Law Firm Highlights Key Sanctions Provisions Included, Left Out of NDAA
The fiscal year 2023 National Defense Authorization Act includes several sanctions and export control related provisions, including measures that would require more sanctions reporting by the Biden administration, Morrison Foerster said in a recent client alert. One provision will require the president to submit a periodic report to Congress listing foreign people and entities knowingly participating in significant transactions involving Russian gold, while another will require the director of national intelligence to submit semiannual reports on the effects of U.S. sanctions against Russia. Another provision will require the DNI to study ways to provide “enhanced intelligence support” for export controls and foreign investment screening, the alert said.
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The law firm also pointed to several notable provisions that didn’t make it into the final bill, including one that would have directed the president to impose secondary sanctions on foreign entities knowingly violating the Russian oil price cap (see 2211230047). Another provision would have required U.S. financial institutions to “take ‘all actions necessary and available’ to cause their subsidiaries to comply with sanctions against Russia and Belarus that are applicable to U.S. financial institutions,” the law firm said.
“This is not to say that the sanctions provisions that did not make it into the NDAA will never become law; it is possible that other legislation including versions of the sanctions measures discussed above will be passed in the future,” the firm said. “For that reason, it is important that the international business community continue to keep its eyes on Congress as it contemplates sanctions-related legislation.”