The Office of Foreign Assets Control on Jan. 24 extended two Ukraine-related licenses. General License 13Q, which replaces 13P "Authorizing Certain Transactions Necessary to Divest or Transfer Debt, Equity, or Other Holdings in GAZ Group," and General License 15K, which replaces 15J "Authorizing Certain Activities Involving GAZ Group." These licenses were set to expire Jan. 26, via a previous extension issued Dec. 23, 2020. The new licenses are being extended for 90 days, through 12:01 a.m. Eastern Daylight Time, April 27. OFAC also updated its frequently asked questions related to the updated GLs.
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The House’s America Competes Act of 2022 proposes a host of export control and sanctions provisions, including new restrictions on exports of electronic waste-related goods, designations targeting China and a repeal of the sunset of a human rights sanctions authority. The bill, unveiled this week as the response to the Senate’s U.S. Innovation and Competition Act, would also require the Biden administration to conduct “periodic” reviews of its export control lists to better protect critical technologies and would urge the administration to reexamine U.S. export policies for countries that supply weapons to terrorist organizations.
The Biden administration this week previewed its plan to impose a “massive” set of export controls and sanctions on the Russian economy if the country further invades Ukraine, including measures to cut off Russian companies from both U.S. and foreign-produced technology inputs. The export restrictions could include an expansion of the Commerce Department’s foreign direct product rule, officials said, and would specifically target several of Russia’s “key” technology sectors, including its defense, aerospace, quantum computing and artificial intelligence industries.
Although the Department of Justice’s China’s initiative (see 2012030033) is still likely an agency priority, the program has slowed under the Biden administration and may lead to less export control and sanctions-related prosecutions, said George Pence, a trade lawyer with Akin Gump. Pence, speaking during a Jan. 20 webinar hosted by the law firm, said he thinks “criminal export and sanctions prosecutions are along for the ride but are not driving the China initiative.”
Rep. Gregory Meeks, D-N.Y., introduced a version of a bill that would impose a host of sweeping new sanctions against Russia in the event it invades Ukraine, including new restrictions on Russian debt and broad sanctions against the country’s extractive industries. The bill, introduced in the House last week, also would authorize certain sanctions against the Nord Stream 2 gas pipeline, designate Russian financial institutions and expedite military assistance for Ukraine, similar to its companion bill in the Senate (see 2201120036).
The Treasury Department's Financial Crimes Enforcement Network is seeking public comments on a potential pilot program that would give financial institutions more freedom to share suspicious activity reports, according to a Jan. 24 notice. The program would allow institutions to share SARs with their foreign branches, subsidiaries and affiliates to better combat illicit finance and transactions that may violate U.S. sanctions or anti-money laundering regulations. Institutions are currently only allowed to share with their head offices or controlling companies. Comments on the proposed program are due March 28.
Akin Gump broadened its international trade practice with the addition of two former U.S. government officials and sanctions and export controls lawyers, the firm announced. Elyse Martin, former official at the Treasury Department's Office of Foreign Assets Control, and George Pence, former assistant U.S. attorney in the Central District of California, have joined the firm as senior counsel. While at OFAC, Martin served as the assistant director for Regulatory Affairs for two years and for over a year as chief of sanctions program implementation in the Sanctions Compliance and Evaluation Division, the firm said. As assistant U.S. attorney, Pence worked on investigations and prosecutions pertaining to export crimes, terrorism and other national security matters, it said.
The Financial Crimes Enforcement Network is adjusting its civil monetary penalties for inflation, the agency said in a notice. The new amounts include higher maximum penalties for various recordkeeping and banking violations associated with illegal funds transfers, which can sometimes violate U.S. sanctions. The changes take effect Jan. 24.
The Office of Foreign Assets Control designated Hezbollah-affiliated financial facilitator Adnan Ayad to its Specially Designated Nationals List on Jan. 21. Ayad’s business partner Adel Diab was designated on Jan. 18 (see 2201180011). According to OFAC, Ayad is a Hezbollah member and businessman who, with Diab, operates an international network of companies. The two have used their Lebanon-based company, Al Amir Co. for Engineering, Construction, and General Trade SARL, to raise funds and launder money for Hezbollah.