The Office of Foreign Assets Control sanctioned two associates of the Nicolas Maduro family for supporting corruption, the agency said July 23. OFAC designated brothers Santiago Jose Moron Hernandez and Ricardo Jose Moron Hernandez, who are “trusted partners” of Maduro and his son and who help “distribute assets” for the Maduro family around the world. Both brothers also use companies to conduct transactions on behalf of the Maduro family, OFAC said.
The Office of Foreign Assets Control on July 22 revised nine FAQs to reflect changes made to two Ukraine-related general licenses involving Russian automotive conglomerate GAZ Group issued earlier this month (see 2007160044). The FAQs clarify the authorizations in the licenses and update their language to reflect new expiration dates.
U.S. rail and steel industry groups asked the Treasury Department to sanction the China Railroad Rolling Stock Corporation (CRRC), saying the state-owned company is undermining the U.S. rail sector. CRRC plans to dominate the global rail market and has used state-backed financing, below-market pricing and “other anti-competitive tactics” that threaten the U.S. rail industry, the groups said in a July 22 letter. CRRC was also mentioned in a June Defense Department list of Chinese companies with ties to the country’s military (see 2006250024).
The State Department’s Directorate of Defense Trade Controls saw a “significant uptick” in license requests from foreign companies after the agency issued guidance on U.S. people exporting defense services abroad, DDTC Director of Licensing Catherine Hamilton said. The agency also saw an increase in voluntary disclosures as foreign companies realized they may have violated regulations, Hamilton said.
The Office of Information and Regulatory Affairs concluded interagency reviews of two final rules from the Bureau of Industry and Security. On July 16, OIRA completed review of a rule to suspend license exceptions for Hong Kong. BIS announced the license suspensions last month along with a guidance and savings clause (see 2006300050). OIRA received the rule July 10. On July 17, OIRA completed review of a rule to implement export control changes agreed to during the 2018 Wassenaar Arrangement. The rule will also make revisions related to national security controls. OIRA received the rule May 20.
The United Kingdom on July 21 issued a guidance on its Sudan sanctions regime for after the U.K. leaves the European Union next year. The guidance includes compliance requirements for companies doing business with Sudan and an explanatory memorandum detailing the sanctions provisions. The U.K. said it plans to “soon” issue statutory guidance on the sanctions regime, including information on licensing.
The State Department designated Maikel Jose Moreno Perez, president of the Supreme Tribunal of Justice in Venezuela, for alleged involvement in transnational organized crime, the agency said July 21. The State Department also offered up to $5 million for information that leads to Moreno Perez’s arrest or conviction. Moreno Perez, who was sanctioned by the Office of Foreign Assets Control in 2017, has taken bribes to influence decisions of civil and criminal cases in Venezuela, the State Department said.
The Office of Foreign Assets Control created a resource page for information on Hong Kong-related sanctions. The page includes links to frequently asked questions, guidance on U.S. sanctions and restrictions on Hong Kong, applying for a Hong Kong-specific license and more. President Donald Trump recently issued an executive order ending preferential treatment for Hong Kong and detailing a range of sanctions authorities and export bans related to the region (see 2007150019).
The State Department updated its guidance for the Countering America’s Adversaries Through Sanctions Act to address sanctions related to Russian energy export pipelines (see 2007150021), especially Nord Stream 2 and the second line of TurkStream, a notice released July 22 said. The agency deleted portions of the guidance that limited the focus of the act’s sanctions authorities to Russian pipeline projects for which a contract was signed on or after Aug. 2, 2017, the notice said. The agency also clarified that the “focus of implementation” will include Russian pipeline projects, such as Nord Stream 2, a pipeline from Russia to Europe, and the second line of TurkStream, from Russia to Turkey.
It's not enough to just restrict sales of chips to Huawei, and convince allies not to use the Chinese company in their 5G networks, experts said at a Senate Banking Committee Economic Policy Subcommittee hearing on July 22. Rather, they testified, both 5G and export controls should be looked at more broadly. Martijn Rasser, senior fellow in the Center for a New American Security's Technology and National Security Program, said that 5G networks will be essential to all that the U.S. does in technology, so getting 5G right is urgent.