Sanctions (OFAC)

Effective December 23, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) amended the Iranian Transactions and Sanctions Regulations (ITSR) to expand the scope of medical devices that can be exported to Iran.

Now, unless specifically excluded by ITSR section 530(a)(3)(ii)-(iv), an item that qualifies as a “device” under section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. § 321) and is designated EAR99 (or would be if it were located in the United States) can be exported or re-exported to Iran without specific authorization from OFAC.  (Previous restrictions on payment terms and shipping dates remain in effect.)Continue Reading Happy New Year: OFAC Expands Exports of Medical Devices to Iran

In what may be a harbinger of things to come, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has issued new guidance regarding what may occur if the United States re-implements economic sanctions against Iran that were scaled back following the July 2015 nuclear deal (the Joint Comprehensive Plan of Action or JCPOA). That guidance, in the form of two amended Frequently Asked Questions (M.4 and M.5, available here), makes clear that:

  • the United States will not retroactively impose sanctions for legitimate activity undertaken prior to any sanctions snapback;
  • continuation of previously legitimate activities following snapback could be penalized; and
  • the U.S. government intends to provide a 180-day period to wind down Iran business that was consistent with the lifting of U.S. sanctions under the JCPOA.

Continue Reading Happy (End of the) Holiday: OFAC Signals Potential Iran Sanctions Snapback

As a follow-up to a previous article, we’ve authored further details about the actions a company should take to respond to a discovered violation of U.S. sanctions. As pointed out in our article, while each enforcement action is different, “a company should consider their response to an OFAC violation an opportunity to attempt to mitigate…

We recently authored an article outlining steps a company should take to respond to a U.S. sanctions violation. The following actions are recommended:

  • Implement immediate remedial actions
  • Decide whether to self-disclose
  • Scope the internal investigation
  • Take corrective action
  • Negotiate with OFAC

The full article, “Responding to an OFAC Violation,” was published by Lexis Practice Advisor®.…

We recently authored an article regarding U.S. sanctions compliance best practices. The article addresses:

  • Who is subject to U.S. sanctions;
  • Who is targeted by U.S. sanctions;
  • What actions are prohibited with sanctioned parties;
  • How to apply for authorization to perform prohibited activities;
  • The penalties that can be imposed for U.S. sanctions violations; and
  • Best practices

…

  • U.S. oilfield services company pays $25 million for violations involving senior managers.
  • Aggressive enforcement continues even though restrictions have been eased.
  • It can take a long time to settle violations of U.S. sanctions and export issues.

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

Key points:

  • The Trump Administration could dramatically alter U.S. sanctions against Iran, Cuba and Russia.
  • Sanctions against Iran and Cuba could snap back, rendering illegal some transactions that are currently permitted.
  • Sanctions against Russia could be scaled back or rescinded entirely.
  • Until the smoke clears, companies should approach these markets with caution.

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.

Key points:

  • Leading aircraft manufacturers obtain U.S. government authorization to sell planes to Iran.
  • Issuance of authorizations is notable but may be hard to duplicate in other industries.
  • Even if authorized, companies face practical challenges if pursuing business in Iran.

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

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

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