The Office of Foreign Assets Control fined Puerto Rican bank Banco Popular de Puerto Rico (BPPR) about $255,000 for violating U.S. sanctions against Venezuela. BPPR processed 337 transactions on behalf of two government employees of Venezuela, totaling $853,126, OFAC said May 27.
The Bureau of Industry and Security completed an interagency review for a final rule that would make corrections and clarifications to the agency’s Russia and Belarus export controls. The Office of Information and Regulatory Affairs received the rule May 13 (see 2205160005) and completed the review May 26.
The Treasury Department’s decision to end an exemption for certain Russia-related debt payments will cause the Russian government to default, the White House said last week. Treasury announced May 24 it would allow the license to expire, ending transactions necessary for dealings in debt or equity with Russia’s Bank for Development and Foreign Economic Affairs Vnesheconombank, Bank Otkritie Financial, Sovcombank, Sberbank of Russia and VTB Bank (see 2205240054).
The State Department is seeking comments on an information collection related to defense trade registration, the agency said in a notice. The information collection applies to companies registered with the Directorate of Defense Trade Controls and involved “in the business of manufacturing or exporting or temporarily importing defense articles or furnishing defense services.” Comments are due June 27.
The U.S. plans to build on and improve its export controls and investment screening measures to keep China from acquiring sensitive technologies, Secretary of State Antony Blinken said. Blinken, in a speech outlining the Biden administration’s China policy, also urged industry to reassess whether the price of doing business in China is worth the benefits and to work with the administration to push back against Beijing's unfair market practices.
The State Department’s Directorate of Defense Trade Controls recently posted two new frequently-asked-questions under its licensing and registration guidance pages.
The State Department’s Directorate of Defense Trade Controls posted the slide presentations from the April 28 Defense Trade Advisory Group plenary meeting (see 2204290032). The slides include presentations from several DTAG working groups, including a recommendation for a new International Traffic in Arms Regulation exemption, recommendations for clarifications and corrections to certain ITAR definitions, and a report on ITAR-related challenges for controlled unclassified information.
Rep. Michael McCaul, R-Texas, criticized the Bureau of Industry and Security's decision to stop differentiating between emerging and foundational technologies for the purposes of export controls, saying the agency is trying to dodge its statutory responsibility. BIS said last week that the effort to categorize technologies as either emerging or foundational has sometimes delayed the controls, adding that it will instead refer to them as Section 1758 technologies (see 2205200017).
The Office of Foreign Assets Control is designating the international oil smuggling and money laundering network led by Islamic Revolutionary Guard Corps-Qods Force officials, according to a May 25 news release. The network has overseen the sale of "hundreds of millions of dollars’ worth of Iranian oil" for both the IRGC-QF and for Hezbollah, the Treasury Department said. IRGC-QF official Behnam Shahriyari and former IRGC-QF official Rostam Ghasemi head the network, backed by "senior levels of the Russian Federation government and state-run economic organs," Treasury said. The network has acted as a "critical element of Iran’s oil revenue generation," and support for proxy militant groups in the region.
The Office of Foreign Assets Control on May 25 extended a Russia-related General License that authorizes the payment of certain taxes and import fees to Russia despite the sanctions imposed on the Russian central bank, national wealth fund and Ministry of Finance. General License 13A, which replaces General License No. 13 (see 2203030001), extends the authorization through 12:01 a.m. EDT on Sept. 30, 2022, and also authorizes certain activities involving permits, licenses, registrations or certifications. The license was scheduled to expire June 24.