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
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.
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
Bass, Berry & Sims attorney Thad McBride provided insight on the sanctions evasion techniques being used by foreign owners of seemingly legitimate money services businesses (MSBs) to move funds illicitly. The article provides examples of foreign entities – such as those in countries faced with strict U.S. sanctions, such as Iran or North Korea – taking control of MSBs in foreign jurisdictions and then using the ownership status to pass money and convert funds to U.S. dollars. Because entities in sanctioned countries are severely restricted related to the amount of money that can be brought into or moved within the United States, ownership of these MSBs can be a profitable way of avoiding detection.
Continue Reading The Use of Money Services Businesses in Sanctions Evasion
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
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
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.
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
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
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
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