The National Defense Authorization Act, which passed the House of Representatives with a veto-proof majority of 335-78, would end anonymity at shell companies, in an attempt to prevent money laundering. Companies, whether corporations or limited liability companies, would have to file the information with the Financial Crimes Enforcement Network (FinCEN). If the regulations are not obeyed, or if the information is false, there could be criminal penalties, not just fines.
The United Nations Security Council’s Sanctions Committee recently approved updates to its exemption procedures for humanitarian assistance to North Korea, a Dec. 7 news release said. The updates will help provide U.N. member states and nongovernmental organizations with clearer explanations of the UNSC’s humanitarian exemption mechanism, including guidance and recommendations on how to submit exemption requests. The UNSC said the updates will “further simplify several areas of the application process,” extend the “standard duration” for exemptions from six to nine months, allow for “greater flexibility in the shipment consolidation process” and introduce a “best practices process” for applicants.
The United Kingdom’s Office of Financial Sanctions Implementation removed 12 entries from its Iraq sanctions list, a Dec. 9 notice said. The move brings the U.K. in line with the United Nations’ decision earlier this month to remove the same designated people and entities (see 2012020004).
The Office of Foreign Assets Control sanctioned three people and three entities in Africa and Asia for corruption, a Dec. 9 news release said. The designations were made as part of International Anti-Corruption Day and imposed sanctions under the Global Magnitsky Human Rights Accountability Act.
The incoming Joe Biden administration is planning a “top-to-bottom review” of sanctions operations, programs, budgets and staffing levels at the Treasury Department, Bloomberg reported Dec. 8. It said Adewale Adeyemo, Biden’s pick for deputy treasury secretary, will lead the review. Adeyemo will address “staffing issues” and consider increasing the budget for the Terrorism and Financial Intelligence unit, which oversees the Office of Foreign Assets Control. A Biden transition team spokesperson didn’t comment. OFAC lost a record number of employees last year, which has led to longer processing times and an influx of inexperienced officials (see 2010290028).
The Office of Information and Regulatory Affairs on Dec. 8 completed a review of a final rule from the Bureau of Industry and Security that would clarify the scope of certain export restrictions to reflect decisions made at the June 2019 Australia Group plenary meeting. The rule, received by OIRA Nov. 16, would amend the scope of Export Control Classification Number 1C991, covering vaccines, immunotoxins, medical products, and diagnostic and food testing kits.
U.S. Trade Representative Robert Lighthizer Dec. 9 announced that he'll be seeking consultations with Mary Ng, his Canadian counterpart, over the way that Canada allocated tariff rate quotas. Canadian processors are guaranteed a percentage of those import quotas, and the U.S. says that undermines American producers' access to Canada. “President [Donald] Trump successfully renegotiated the USMCA to replace the failed NAFTA, and a key improvement was to give U.S. dairy producers fairer access to Canada’s highly protected dairy market,” he said. “We are disappointed that Canada’s policies have made this first ever enforcement action under the USMCA necessary to ensure compliance with the agreement.”
The United Kingdom will stop collecting 15% punitive tariffs on U.S. aircraft; 25% tariffs on more than 100 products, notably agricultural, food and beverage items, including chocolate, ketchup, rum, vodka, frozen orange juice and cotton; and 25% tariffs on equipment, such as tractors, firetrucks and exercise equipment.
The Census Bureau needs more time to assess the comments it received on whether to eliminate certain export filings for shipments to Puerto Rico and the U.S. Virgin Islands, partly because the comments were so split (see 2012040033), said Kiesha Downs, chief of Census’ Foreign Trade Division’s regulations branch. She also said the comments didn’t help the agency find alternative sources to collect the data that is normally submitted through the Electronic Export Information filings.
The State Department is circulating a proposed rule that would permanently revise the International Traffic in Arms Regulations to allow employees involved in ITAR-related activities to work remotely. To make the change, the rule would update the definition of a “regular employee” in ITAR, which would allow for greater flexibility for industry workers who telework, a State Department official said in a Dec. 9 email. The proposed rule was sent for interagency review last week (see 2012080011).