I offered insights for an article outlining ways that the United Kingdom’s exit from the European Union could affect the Washington, D.C. region. My comments are specific to how the transition could impact government contracting and benefit the defense trade.
The full article, “6 Ways Brexit Could Impact Washington Business,” was published by
Despite a host of unanswered questions, national security concerns and political barriers, Boeing announced on June 22, 2016 that it has signed a Memorandum of Agreement (MOA) with state-owned Iran Air. If finalized, the agreement would mean that Boeing could sell up to 100 commercial aircraft to Iran, at a cost of roughly $25 billion.
Boeing reportedly obtained a license from the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC) to execute the MOA and engage in the negotiations that led to its signing. (OFAC is the U.S. government agency that administers most U.S. economic sanctions on Iran.) That authorization was made possible due to a new licensing policy relating to commercial passenger aircraft that OFAC issued in January 2016, following the July 2015 Joint Comprehensive Plan of Action (JCPOA) between the United States and its allies and Iran. The JCPOA significantly scaled back sanctions against Iran.Continue Reading Iran Update: The Significance of the Boeing Deal
May was a busy month in the world of U.S. defense exports. Perhaps most controversial was President Obama’s decision to terminate the arms embargo against Vietnam. The embargo, in place since 1975, was partially lifted in 2014 to provide Vietnam with greater maritime surveillance and improved security systems. Since then, the United States has contributed $46 million to strengthening Vietnam’s maritime security.
Separately, the U.S. State Department announced that it would begin reviewing applications for licenses to export defense articles and defense services to Cote d’Ivoire, Liberia and Sri Lanka on a case-by-case basis. Those announcements followed three U.N. Security Council Resolutions terminating the U.N. arms embargoes against those nations.Continue Reading The United States Lifts Arms Embargoes Against Vietnam and Other Countries
We recently authored an article outlining the details surrounding the United States’ eased trade restrictions with Cuba. Businesses must carefully analyze the new regulations before venturing into business opportunities in Cuba.
As stated in the article, “in its zeal to ease restrictions, the U.S. government has not always accounted for how to authorise certain activities
In February, we discussed the impact easing restrictions with Cuba would have on trade. And Cuba continues to be a hot topic for U.S. companies and business people. Yet it is vital for counsel to understand the continuing hurdles and steps necessary for compliance. On April 12 at 1:00 pm EST, we will present a
Join us next week as we present on the topic of “Complying with ITAR Requirements Amid Increased Enforcement” in a webinar hosted by Clear Law Institute. We will be speaking with Dave Hardin, Senior Counsel at Raytheon, as we cover how to comply with current U.S. export control requirements under the U.S. International Traffic in
We recently authored an article discussing recent updates in U.S. sanctions and their effect on companies engaged in international business, including cyber-related sanctions and enforcement.
As stated in the article, “…through enforcement actions against both large and small companies, the government continues to underscore that any company conducting business internationally – whether directly or through
On February 19, 2016, the UK Serious Fraud Office (SFO) convicted Sweett Group plc (Sweett), a London-based construction and professional services company, under Section 7 of the UK Bribery Act. This is the first conviction under Section 7, which requires companies to prevent bribery in the course of business, and the penalty imposed against Sweett – the company had to pay a total of GBP 2.25 million – was minimal in the context of penalties paid under the U.S. Foreign Corrupt Practices Act (FCPA). Yet this action provides further evidence that the SFO may really be able to meaningfully enforce the Bribery Act.
Under Section 7 of the Bribery Act, a company can be found liable if it – or any associated person, subsidiary or entity, anywhere in the world – engages in bribery with the intention of obtaining or retaining business or some sort of commercial advantage. Liability can be established even if company management does not authorize or encourage, and is not even aware of, the illicit conduct. (While a company will have a full defense if it can show that it maintained adequate procedures to prevent bribery, as appears evident from the resolution in this matter, Sweett was unable to present such a defense.)
According to news reports, the SFO began investigating Sweett, which is listed on the Alternative Investment Market (or AIM) in London, in July 2014. Through its investigation, the SFO found that a Sweett subsidiary in the United Arab Emirates (UAE), Cyril Sweett International Limited (Cyril), had made corrupt payments to the Vice Chairman of Al Ain Ahlia Insurance Company (AAAI) to help secure a contract to build a hotel in Abu Dhabi. After pleading guilty in December 2015, Sweett was ordered to pay a GBP 1.4 million fine, a GBP 851,152 confiscation amount and GBP 95,000 in SFO prosecution costs.
The SFO reportedly is continuing its investigation of individuals involved in the scheme.
Lessons Learned. We derive several interesting lessons from this action.Continue Reading SFO Convicts UK Company for Middle East Bribery
On January 27, 2016, the U.S. Commerce Department Bureau of Industry and Security (BIS) and the U.S. Treasury Department Office of Foreign Assets Control (OFAC) amended their regulations to further facilitate trade between the United States and Cuba. This is only the most recent set of steps the U.S. government has taken since President Obama announced, in December 2014, that the United States would move toward normalizing relations with Cuba.
While many limitations on trading with Cuba remain in place, the recent amendments ease restrictions related to certain exports and re-exports to Cuba, and travel to the island. The amendments also should make it easier to engage in financial transactions in and with Cuba (so long as the underlying conduct is permitted). Below is a brief summary of the amendments; the amendments themselves are available at 81 Fed. Reg. 4580 (BIS) and 81 Fed. Reg. 4583 (OFAC).
BIS Amendments. BIS controls exports and re-exports of commercial or so-called “dual use” items. Until January 2015, with limited exceptions, BIS prohibited virtually all exports and re-exports of U.S. commercial goods to Cuba. (U.S. defense exports, which are controlled by the State Department, have been and continue to be prohibited for export or re-export to Cuba. This prohibition is unlikely to be lifted any time soon.)Continue Reading The United States (Yet Again) Eases Trade Restrictions on Cuba
On December 22, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated more than 30 individuals and entities under the Ukraine-related sanctions. The designations were made under the auspices of several different executive orders, and thus there are different restrictions on transacting with these parties depending on the basis for each party’s designation. Roughly