A senior Treasury Department official urged banks in the United Arab Emirates to look out for Russia-related sanctions evasion attempts, warning they could face steep penalties for poor due-diligence. Wally Adeyemo, Treasury’s deputy secretary, said the banks must be “exceedingly cautious in handling any Russia-related businesses.”
Liability under the U.K.'s Russia sanctions regime may be determined even when an offending party wasn't aware of or had no reasonable suspicion of the breach, so companies should review their internal sanctions compliance to ensure they have "comprehensive processes and procedures in place" to avoid sanctions risk, global law firm Sidley Austin said in a guidance.
A bipartisan group of senators last week introduced a bill that could place new controls on certain exports of U.S. personal data to foreign companies and governments. The Protecting Americans’ Data From Foreign Surveillance Act would require the Commerce Department, along with other agencies, to identify “categories of personal data” that could harm U.S. national security if they were exported, and to place export restrictions on those items.
The Bureau of Industry and Security on June 24 suspended the export privileges of three Russian airlines for violating U.S. export controls against Belarus. The agency issued 180-day temporary denial orders for Nordwind Airlines, Pobeda Airlines and Siberian Airlines, BIS said, banning all three airlines from participating in transactions subject to the Export Administration Regulations.
The EU General Court in a June 22 judgment rejected the application from businessman George Haswani to annul the European Council's decision maintaining his listing on the Syria sanctions regime, according to an unofficial translation. The court ruled the council gave sufficient precise and consistent evidence to show Haswani is an influential businessman in Syria given his interests in HESCO Engineering and Construction. This allowed the court to rule his listing should be maintained because Haswani failed to rebut the presumption that he is tied to the Syrian regime.
China's President Xi Jinping criticized global sanctions in a June 22 speech at the opening ceremony of the BRICS Business Forum, the Chinese Ministry of Commerce said, according to an unofficial translation of a press release. Appearing virtually, Xi said sanctions are a "boomerang" and a "double-edged sword" that politicize and weaponize the global economy to impose "arbitrary" restrictions that ultimately harm others. BRICS member states are Brazil, Russia, India, China and South Africa.
The State Department’s Directorate of Defense Trade Controls reminded industry that its Defense Export Control and Compliance System registration and licensing applications will be unavailable due to a system upgrade (see 2206140014). The application will be down from 2 p.m. EDT June 24 through 8 a.m. EDT June 27 as the agency releases its updated Licensing 2.0 application.
Congress should ensure existing and new trade agreements promote “responsible” collaboration in emerging technologies, including through targeted export controls, said Charles Robinson, an IBM quantum computing executive. In June 22 testimony to the Cybersecurity, Infrastructure Protection, and Innovation Subcommittee of the House Homeland Security Committee, Robinson said lawmakers should “support the tailoring of export controls” to keep sensitive technologies “out of the hands of nefarious actors.” He specifically mentioned quantum technologies, which are particularly sensitive and “present possible dual-use concerns.” Industry groups and companies have urged Commerce to avoid broad, unilateral controls on quantum technologies and other emerging technologies, which they say could stifle U.S. competitiveness and innovation (see 2204140033, 2205100022 and 2202180013).
The U.K. updated its guidance on the sanctions relating to the provision of insurance and reinsurance services over aviation and space goods and technology to a person or entity connected with Russia or for use in Russia. The Office of Financial Sanctions Implementation said that the restrictions "would not apply where the insurance is for the benefit of the non-Russian owner of the items, rather than their user or operator. It also doesn't apply where the items either remain in Russia as the result of the termination of a lease and against the lessor’s will or are flown out of Russia in the process of returning them to their owner.
The Financial Action Task Force recently updated its list of jurisdictions with “deficiencies” in combating terrorism financing, weapons proliferation and other sanctions-related issues, the Financial Crimes Enforcement Network said June 23. The FATF removed Malta from the list of jurisdictions under increased monitoring and added Gibraltar. It didn’t make any changes to its list of “High-Risk Jurisdictions Subject to a Call for Action,” which includes countries subject to “extensive” U.S. sanctions, such as North Korea and Iran.