The Office of Foreign Assets Control reached a settlement with American Express National Bank for $430,500 over apparent violations of the Foreign Narcotics Kingpin Sanctions Regulations, according to a July 15 OFAC notice. Over the course of two months, OFAC said, Amex processed transactions for a card holder who was designated in connection with illegal drug distribution and money laundering.
The Biden administration should reverse a 2020 rule that transferred export controls over certain defense items from the State Department to the Commerce Department (see 2001170030), said Sen. Elizabeth Warren, D-Mass. She said the transfer has allowed the U.S. to approve more weapons sales overseas, contributing to violent crime and corruption.
The Bureau of Industry and Security is conducting a review of the types of semiconductors and chipmaking equipment that can be exported to China to determine whether it needs to tighten those restrictions, BIS Undersecretary Alan Estevez said, speaking during a Senate Banking Committee hearing last week. He said the agency is considering tightening the “cut-off point” of semiconductors that are subject to strict export licensing requirements.
The U.K.'s House of Commons Library released two research briefs reviewing energy imports from Russia and sanctions on that country. "Imports of energy from Russia" covers the U.K.'s reliance on Russian energy, Russian energy's impact on international energy markets, restrictions on Russian energy imports, and data on Russian energy reliance. "Sanctions against Russia" reviews U.K. sanctions on Russia before 2022, as well as the U.K.'s response to Russia's recent aggression toward Ukraine, coordination of sanctions with other major countries and secondary sanctions.
Shipping giant Mediterranean Shipping Co. continues to accept deliveries of food, medicine, health-care equipment and humanitarian aid from Russia, the company confirmed in response to questions from Bloomberg. MSC is attempting to draw a balance between cutting business ties with Russia following its invasion of Ukraine and continuing to provide essential goods to the nation, the company told Bloomberg, the news outlet reported July 14.
The England and Wales High Court adjourned a trial involving Russian oligarch Oleg Deripaska, only recently releasing the May 6 judgment publicly. Deripaska was sanctioned by many of the world's leading economies in response to Russia's invasion of Ukraine. As a result, the defendant cannot pay his lawyers for legal representation in the present case, so the legal team is "coming off the record." The lawyers applied to adjourn to avoid an unfair trial. In vacating the case, Justice Sara Cockerill ruled she is "satisfied in this significant hard-fought and complex case a fair trial would not be possible -- however dim a view one takes of Mr Deripaska's past actions." The case involves a long-running dispute over alleged breaches by Deripaska, with Navigator Equities obtaining an arbitral award against the oligarch.
The Office of Foreign Assets Control has issued one new and three updated general licenses related to Russia alongside an update to OFAC's Frequently Asked Questions and a Food Security Fact Sheet, according to a July 14 notice.
A potential provision in the bipartisan China package (see 2207120049) that would create an outbound investment screening mechanism received more opposition (see 2206280051 and 2201140038) this week, including from lawmakers on the Senate Banking Committee and former U.S. investment screening officials. While opponents of the provision say some form of outbound screening may eventually be necessary to further restrict sensitive technology transfers to China, they also said the current wording is too broad and leaves too many questions unanswered.
The U.K. amended entries under its Russia and Belarus sanctions regime, the Office of Financial Sanctions Implementation said in a pair of notices July 12. Under the Russia sanction list, OFSI amended 16 entries and corrected those for Vadim Anatolyevich Lukashevich and German Valentinovich Belous.
Eight European countries not in the EU aligned themselves with a recent EU sanctions decision on Iran, the European Council announced. In June, the council amended the list of individuals and entities subject to the sanctions regime on Iran. In response, North Macedonia, Montenegro, Albania, Ukraine, Moldova, Iceland, Liechtenstein and Norway aligned with the decision, ensuring that the sanctions will be imposed by their regulatory authorities.