I recently provided insight for a Bloomberg Law article on the new interim rules implementing the Foreign Investment Risk Review Modernization Act (FIRRMA). The interim rules, which went into effect on November 10, broaden the authority of the Committee of Foreign Investment of the United States (CFIUS) – an interagency committee that reviews foreign investments
Update on Russia: Restrictions Expanded to New Actors, Industries – Global Trade Magazine
On November 7, 2018, Global Trade Magazine republished a blog post that I wrote discussing recent changes to U.S. law that further restrict trade with individuals and entities in Russia. The changes further complicate an already-difficult situation for businesses working in and with the country.
You may access the original September 27 blog post on
Update on Russia: Restrictions Expanded to New Actors, Industries
- Economic sanctions and export restrictions extended
- Russian investment in United States likely subject to heightened scrutiny
- Diligence on Russia transactions and business partners is essential to ensure compliance
Since the beginning of August 2018, the United States has taken multiple actions that will affect U.S. trade with Russia. The actions cover exports to Russia, doing business with Russian partners, and potential Russian investment in the United States. These actions have added to the already challenging landscape of conducting business in and with Russia.
Economic Sanctions in Place Since 2014 Are Expanded Again
The United States has maintained targeted economic sanctions on Russia since 2014. Most of these sanctions are administered by the U.S. Treasury Department, Office of Foreign Assets Control (OFAC).
These sanctions ensnare many prominent Russian individuals and entities. They have also ensnared prominent U.S. companies: see our July 2017 blog post on penalties imposed against Exxon for Russia sanctions violations. For an example of how sanctions have been periodically and consistently extended, see our September 2016 blog post.Continue Reading Update on Russia: Restrictions Expanded to New Actors, Industries
Swedish Telecom Company Pays Penalty for Sanctions Violation
- Ericsson Caused Violation by Having U.S. Party Ship Equipment to Sudan
- U.S. Employee Facilitated Sudan Business
- OFAC Expects Parties Conducting International Business to Have Robust Compliance Processes
In June 2018, the U.S. Treasury Department, Office of Foreign Assets Control (OFAC) announced that Ericsson, a Swedish telecommunications company, agreed to pay approximately $145,000 for violating U.S. sanctions on Sudan. Among other things, this is one of the few OFAC enforcement actions explicitly premised on a non-U.S. actor causing a U.S. company to violate U.S. sanctions.Continue Reading Swedish Telecom Company Pays Penalty for Sanctions Violation
President Snaps Iran Sanctions Back
- Previously permissible activities must be wound down in 90 or 180 days
- Non-U.S. companies at particular risk of enforcement action
- Only limited guidance issued so far, unclear what authority U.S. companies have
On May 8, 2018, President Trump announced that the United States is leaving the Joint Comprehensive Plan of Action (JCPOA). The U.S. Treasury, Office of Foreign Assets Control (OFAC), which administers most U.S. economic sanctions programs, has taken an initial stab at providing guidance in a set of Frequently Asked Questions (FAQs) released the same day as the President’s announcement.Continue Reading President Snaps Iran Sanctions Back
US Hammers ZTE with Export Denial Order, May Further Weaken Trade with China
- 7-year denial order imposed against Chinese telecommunications equipment maker
- Denial order strictly limits business with company
- Action comes as U.S. imposes other trade restrictions on China
On April 16, U.S. Commerce Secretary Wilbur Ross announced a seven-year denial order (the Order) against Chinese telecommunications company Zhongxing Telecommunications Equipment Corporation (ZTE). The Order prohibits ZTE from engaging in virtually any trade or other activities involving U.S.-origin goods or technologies.Continue Reading US Hammers ZTE with Export Denial Order, May Further Weaken Trade with China
U.S. Dental Supply Company Penalized for Violating Iran Sanctions
- 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
WEBINAR – Hot Topics in U.S. Sanctions
I am presenting a Clear Law Institute (CLI) webinar titled, “Hot Topics in U.S. 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 U.S. national security. Yet the sanctions maintained by the U.S. government can change quickly.
Thad McBride Comments on Expanded U.S. Sanctions Against North Korea
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
WEBINAR – The Future of U.S. Sanctions on Iran: What You Should Do Amidst Uncertainties
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