A lawyer for Turkish government-owned bank Halkbank made the case to the U.S. Court of Appeals for the 2nd Circuit that it is immune from prosecution due to protections under the Foreign Sovereign Immunity Act, in an April 12 oral argument. Simon Latcovich of Williams & Connolly asserted that the government had no jurisdiction over the bank since the bank is owned by the Turkish government and that the FSIA does not extend jurisdiction over sovereign states for criminal cases. Latcovich also claimed that even if the FSIA allowed for this jurisdiction, Halkbank would still be exempt from prosecution under common law. His argument follows that if the courts were to find that immunity for sovereign states was not extended to criminal cases under the FSIA, this would erode the congressional mandate of the act without a word from the body itself.
The Australian Sanctions office will hold a virtual information session later this month to provide an overview of its sanctions regimes, permit application processes, the penalties it administers and guidance for complying with Australia’s sanctions, it said April 13. The office will also take questions during the April 29 session, 11 a.m. local time and 9 p.m. EDT.
The State Department issued updated guidance on its implementation of the amended Protecting Europe's Energy Security Act, which requires the agency to report to Congress and potentially sanction foreign people or entities involved in Nord Stream 2, TurkStream and other gas pipeline projects. The April 9 guidance outlines the “range of activities captured under” the legislation and describes the various sanctions exceptions in the bill, including exceptions for activities that “are intended for the safety and care of the crew aboard the vessel” and that are meant to avoid harming the environment. The guidance also explains the bill’s wind-down provision for people and entities that are subject to sanctions.
Several federal agencies are seeking comments to determine whether an interagency risk management guidance supports banks’ compliance with sanctions and anti-money laundering requirements, a joint notice said April 12. The Supervisory Guidance on Model Risk Management, developed by the Federal Reserve board of governors and the Office of the Comptroller of the Currency, describes the elements of effective bank risk management programs and is meant to help banks better comply with U.S. sanctions requirements, among other regulations. The agencies are asking for feedback on how well the guidance helps banks comply with Office of Foreign Assets Control sanctions. “The agencies seek this information to enhance their understanding of bank practices in these areas and determine whether additional explanation or clarification may increase transparency, effectiveness, or efficiency,” said the notice, which was issued by the OCC, the Federal Reserve board of governors, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Financial Crimes Enforcement Network. Comments are due June 11.
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Huawei doesn’t expect to make rapid progress with President Joe Biden's administration on U.S. sanctions, Rotating Chairman Eric Xu told analysts April 12 in a streamed presentation. Huawei faces challenges due to the COVID-19 pandemic, geopolitics and U.S. sanctions, Xu said. Meanwhile, Biden hosted executives from AT&T, Google, Intel, automakers and other tech companies for a virtual discussion of supply chain issues. Xu said the U.S. is responsible for supply disruptions.
The State Department’s Directorate of Defense Trade Controls issued new guidance and frequently asked questions for the increased export controls against Russia announced in March (see 2103170022). The April 12 guidance provides a summary of the changes to the International Traffic in Arms Regulations and answers common questions about impacts to export licenses, license reviews and which activities are caught by the restrictions.
Several countries aligned with the European Union's extension on two sets of sanctions on Ukrainian individuals and entities for undermining the Eastern European nation's sovereignty. The EU found Montenegro, Albania, Norway, Ukraine and Moldova aligned with its move to extend certain sanctions until March 6, 2022. Montenegro, Albania and Norway aligned with the action to extend until Sept. 15, 2021, the measures on 14 individuals and 13 Ukrainian entities.
The European Council extended until April 13, 2022, its sanctions on Iran for the nation's serious human rights violations, a press release said. The EC also added eight individuals and three entities to the sanctions list for their roles in the violent response to November 2019 protests in Iran, bringing the totals to 89 individuals and four entities. The sanctions consist of a travel ban and an asset freeze along with a ban on exports to Iran of equipment that can be used for human rights violations and equipment for monitoring telecommunications.
The Office of Foreign Assets Control on April 12 issued revised guidance for submitting certain license applications and for the agency’s Sudan sanctions program. In frequently asked questions 97 and 98, OFAC provided guidance for how exporters can submit license applications under the Trade Sanctions Reform and Export Enhancement Act of 2000 and what information should be included in those applications. In FAQ 500, OFAC clarified that exporters of humanitarian goods, including agricultural commodities and medicine, don’t need an OFAC license to ship to Sudan. In FAQ 836, the agency detailed which Sudanese sanctions were lifted as a result of the December 2020 U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015 and 2101140018). OFAC stressed that the revocation of the sanctions doesn’t affect agency enforcement investigations into violations that took place before the sanctions were revoked.