls (DDTC), Customs and Border Protection (CBP), the U.S. Commerce Department Bureau of Industry & Security (BIS), and the Securities & Exchange Commission.

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  • 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

  • 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

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

  • 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

  • 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

  • Proposed legislation targets current gaps in U.S. financial crime law and enforcement
  • Bi-partisan Senate legislation would likely expand compliance obligations for banks and others in financial services industry
  • Proposed legislation is in line with U.S. and international efforts to fight terrorism and trafficking through economic sanctions and anti-money laundering (AML) rules

On May 25, 2017, Sen. Chuck Grassley (R-IA) introduced the “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017” (the “Act”).  The full text of the bill is available here.Continue Reading Proposed Legislation Would Combat Terrorist Financing, Money Laundering

I commented on an article published by PaymentsCompliance, a global leader in supporting the payments industry, on new legislation proposed in the U.S. Senate to target terrorism financing and money laundering. In the article, I point out that the proposed bill could create a greater compliance burden for banks and other financial entities and service providers. I also note that it is “nice to see a bipartisan effort to come up with something which most people would agree is a good measure.”
Continue Reading U.S. Bill Proposes Major AML Updates

I co-authored an article with Heather Smith, Associate General Counsel and Secretary at Lydall, Inc., outlining best practices for companies to undertake to ensure successful export transactions. The article also discusses the relevant regulations and agencies governing and enforcing export activities, such as the Export Administration Regulations (EAR), the International Traffic in Arms Regulations (ITAR) and Office of Foreign Assets Control (OFAC). As we point out in the article, “U.S. export and sanctions laws have a broad reach and can cover conduct occurring entirely outside the United States and actions undertaken by non-US parties.” It is therefore important that any company involved in export transactions be aware of and establish “a robust culture of compliance, including tone from the top and clear policies and procedures, [as] an essential part of effective compliance.”
Continue Reading Export Compliance: Challenges and Best Practices

In an article published in the May/June 2017 issue of ABA Bank Compliance (a publication of the American Bankers Association), I provided insight on how banks can mitigate violations with the Office of Foreign Assets Control (OFAC). In January 2017, OFAC announced a settlement in which a large Canadian bank agreed to pay more than…

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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