An Illinois-based financial services firm reached a $206,213 settlement with the Office of Foreign Assets Control this week after the company allowed its prepaid reward card programs to be used by people in sanctioned regions, including Iran, Syria, Cuba and the Crimea region of Ukraine. OFAC said Swift Prepaid Solutions’ lack of “comprehensive geolocation controls” led to 12,391 violations of U.S. sanctions programs.
The Office of Foreign Assets Control last week sanctioned Ekaterina Zhdanova, a Russian national who the agency said has laundered money and moved funds on behalf of wealthy Russians using virtual currency.
Companies receiving a subpoena from U.S. sanctions and export control agencies should be “careful not to over respond,” which can lead to more questions from the government and potentially an expanded investigation, Torres Trade Law said in an Oct. 31 client alert. Although businesses receiving a subpoena are generally required to respond, the company should first take time to determine why it received the request and have “internal discussions with relevant personnel to gain an understanding of the situation before submitting a response.” It’s “always a good idea to review the scope of an information request and be deliberate in responding within those parameters,” the firm said.
The U.S. this week announced a spate of new Russia-related sanctions and export controls, targeting people and companies supplying Russia’s military, aiding its defense industrial complex or operating in various Russian financial, metals, government and procurement sectors. The measures include additions to the Commerce Department’s Entity List and more than 200 combined sanctions by the Treasury and State departments targeting businesses in China, the United Arab Emirates and elsewhere for sending export-controlled components to Russia.
The U.S., the U.K. and Canada issued new sanctions this week against Myanmar, targeting various entities and officials with ties to the country’s military regime and its purchase of weapons.
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The Bureau of Industry and Security recently published a set of frequently asked questions to provide guidance for exports to Israel. BIS said it’s able to expedite certain Israel-related export applications in light of the ongoing war in the region. It said the Palestinian territories of Gaza and the West Bank aren't recognized as separate destinations from Israel under the Export Administration Regulations, so items that require a license for Israel also need a license for those Palestinian territories.
The Office of Foreign Assets Control last week announced its second round of Hamas-related sanctions after the terror group’s killings in Israel earlier this month, designating more Hamas-linked officials and financial networks. The agency sanctioned people helping Hamas evade sanctions, their companies and other entities with ties to the group.
The U.S. is planning more actions, including sanctions, to try to cut Hamas off from the global financial system after the terrorist group’s killings in Israel earlier this month, said Brian Nelson, the Treasury Department’s undersecretary for terrorism and financial intelligence. Nelson, speaking during a meeting of the multilateral Terrorist Financing Targeting Center this week in Saudi Arabia, said the U.S. has “much more work to do” to build on its initial response, which has so far included new designations (see 2310180003 and 2310160054) and a new advisory to provide banks with guidance on countering Hamas financing.
Jenner & Block partner Rachel Alpert was tapped to serve as the chief counsel to the Treasury Department's Office of Foreign Assets Control, the firm announced on Oct. 24. Alpert has worked at Jenner & Block since 2021 and has fleshed out the firm's national security, sanctions and export controls practice, along with the human rights and global strategy practice. Her practice centered around export controls and sanctions proceedings under the International Traffic in Arms Regulations, Export Administration Regulations and OFAC regulations, among other things. Prior to working at Jenner & Block, Alpert worked as an attorney-adviser to the State Department and as counsel at Latham & Watkins.