Sen. Marco Rubio, R-Fla., reintroduced a bill that could impose “secondary sanctions” on companies doing business with entities that have been sanctioned for Uyghur-related human rights abuse in China’s Xinjiang region. The Sanctioning Supporters of Slave Labor Act, which was also introduced last year (see 2208020061), aims to better hold companies “accountable” for doing business with businesses tied to forced labor, Rubio said July 19. He said companies that “continue to do business with these sanctioned entities can still access the U.S. financial system,” adding that “not only should China’s genocidal regime answer for the crimes they are committing but also the companies that profit from these atrocities.”
The Office of Foreign Assets Control this week sanctioned North Macedonian businessman Jordan Kamcev for corruption, saying he abused his office and laundered money for more than a decade. Brian Nelson, the Treasury Department’s terrorism and financial intelligence undersecretary, said Kamcev pursued a “self-serving agenda at the expense of North Macedonia’s democratic institutions and citizens.”
Three Belgian nationals and one Mexican national were sanctioned by the Office of Foreign Assets Control this week for their role in international drug trafficking, including cocaine and fentanyl. The designations target Othman El Ballouti, Younes El Ballouti and Youssef Ben Azza, three Belgians involved in an international criminal organization that smuggles “significant quantities” of cocaine in shipping containers through Belgium’s Port of Antwerp. OFAC also sanctioned Mexican Franco Tabarez Martinez, a narcotics trafficker in Guerrero, Mexico, who works with sanctioned La Nueva Familia Michoacana drug-trafficking organization and distributes cocaine, fentanyl and methamphetamine to the U.S.
The Office of Foreign Assets Control July 19 again extended a general license that continues to delay an exemption that would authorize certain transactions related to Petroleos de Venezuela, S.A. General License 5L, which replaced GL 5K, now authorizes certain transactions with PdVSA involving an 8.5% bond on or after Oct. 20. The previous license was set to allow those transactions to occur on or after July 20.
The Bureau of Industry and Security sent a final rule for interagency review that would implement export control changes and updates agreed to during the 2022 Wassenaar Arrangement. The rule was sent for review July 18 and would amend the Export Administration Regulations and Commerce Control List.
A State Department official this week denied allegations that the agency has held back sanctions and export controls in an effort to limit damage to the U.S.-China relationship, saying the Biden administration continues to enforce a range of human rights-related trade restrictions against Beijing. But the official also said the administration hasn’t yet imposed mandatory sanctions under the Uyghur Human Rights Policy Act of 2020 and was accused by at least one lawmaker of failing to comply with a congressional subpoena that sought information on sanctions against China.
Lithuania's Ministry of Foreign Affairs issued sanctions guidance July 17 on "detecting and preventing sanctions evasion and circumvention in trade." The document lists factors companies should take into account when conducting risk assessment, "red-flags in Russia or third country related business operations, and guidance on due diligence when "estimating the risk on sanctions evasion and circumvention," and how to determine ownership and what is the "ultimate beneficial owner."
Russian President Vladimir Putin ordered on July 16 that foreign ownership of the Russian subsidiary of French dairy products maker Danone be transferred to the temporary administration of the Federal Agency for State Property Management. The move was made under a presidential decree issued in April in response to sanctions imposed on Russia and allowing the Russian government to place property belonging to individuals and entities from "unfriendly" nations into government administration (see 2304270017). Russia previously seized Carlsberg Sverige Aktiebolag's 98.56% share holding of Baltika Breweries, Hoppy Union's 1.35% ownership of the breweries and Carlsberg Deutschland's 0.09% ownership.
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The Bureau of Industry and Security this week added four European spyware and surveillance technology companies to the Entity List for their role in “threatening” cyber activities. BIS accused all four of “trafficking in cyber exploits used to gain access to information systems, threatening the privacy and security of individuals and organizations worldwide.”