The Office of Foreign Assets Control this week removed an entry for Indian national Manoj Sabharwal from its Specially Designated Nationals List. OFAC sanctioned Sabharwa in 2021 for ties to a smuggling network that funds Iran’s Islamic Revolutionary Guard Corps-Qods Force and the Houthis in Yemen (see 2106110018). The agency didn’t release more information on the removal.
The Office of Foreign Assets Control this week sanctioned 52 people and entities working as part of a “vast” international money laundering and sanctions evasion network for Hezbollah financier and Specially Designated Global Terrorist Nazem Said Ahmad (see 1912130023). The designations target companies in Lebanon, the United Arab Emirates, South Africa, Angola, Côte d’Ivoire, the Democratic Republic of the Congo, Belgium, the U.K. and Hong Kong for helping Ahman avoid U.S. restrictions and finance his “luxurious lifestyle,” OFAC said.
The State Department completed a round of interagency review for an interim final rule that would seek public comments on revisions to the U.S. Munitions List. The rule, sent for review Feb. 2 (see 2302030013) and completed April 17, would request feedback “regarding the technology frontier,” which could help the agency identify specific technology capabilities that have “sufficiently evolved” to consider amending the International Traffic in Arms Regulations. The rule could add, revise or exclude certain items from the ITAR.
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DOJ this week announced a $365,000 settlement with General Motors over claims that the car maker -- in an attempt to comply with U.S. export control laws -- discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act. The agency also released a fact sheet to help employers avoid citizenship status discrimination when seeking to comply with export control laws.
The Bureau of Industry and Security fined U.S.-based Seagate Technology $300 million for allegedly violating U.S. export controls against Huawei, the “largest standalone administrative penalty in BIS history,” the agency said. The agency fined the company and its branch in Singapore for selling millions of export-controlled hard disk drives to Huawei in violation of BIS’ foreign direct product rule. As part of a settlement agreement, Seagate agreed to a “mandatory multi-year audit requirement,” BIS said, and could face a five-year export denial order if it violates the terms of the agreement. The settlement comes about 18 months after Senate Republicans urged BIS to penalize Seagate for “likely” violating U.S. export controls against Huawei. Seagate said it received a proposed charging letter from BIS in August.
The Bureau of Industry and Security issued a new set of policy "clarifications" this week that it hopes will increase the number of voluntary self-disclosures (VSDs) it receives for serious export violations. One clarification says the agency could increase penalties on companies that fail to disclose a “significant” potential violation, while another clarification could reward companies that tip off BIS about their competitors’ wrongdoings.
The EU called for the "full implementation" of U.N. sanctions on North Korea following its April 13 launch of a new long-range ballistic missile type. The European Council denounced the move, calling on Pyongyang to halt all "illegal and dangerous actions that violate UN Security Council resolutions" and asking all U.N. member states to enforce sanctions and "urge the DPRK to resume meaningful dialogue with all the main parties."
The U.K. issued a General License under its Russia sanctions regime allowing Russian Railways to pay Lithuanian Railways for the rail transit of individuals between the Kaliningrad region and other parts of Russia. The license "excludes the transit of goods." The license expires April 13, 2025.
China condemned the recent U.S. inclusion of 12 Chinese companies on the Entity List for their aid to Russia's war against Ukraine. All 12 companies were accused of backing Russia's military or defense industrial base (see 2304120039). A spokesperson for China's Ministry of Commerce said the U.S. has no basis in international law to carry out the sanctions, and the move is a "typical unilateral sanction" that damages the legitimate rights of Chinese companies, according to an unofficial translation. The spokesperson called for the immediate cessation of the sanctions, adding that China will safeguard the interests of its companies.