Hiring for positions that involve export controls requires a careful balancing act of adhering to export control and anti-discrimination laws, Sheppard Mullin said in a blog post. “Anti-discrimination laws prohibit unlawful citizenship status restrictions when hiring, and U.S. export controls prohibit disclosing controlled information to foreign nationals without authorization,” lawyers at the firm said. Together, these laws “limit acceptable job descriptions and hiring practices.” The lawyers pointed to a recent Justice Department settlement (see 2007280016) with a law firm and a staffing company as demonstrative of the issues involved. Job postings that require export control authorization shouldn't restrict applicants to only U.S. citizens or other similar requirements, it said. A more cautious job posting would include something to the effect of “candidate has capacity to comply with the federally mandated requirements of U.S. export control laws,” it said.
A major Zimbabwe bank doesn't have to pay a $385 million penalty to the Office of Foreign Assets Control, the CEO of CBZ Holdings said in a recent interview with Bloomberg. CBZ Holdings issued a notice on Sept. 3 to shareholders to withdraw cautionary statements related to the OFAC investigation. The bank cooperated with OFAC “regarding historical transactions involving a party that was subject to OFAC economic sanctions,” it said. “OFAC has concluded its investigations and the matter has been resolved through the issuance of a Cautionary Letter,” it said.
The Office of Foreign Assets Control and the Delaware Department of Justice agreed to partner “to more effectively and efficiently communicate and cooperate on areas of common interest,” they said in a memorandum of understanding released by OFAC. Named issues of joint interest were “cross training staff, providing Delaware DOJ with compliance-related information towards the goal of protecting American national interests by supporting compliance with U.S. trade and economic sanctions laws,” and “supporting litigation against entities placed on OFAC's” sanctions list, it said. The MOU became effective Sept. 2.
The State Department sanctioned five entities and three individuals for taking part in Iran's petroleum industry, Secretary of State Michael Pompeo said in a Sept. 3 news release. “The entities sanctioned today are Iran-based Abadan Refining Company; China based Zhihang Ship Management CO Ltd., New Far International Logistics LLC and Sino Energy Shipping Ltd.; and United Arab Emirates (UAE) based Chemtrans Petrochemicals Trading LLC,” it said. “The individuals sanctioned today are: Min Shi, employee of New Far; Zuoyou Lin, employee of Sino Energy; and Alireza Amin, employee of Abadan.”
A long-awaited rewrite of routed export regulations by the Bureau of Industry and Security and the Census Bureau will introduce a new “Export Responsibility Transfer Agreement” (ERTA) to replace the “writing” currently used to transfer filing responsibilities, with the new agreement specifically transferring filing and licensing responsibilities to the forwarder or agent of the foreign party, said Sharron Cook, a BIS senior export policy analyst, during a webcast of the American Association of Exporters and Importers Annual Conference Sept. 3.
The Treasury’s Office of Foreign Assets Control added International Criminal Court Prosecutor Fatou Bensouda and ICC’s Head of Jurisdiction, Complementary, and Cooperation Division Phakiso Mochochoko to the Specially Designated Nationals List, according to a Sept. 2 notice. Secretary of State Mike Pompeo mentioned the new sanctions while talking to reporters the same day. “In June, the Trump administration authorized the imposition of economic sanctions against foreign persons directly engaged in ICC efforts to investigate U.S. or allied personnel, and those who materially assisted in those -- in that effort,” he said. “Today we take the next step, because the ICC continues to target Americans, sadly.”
The Bureau of Industry and Security is seeking public input “on the effectiveness of its licensing procedures as defined in the Export Administration Regulations for the export of agricultural commodities to Cuba,” it said in a notice released Sept. 2. The comments will be used as part of the BIS biennial report to Congress, it said. Comments are due Oct. 5.
The State Department will implement a temporary waiver “of the policy of denial on the export, reexport, retransfer, and temporary import of non-lethal defense articles and defense services destined for or originating in the Republic of Cyprus,” the Directorate of Defense Trade Controls said in a Sept. 2 notice. The DDTC will temporarily amend the International Traffic in Arms regulations on Oct. 1 to allow for the waiver, which is a result of a State Department determination under the FY 2020 National Defense Authorization Act, it said. The U.S. policy won't change for “lethal defense articles and defense services destined for or originating” in Cyprus, it said.
The Office of Foreign Assets Control will adjust for inflation some civil monetary penalties, it said in an interim final rule released Sept. 2. The changes apply to “penalties for failure to comply with certain recordkeeping and reporting requirements, which are contained in OFAC’s Economic Sanctions Enforcement Guidelines in OFAC’s Reporting, Procedures and Penalties Regulations,” it said. Increases are effective Oct. 5.
The Trump administration “is committed to bold, decisive action” against China that protects U.S. national and economic security interests, Commerce Secretary Wilbur Ross said during a virtual Bureau of Industry and Security conference on Sept. 2. He cited as evidence BIS' s additional export restrictions on Huawei (see 2008170029) and President Donald Trump’s Aug. 6 executive order banning U.S. transactions with the parent companies of TikTok and WeChat. “We each must remain alert to China’s malign behavior and that of other foreign entities that seek our sensitive technologies to damage our economic and national security,” Ross said. “China is a capable, effective and adaptable adversary with unconstrained resources, who regularly uses our American freedom and rules-based norms to advance its goal of dominating global markets.”