We recently authored an article regarding U.S. sanctions compliance best practices. The article addresses:
Lest U.S. companies think that Cuba and Iran are entirely open for business, a U.S. government settlement announced earlier this month with National Oilwell Varco, Inc. (NOV), a U.S. oilfield services company, will serve as a stark reminder both of existing restrictions and – especially – the U.S. government’s intent to enforce those restrictions aggressively. (Even if doing so takes a long, long time.)Continue Reading Still Serious About Sanctions: OFAC Settles Violations Involving Cuba and Iran
I will be co-hosting a webinar on Tuesday, November 29 on compliance challenges under the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR). Key topics that will be covered in this webinar include ITAR and EAR amendments and new rules; jurisdiction and classification; licensing, agreements, and exceptions; effective compliance practices; recent enforcement;
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Introduction. With the results in from the U.S. presidential election, companies should begin to consider the potential impact of a Trump presidency on their international business. U.S. economic sanctions were among the hot-button issues debated this election cycle, and changes under a Trump Administration could restrict opportunities for companies conducting or hoping to engage in business involving Iran or Cuba. On the other hand, Trump has vowed to improve relations with Russia, which could signal the impending revocation of U.S. sanctions against that country.Continue Reading Post-Election Sanctions Hangover
Over the past year, the big news for companies doing or considering business in Iran has been the scaling back of U.S. and EU economic sanctions. Many global businesses are now permitted to operate in this once prohibited market. Before we celebrate too enthusiastically, however, let’s stop for a moment to consider a potential challenge for some companies trying to capitalize on this new opportunity.
This time, we are focusing on a conundrum specific to companies that contract with the U.S. government.Continue Reading Iran on Your Mind? The FAR Should Be, Too.
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Boeing and Airbus have overcome another hurdle to tapping into the Iranian market. According to news reports, on September 21, the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) issued licenses to both companies to sell aircraft to Iran. Boeing’s license is said to authorize the sale of 80 planes; Airbus reportedly has been permitted to export 17 aircraft as part of a larger plan to sell 118 aircraft to Iran. (Although Airbus is a non-U.S. company, to the extent its aircraft contain more than a de minimis amount of U.S.-origin equipment, Airbus would need a specific authorization from OFAC.)Continue Reading Pioneers of the New Frontier: Boeing and Airbus Cleared to Sell Aircraft to Iran
Since the start of September, the U.S. Treasury Department, Office of Foreign Assets Control (OFAC) has settled with two different companies for alleged violations of U.S. economic sanctions on Iran. The settlements, the first with World Class Technology Corporation (WCT) and the second with PanAmerican Seed Company (PanAmerican), yielded vastly different outcomes. As summarized below, we think the divergent results serve to illustrate how OFAC weighs various factors in calculating penalty amounts.
WCT. On September 7, 2016, OFAC settled with WCT for $43,200 based on alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The alleged violations occurred when WCT exported seven shipments of orthodontic devices to Germany, Lebanon and the United Arab Emirates with suspicion that the devices would be exported to Iran. The devices were collectively valued at almost $60,000. The exports occurred between April 2008 and July 2010.Continue Reading Iran Sanctions: Recent Enforcement Sheds Light on OFAC Penalty Calculations
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Designations. On September 1, 2016, the U.S. Office of Foreign Assets Control (OFAC) designated 37 individuals and entities pursuant to its Ukraine-related sanctions program. OFAC last designated individuals and entities under the Ukraine program in December 2015.
Continue Reading Happy September: OFAC Extends Russia/Ukraine Sanctions
On August 2, 2016, the U.S. Treasury Department, Office of Foreign Assets Control (OFAC) issued a Finding of Violation against two health insurance providers for activities that violated U.S. economic sanctions. The companies allegedly had issued health insurance policies that covered individuals on OFAC’s List of Specially Designated Nationals and Blocked Persons (the SDN List). In general, U.S. companies are prohibited from performing any transaction with or involving parties on the SDN List.
Continue Reading OFAC Dings Two Health Insurance Providers, on the Same Day, for Violating U.S. Sanctions
We authored an article for Upstart Business Journal outlining potential business opportunities in Cuba, now that many trade and travel restrictions have been eased. As we point out, “it is now easier than at any time in the last 50 years for U.S. companies to export their products to and sell their products in Cuba.”