Several companies this month disclosed potential export control or sanctions violations or updated the status of their current disclosures, including an information technology services company, an investment firm and a digital asset services company. The potential violations involve a business trying to exit the Russian market, a company potentially illegally sending export-controlled data and a firm waiting years for a response to two sanctions disclosures.
The U.S. should convince the U.N. to harmonize its sanctions lists with U.S. trade blacklists, a House Financial Services subcommittee heard during a hearing last week. Aligning the lists could require the World Bank and other international organizations to adhere to U.S. sanctions, one witness said, and help the U.S. extend the reach of its restrictions against China.
A European Parliament committee is pushing for new rules that could allow the bloc to more quickly and efficiently seize sanctioned assets. The rules, approved as part of a draft position by the Civil Liberties, Justice and Home Affairs Committee this week, would harmonize the authorities of individual European Union member states’ asset recovery offices to “make cross-border investigations more efficient” and increase information sharing, including on “beneficial ownership registries, securities and currency information, customs data and annual financial statements of companies,” the Parliament said in a May 23 press release. They also would close “loopholes” by “ensuring assets can be frozen quickly, with temporary urgency measures where necessary” and “crack down” on those evading asset seizures through help from a third party. Confiscated assets could also be used to compensate victims or put toward “social or public interest purposes.”
U.S. exports of semiconductors to China fell by about $2.9 billion in 2022, “wiping out” growth the industry saw the year before, the U.S.-China Business Council said in a report this week. The decline was partly due to the Biden administration’s sweeping chip controls released in October (see 2210070049), the report said, adding that the “more frequent use of export controls over the last few years has led Chinese customers to deprioritize American products when there are viable domestic and third-country suppliers.”
The Office of Foreign Assets Control on May 25 removed more than 20 entries from its Specially Designated Nationals List. The entries were originally added for counter-narcotics sanctions reasons and include people and companies located in Colombia and Venezuela. OFAC didn’t provide more information.
The Office of Foreign Assets Control this week sanctioned Ivan Aleksandrovich Maslov, a Mali-based official with the sanctioned Russian private military company Wagner Group. Maslov purportedly leads the Wagner Group’s mercenary units in Mali, working as part of an organization that has committed “widespread human rights abuses” and may be trying to evade sanctions on imports of military equipment for use against Ukraine, the Treasury Department said.
The Commerce Department should amend several portions of its proposed guardrails on recipients of Chips Act funding, including measures that could prevent the U.S. chip industry from participating in international standards bodies or inhibit “routine” business activities, trade groups and technology companies said in comments released this week. Some said Commerce should also limit which companies qualify as “foreign entities of concern” and revise the rule’s proposed definition for “legacy semiconductor” to more closely align with export controls.
The U.K. Department for Business and Trade released new guidance covering Russia-related sanctions circumvention. The guidance addresses ways companies can conduct sanctions due diligence, how companies try to "covertly" acquire goods through the procurement cycle and several red flags and "risk indicators."
Republicans leaders this week criticized China's decision to ban certain sales from U.S. chip company Micron (see 2305220053), saying the move was politically driven and lacked evidence.
The State Department needs to answer for media reports that it “held back” human rights sanctions and export controls on China following the U.S. discovery of a Chinese reconnaissance balloon in American airspace earlier this year (see 2302100072), said Rep. Michael McCaul of Texas. McCaul, the top Republican on the House Foreign Affairs Committee, cited a recent Reuters report that said the State Department was trying to “limit damage to the U.S.-China relationship” and pushed back on new trade restrictions.