The Senate Foreign Relations Committee last week advanced a bipartisan bill that would require the administration to form a sanctions strategy that would be triggered if China invades Taiwan. The Taiwan Protection and National Resilience Act, reintroduced in March (see 2303300024), would require the several Cabinet agencies to submit a report to Congress describing a “comprehensive sanctions strategy” that the U.S and allies could adopt in response to an invasion. Marco Rubio, R-Fla., one of the authors of the bill, said Congress “must continue to closely monitor” China’s “hostile acts against our democratic ally and remain firm in our strategy to deter any aggression against Taiwan.”
The Office of Foreign Assets Control will retire its public-facing file transfer protocol (FTP) server next year to comply with updated Treasury Department security policies, the agency announced last week. OFAC said it’s “aware” many people use the server, which will be retired June 10, 2024, to automate their sanctions list data downloads, and is maintaining it for one more year “to allow users sufficient time to develop automation that utilizes the list content hosted on the agency's website.” The agency said users should contact O_F_A_C@treasury.gov for “technical support related to this decision.”
Canada granted the vast majority of license applications to export military goods during the 2022 calendar year, approving about 77% of the 4,747 applications it received, the country said this month. In its annual report on military exports, Canada said it approved 3,656 applications, denied 15, returned-without-action 249, saw 339 withdrawn, and canceled or suspended 22. Four-hundred and sixty-six of them remain under review.
The U.K. plans to update its export control regime to better restrict sensitive technology transfers and streamline flows of defense goods to close allies, the country said in a joint declaration with the U.S. released last week. The U.K. also said it’s planning to study how it can “respond effectively” to risks posed by outbound investments as the U.S. prepares to launch its own outbound screening mechanism (see 2305310075).
A new joint document issued by several Cabinet agencies last week provides guidance on Iran’s drone procurement activities and highlights due diligence policies, compliance structures and internal controls companies should be using to prevent illegal exports. The departments of the Treasury, Commerce, Justice and State said it’s “critical that private industry be aware of its legal obligations vis-à-vis entities and items involved in such procurement efforts,” adding that violators could be subject to fines, criminal penalties and suspensions of export privileges.
The Bureau of Industry and Security last week suspended export privileges of Aratos Group, a collection of defense and technology companies in the Netherlands and Greece, and its owner for procuring goods for Russian intelligence services in violation of U.S. export controls. BIS also renewed a temporary denial order against three people and two companies also involved in a Russian sanctions evasion scheme.
The Bureau of Industry and Security added 43 entities in China, Kenya, Laos, Malaysia, Pakistan, Singapore, South Africa, Thailand, the United Arab Emirates and the U.K. to the Entity List for either supporting China’s military, supporting the government's human rights abuses or supporting Pakistan’s weapons capabilities. The additions, outlined in a final rule effective June 12, impose license requirements for all items subject to the Export Administration Regulations. The agency also removed one entity from the list.
Charlie Steele, former chief counsel at the Treasury Department's Office of Foreign Assets Control during 2019-2020, launched a solo law practice called the Law Office of Charles Steele, the attorney announced on LinkedIn. The firm's work will center on "U.S. economic sanctions matters, including counseling, compliance advice, license applications, enforcement matters, and delisting petitions," along with proceedings involving the Committee on Foreign Investment in the U.S. and national security. Steele added that he will continue his practice at Forensic Risk Alliance, where he has worked as a partner since 2020.
The Bureau of Industry and Security again renewed the temporary denial order for Belavia Belarusian Airlines, Belarus' state-owned national airline. BIS first suspended the export privileges of the airline last June (see 2206160015) and again in December 2212150054), barring it from participating in transactions with items subject to the Export Administration Regulations. The agency renewed the denial order for another 180 days on June 7 after finding Belavia continues to illegally operate aircraft subject to the EAR, including for flights between Russia, Belarus, Georgia, Turkey and the United Arab Emirates.
The Office of Foreign Assets Control this week revised 15 entries on its Specially Designated Nationals List. The entries have ties either to the U.S.-sanctioned National Iranian Tanker Company or the Islamic Republic of Iran Shipping Lines. OFAC didn’t release more information.