The Directorate of Defense Trade Controls updated its Defense Export Control and Compliance licensing system (see 2002190025) to reflect changes made by the recent transfer of gun export controls from the State Department to the Commerce Department (see 2001170030), according to an April 3 notice. The change “only applies to new license submissions,” the DDTC said.
The Treasury’s Office of Foreign Assets Control extended the expiration date for a Venezuela-related general license, OFAC said in an April 3 notice. General License No. 13E, which replaces No. 13D (see 1910170057), authorizes certain transactions involving Nynas AB, a joint venture between biofuel producer Neste and Petroleos de Venezuela, Venezuela's state-run oil company. OFAC extended the expiration because Nynas is discussing with OFAC a “proposed corporate restructuring” that could “result in significant changes to Nynas AB’s ownership and control,” the notice said, and the expiration will “afford additional time to complete this engagement.” The license, which was scheduled to expire April 14, will now expire May 14.
International sanctions should be lifted to prevent hunger crises in countries significantly impacted by the COVID-19 pandemic, Hilal Elver, United Nations special rapporteur on the right to food, said March 31. Suspended sanctions could help Syria, Venezuela, Iran, Cuba and Zimbabwe, which are “already under stress and cannot handle the additional burden of sanctions,” Elver said. Sanctions may also be disproportionately impacting civilians in Yemen, South Sudan, Gaza and Syria, Elver said. A UN official previously called for the removal of global sectoral sanctions (see 2003250010).
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).