Companies involved in sanctions compliance should closely communicate with regulators during the COVID-19 pandemic and carefully document compliance procedures during work-from-home operations, according to Nicole Sayegh Succar, a trade lawyer with Crowell & Moring. Those steps could minimize scrutiny and potential sanctions penalties after the pandemic subsides, Succar said during an April 2 webinar hosted by the law firm.
The U.S. will continue sanctions against South Sudan due to the country’s human rights abuses, violence and “obstruction of humanitarian operations,” the White House said April 1. The sanctions were renewed for one year beyond April 3, 2020.
The United Nations Security Council renewed the mandate of the panel of experts advising the committee that oversees North Korea sanctions, the UN said March 31. The mandate, which was renewed until April 30, 2021, allows the panel to submit reports to the UN about North Korea’s compliance with international sanctions and oversee UNSC sanctions actions.
The European Union should “move quickly” to form its sanctions regime against human rights abuses amid the global COVID-19 pandemic, members of the European Parliament said in a March 27 letter to European Commission Vice President Josep Borrell. The members said the EU “cannot forget” global human rights abuses, and stressed the importance of including the name “Magnitsky” in the sanctions legislation, similar to the U.S. and Canada. The EU began working on a human rights sanctions regime in December (see 1912100046).
The Trump administration should issue “broad licenses” to medical companies and create dedicated channels for industry to export medical goods to Iran during the COVID-19 pandemic, former Vice President Joe Biden said April 2. Although the Treasury's Office of Foreign Assets Control already has broad general licenses that allow exemptions for humanitarian exports, Biden said they are not effective. “In practice, most governments and organizations are too concerned about running afoul of U.S. sanctions to offer assistance,” Biden said. “As a result, our sanctions are limiting Iran’s access to medical supplies and needed equipment.”
Expectations for sanctions compliance are increasing amid the COVID-19 pandemic as both U.S. and United Kingdom agencies continue sanctions enforcement, trade lawyers said. The U.S. Treasury Department Office of Foreign Assets Control and the U.K. Office of Financial Sanctions Implementation continue to issue sanctions, pursue enforcement and expect heightened due diligence from industry, the lawyers said, “You've got OFAC doing its continuing expansion of U.S. sanctions and … you've got increasing pressure from even the U.K.,” said David Wolff, a trade lawyer with Crowell & Moring, speaking during an April 2 webinar hosted by the law firm. “The regulatory expectations, if anything, are getting worse.”
INSTEX, the European payment system designed to allow countries to trade with Iran despite U.S. sanctions (see 1912020025), completed its first transaction, France, Germany and the United Kingdom said in a March 31 notice. The countries said the mechanism successfully facilitated exports of medical goods from Europe to Iran. INSTEX will now “work on more transactions,” the notice said. The U.S. has warned Europe that anyone associated with INSTEX could face sanctions (see 1905300035).
The Commerce Department Bureau of Industry and Security postponed its April export control seminar in Pennsylvania due to the COVID-19 pandemic, BIS said in a recent notice. The seminar, originally planned for April 15-16, will be rescheduled, BIS said.
The State Department and the Commerce Department issued notices clarifying that they are abiding by a March court order that blocked the transfer of 3D printing software from the U.S. Munitions List to the Commerce Control List (see 2003090029). Exporters of the software “must continue to treat such technical data and software as subject to control on the USML,” State said. Commerce stressed that all 3D printing-related license requests should be directed to the State Department.
Australia placed export controls on non-commercial shipments of personal protective equipment, alcohol wipes and hand sanitizer that are essential to combating the COVID-19 pandemic, according to a March 30 notice from the Australian Border Force. The controls, which took effect March 30, also allow Australia’s Home Affairs minister to “determine additional goods” subject to export controls. Australia listed several exemptions to the controls, which allow exports to a person's relatives, for their personal use; exports through humanitarian organizations for non-commercial uses; and exports by an “Australian manufacturer of the goods,” the notice said. The Border Force also listed several other exemptions that allow “legitimate exporters to continue to trade in goods essential to combating the pandemic.”