The Permanent Court of Arbitration ordered Bahrain to pay more than $270 million in legal fees and damages to Iranian state-owned Bank Saderat and Bank Melli, The Washington Post reported. The win for the Iranian banks came after Bahrain's forced closure of Future Bank in 2015, the result of allegations that the institution facilitated money laundering and the evasion of U.S. and U.N. sanctions. A three-arbitrator panel at the court held that Bahrain violated its own banking policies, motivated primarily by a political animus toward Iran. Future Bank, established in Bahrain in 2004 with the backing of the two Iranian banks, was forced to close its doors a few weeks after the Iran nuclear agreement was signed by Iran and the U.S, along with five other world power countries.
Elizabeth Rosenberg, President Joe Biden’s nominee to be assistant secretary for terrorist financing at the Treasury Department, was confirmed by the Senate Dec. 18. Rosenberg will oversee some of the agency’s sanctions work (see 2106220037 and 2110050029). The Senate earlier this month confirmed Brian Nelson as undersecretary of Treasury’s Office of Terrorism and Financial Intelligence.
The U.S. made “modest progress” during last week's talks on the Iranian nuclear deal, but the path toward all parties rejoining the deal or a similar one remains steep, the State Department said (see 2112100026). While negotiators now have a “common understanding of what the text will be that will serve as the basis for negotiations on nuclear issues,” the U.S. and Iran are still far apart on issues involving sanctions, a senior State Department official said Dec. 17.
The State Department on Dec. 20 identified five additional Chinese officials under the Hong Kong Autonomy Act that are contributing to the erosion of Hong Kong’s autonomy from Beijing. All five officials -- Chen Dong, Lu Xinning, Tan Tieniu, He Jing and Yin Zonghua -- were previously sanctioned by the Treasury Department in July (see 2107160030). Treasury updated their entries on the Specially Designated Nationals List to reflect the State Department's determination. Under the Hong Kong Autonomy Act, the State Department and the Treasury Department must prepare a report to Congress within 60 days that identifies any foreign banks that knowingly conduct “a significant transaction” with any of the five newly added officials. It also requires the U.S. to impose certain additional sanctions on the officials.
New U.S. and European sanctions against Belarus could have broad implications for companies doing business in the region and could signal more multilateral sanctions in the coming months, law firms said this month. The U.S.’s recent restrictions are particularly noteworthy because of a strict new prohibition on certain transactions involving Belarusian sovereign debt, the firms said.
China criticized the U.S.’s decision last week to sanction a range of Chinese companies for their involvement in human rights violations in the Xinjiang region, saying the U.S. has “wantonly suppressed Chinese institutions and enterprises by overstretching the concept of national security.” The sanctions announced last week included export restrictions (see 2112160017) and an investment ban (see 2112160062) on various technology firms. “The attempt of the U.S. to use Xinjiang to contain China will never succeed,” a Chinese foreign ministry spokesperson said Dec. 17, according to a transcript of a regular news conference. “We urge the U.S. side to immediately correct its mistake.”
The U.S. will impose “severe economic and financial consequences,” including new sanctions, if Russia further invades Ukraine, a senior administration official told reporters Dec. 17. The comments came days after the G-7 countries and the European Union threatened “massive consequences” against Russia and after the EU said it is working with the U.S. on a new round of coordinated sanctions (see 2112130007). “We are in the process of preparing severe consequences that would result if Russia decides to take the path of further aggression,” the official said, adding that they are “largely” financial measures. “We are prepared to consider a number of things that we had not considered in the past, and the results will be very profound on the Russian Federation.” Rep. Steve Cohen, D-Tenn., also said the U.S. will likely impose more severe sanctions if Russia pursues more military action in Ukraine. “We certainly need to do what we can to protect Ukraine and let the Russians know that we're not going to accept their aggression,” Cohen, a Helsinki Commission member, said during a Dec. 16 commission hearing. “I think it'd be a mistake for them to go to war, but they may, and we need to be swift to respond with sanctions.” The leaders of the House Foreign Affairs Committee also said the U.S. should prepare multilateral sanctions against Russia (see 2112130044).
The Office of Foreign Assets Control sanctioned Ali Darassa, the leader of a militia group in the Central African Republic, for human rights violations, the agency said Dec. 17. Darassa is the leader of the Union for Peace in the Central African Republic, whose militants have killed and displaced thousands of people in the region since 2014, the agency said.
The Commerce Department should immediately expand an exemption to allow U.S. companies to participate in standards-setting bodies that have members designated on the Entity List, industry representatives said. U.S. firms said they have been forced to avoid the bodies because they fear running afoul of U.S. export laws, a practice that could result in the U.S. losing important influence over the future of emerging technology standards.
The House Foreign Affairs Committee endorsed a bill that would impose sanctions against individuals and entities "who actively undermine civilian-led democracy and human rights in Sudan," according to co-sponsor Rep. Young Kim, R-Calif. The bipartisan bill, also co-sponsored by Rep. Dean Phillips, D-Minn., was passed out of committee on Dec. 9. Sudan had a coup in October, and there was violence against civilians who protested the coup. Kim said in a press release, “The United States is a beacon of hope and opportunity and should support our allies in their pursuit of liberty and democracy. That is why I’m proud to lead the Sudan Democracy Act to help take concrete steps to show support for the brave people of Sudan as they peacefully protest for democracy and hold those responsible for undermining Sudan’s civilian-led democratic transition accountable." Sen. Chris Coons, D-Del., supports similar language in that chamber.