The Office of Foreign Assets Control this week sanctioned China-based Sichuan Silence Information Technology Company and an employee, Guan Tianfeng, for their roles in a 2020 cyber attack against U.S. critical infrastructure companies and firewalls of thousands of businesses worldwide. OFAC said the company tried to steal sensitive data, including usernames and passwords, and infect victims’ systems with ransomware. The agency added that Sichuan Silence is a cybersecurity government contractor whose “core clients” are Chinese intelligence services.
The U.K. released new data on Israel-related export licenses this week, about three months after the U.K. suspended a range of licenses for Israel over concerns they were being used to ship items for the Israeli military in Gaza (see 2409030023).
The Bureau of Industry and Security is crafting a new interim final rule titled “Export Control Framework for Artificial Intelligence Diffusion.” BIS sent the rule for interagency review on Dec. 9. The agency didn’t release more information.
The Bureau of Industry and Security is adding eight companies to the Entity List that it said are “enabling human rights violations,” including by supplying sensitive technology or military items to the Chinese, Russian and Myanmar militaries. The additions, outlined in a final rule released Dec. 10 and effective Dec. 11, target technology companies and supplier firms based in each of those three countries.
Companies should expect the U.S. government to continue to prioritize enforcement of export controls in the coming months, including by issuing new penalties for export violations, said Matthew Axelrod, the Bureau of Industry and Security’s top export enforcement official. He also revealed that BIS is using a new tool to better screen foreign parties listed on license applications, and he said a recent shift in how the agency uses metrics has allowed it to devote more attention to cases involving the most sensitive technology.
The Financial Crimes Enforcement Network said it won’t be enforcing new reporting requirements under its upcoming beneficial ownership information reporting rule in light of a recent federal court order blocking the rule from taking effect. A statement on FinCEN’s website confirmed that companies are “not subject to liability if they fail to” report while the court order is in force, though those companies can voluntarily submit reports if they wish.
The Bureau of Industry and Security again renewed temporary denial orders for two Russian airlines that it said continue to illegally operate aircraft on flights into and out of Russia. The agency renewed denial orders for Siberian Airlines and Nordwind Airlines for one year from Dec. 6, saying they continue to "act in blatant disregard for U.S. export controls and the terms of previously issued TDOs," including by operating flights between Russia and Thailand, China, Tajikistan, Kyrgyzstan and Turkey. BIS last renewed the orders in December 2023 (see 2312130011).
A Chinese national was charged for his role in a scheme to illegally ship export-controlled "defense-related technical data" to China and illegally supply the Department of Defense with Chinese-origin rare earth magnets for aviation systems and military items, DOJ announced.
The newly released FY 2025 National Defense Authorization Act (NDAA) calls for the executive branch to take several actions related to export controls, including a review of China’s efforts to evade U.S. restrictions, and an assessment of Japan’s possible participation in the Australia-U.K.-U.S. (AUKUS) security partnership.
The U.K.'s Office of Financial Sanctions Implementation added to its sanctions regimes for Russia and the Democratic Republic of the Congo on Dec. 9. OFSI designated Anto Joseph for making funds available in ways that threaten Ukraine, and sanctioned Alain Goetz for contributing to "serious human rights violations" in the DRC.