The Bureau of Industry and Security is crafting a new interim final rule titled “Export Control Framework for Artificial Intelligence Diffusion.” BIS sent the rule for interagency review on Dec. 9. The agency didn’t release more information.
The Bureau of Industry and Security is adding eight companies to the Entity List that it said are “enabling human rights violations,” including by supplying sensitive technology or military items to the Chinese, Russian and Myanmar militaries. The additions, outlined in a final rule released Dec. 10 and effective Dec. 11, target technology companies and supplier firms based in each of those three countries.
Companies should expect the U.S. government to continue to prioritize enforcement of export controls in the coming months, including by issuing new penalties for export violations, said Matthew Axelrod, the Bureau of Industry and Security’s top export enforcement official. He also revealed that BIS is using a new tool to better screen foreign parties listed on license applications, and he said a recent shift in how the agency uses metrics has allowed it to devote more attention to cases involving the most sensitive technology.
The Financial Crimes Enforcement Network said it won’t be enforcing new reporting requirements under its upcoming beneficial ownership information reporting rule in light of a recent federal court order blocking the rule from taking effect. A statement on FinCEN’s website confirmed that companies are “not subject to liability if they fail to” report while the court order is in force, though those companies can voluntarily submit reports if they wish.
The Bureau of Industry and Security again renewed temporary denial orders for two Russian airlines that it said continue to illegally operate aircraft on flights into and out of Russia. The agency renewed denial orders for Siberian Airlines and Nordwind Airlines for one year from Dec. 6, saying they continue to "act in blatant disregard for U.S. export controls and the terms of previously issued TDOs," including by operating flights between Russia and Thailand, China, Tajikistan, Kyrgyzstan and Turkey. BIS last renewed the orders in December 2023 (see 2312130011).
A Chinese national was charged for his role in a scheme to illegally ship export-controlled "defense-related technical data" to China and illegally supply the Department of Defense with Chinese-origin rare earth magnets for aviation systems and military items, DOJ announced.
The newly released FY 2025 National Defense Authorization Act (NDAA) calls for the executive branch to take several actions related to export controls, including a review of China’s efforts to evade U.S. restrictions, and an assessment of Japan’s possible participation in the Australia-U.K.-U.S. (AUKUS) security partnership.
The U.K.'s Office of Financial Sanctions Implementation added to its sanctions regimes for Russia and the Democratic Republic of the Congo on Dec. 9. OFSI designated Anto Joseph for making funds available in ways that threaten Ukraine, and sanctioned Alain Goetz for contributing to "serious human rights violations" in the DRC.
The Office of Foreign Assets Control this week sanctioned the Houthi National Committee for Prisoners’ Affairs and its leader, Abdulqader Al-Murtadha, for operating prisons in Yemen on behalf of the Houthis, a group labeled by the U.S. as a terrorist organization (see 2401170025). OFAC also sanctioned Fawaz al-Akhras for providing “financial, material, or technological support for” Syrian leader Bashar al-Assad, who reportedly left the country after his regime was overthrown by rebels over the weekend. OFAC said the sanctions mark International Human Rights Day on Dec. 10.
The U.S. sanctioned 28 people and businesses connected to a global gold smuggling and money laundering network based in Zimbabwe, including Kamlesh Mansukhlal Damji Pattni, who leads the network and has bribed government officials, the Office of Foreign Assets Control said. OFAC said the sanctions mark International Anti-Corruption Day and were coordinated with the U.K. and the FBI.