The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a historic $215,988,868 civil monetary penalty against GVA Capital Ltd. (GVA), a venture-capital firm registered in the Cayman Islands...more
6/18/2025
/ Anti-Money Laundering ,
Beneficial Owner ,
Civil Monetary Penalty ,
Due Diligence ,
Economic Sanctions ,
Financial Crimes ,
Fund Managers ,
Investment Management ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Private Equity ,
Russia ,
Sanction Violations ,
SDN List ,
U.S. Treasury ,
Ukraine ,
Venture Capital
On October 28, 2024, the U.S. Department of the Treasury issued a Final Rule establishing the new Outbound Investment Security Program, set to take effect on January 2, 2025. This program, implemented under Executive Order...more
1/2/2025
/ China ,
Critical Infrastructure Sectors ,
Final Rules ,
Foreign Investment ,
Hong Kong ,
Information Technology ,
Intelligence Services ,
Macau ,
National Security ,
Outbound Transactions ,
Semiconductors ,
Surveillance ,
U.S. Treasury
As we wrote previously, the U.S. Department of the Treasury has issued a final rule that takes effect on December 26 that will dramatically raise the Committee on Foreign Investment in the United States (CFIUS) penalties from...more
12/30/2024
/ Artificial Intelligence ,
Bureau of Industry and Security (BIS) ,
Canada ,
CFIUS ,
China ,
Conspiracies ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Export Controls ,
False Statements ,
Financial Institutions ,
Foreign Investment ,
International Trade ,
Investment ,
Iran ,
ITAR ,
Mexico ,
Office of Foreign Assets Control (OFAC) ,
Outbound Transactions ,
Russia ,
Tariffs ,
Trump Administration ,
U.S. Treasury
The Commerce Department issued new guidance for financial institutions on best practices for compliance with the Export Administration Regulations (EAR). Available here, the guidance emphasizes enhanced due diligence, ongoing...more
11/15/2024
/ China ,
Department of Defense (DOD) ,
Department of Justice (DOJ) ,
Duties ,
Economic Sanctions ,
Export Administration Regulations (EAR) ,
Export Controls ,
Foreign Investment ,
Hedge Funds ,
International Trade ,
ITAR ,
NASA ,
North Korea ,
Private Equity ,
Semiconductors ,
Solar Panels ,
U.S. Commerce Department ,
U.S. Treasury ,
US State Departments
The U.S. Commerce Department is soliciting comments on a proposed rule to prohibit importing and selling Vehicle Connectivity System hardware and software designed, developed, manufactured, or supplied by persons owned by,...more
10/11/2024
/ Boycotts ,
CFIUS ,
China ,
Connected Cars ,
Customs and Border Protection ,
Economic Sanctions ,
Export Controls ,
Hong Kong ,
Motor Vehicles ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
PRC ,
Recordkeeping Requirements ,
Red Flags Rule ,
Russia ,
Software ,
Supply Chain ,
Tariffs ,
U.S. Commerce Department ,
US Department of State ,
USTR
On September 13, the Office of the U.S. Trade Representative released a Federal Register notice detailing final modifications to Section 301 tariffs on Chinese imports following its statutorily mandated four-year review. Key...more
The Department of Commerce’s Bureau of Industry and Security (BIS) recently issued an interim final rule implementing licensing requirements for these emerging technology products for export to all foreign countries. See the...more
9/20/2024
/ AUKUS ,
Australia ,
Belarus ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Emerging Technologies ,
Export Administration Regulations (EAR) ,
Export Controls ,
Foreign Direct Product Rule ,
Foreign Governments ,
Foreign Investment ,
ITAR ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Technology ,
U.S. Treasury ,
UK ,
US Department of State
The Bureau of Industry and Security (BIS) issued new guidance to prevent the diversion of controlled items to Russia. This guidance recommends the use of the Trade Integrity Project (TIP) database, which tracks suppliers with...more
8/14/2024
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
Commerce Control List ,
Directorate of Defense Trade Controls (DDTC) ,
Emerging Technologies ,
Export Administration Regulations (EAR) ,
Export Controls ,
Exports ,
Federal Contractors ,
Foreign Adversaries ,
Foreign Investment ,
International Trade ,
National Security ,
NCSC ,
Office of Foreign Assets Control (OFAC) ,
Real Estate Transactions ,
Russia ,
Sensitive Business Information
On June 20, the Department of Commerce’s Bureau of Industry and Security (BIS) for the first time banned a software and cybersecurity company using authority provided by June 2023’s “Protecting Americans’ Sensitive Data from...more
7/15/2024
/ Building Information Modeling (BIM) ,
Bureau of Industry and Security (BIS) ,
Critical Infrastructure Sectors ,
Economic Sanctions ,
Entity List ,
Export Administration Regulations (EAR) ,
Export Controls ,
Foreign Adversaries ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
SaaS ,
Sensitive Business Information ,
Software ,
Technology Sector ,
U.S. Commerce Department ,
U.S. Treasury
On May 10, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an Interim Final Rule (IFR), effective August 8, 2024, that updates the Reporting, Procedures, and Penalties Regulations....more
6/14/2024
/ Antiboycott Requirements ,
Biden Administration ,
Blocked Entities ,
China ,
Customs and Border Protection ,
Department of Justice (DOJ) ,
Export Administration Regulations (EAR) ,
Exports ,
Interim Final Rules (IFR) ,
Israel ,
Office of Foreign Assets Control (OFAC) ,
Reporting Requirements ,
Russia ,
Section 301 ,
Self-Disclosure Requirements ,
Senate Finance Committee ,
Tariffs ,
Turkey ,
U.S. Commerce Department ,
U.S. Treasury ,
Ukraine ,
USTR ,
Uyghur Forced Labor Prevention Act (UFLPA)
What is a CFIUS filing, when should it be made, and what happens if a party fails to file?
In passing the Foreign Investment and Risk Review Modernization Act in 2018, Congress provided CFIUS with increased resources to...more
5/10/2024
/ CFIUS ,
Critical Infrastructure Sectors ,
FIRRMA ,
Foreign Investment ,
Mandatory Declarations ,
National Security ,
NPRM ,
Private Equity ,
Proposed Rules ,
Rulemaking Process ,
Technology
On April 15, the U.S. Department of the Treasury published a proposed rule that would enhance certain Committee on Foreign Investment in the United States (CFIUS or the Committee) procedures and increase CFIUS penalty and...more
5/9/2024
/ AUKUS ,
CFIUS ,
Copyright Infringement ,
Customs and Border Protection ,
Department of Homeland Security (DHS) ,
Economic Sanctions ,
Export Administration Regulations (EAR) ,
FIRRMA ,
Foreign Investment ,
Immigration and Customs Enforcement (ICE) ,
International Emergency Economic Powers Act (IEEPA) ,
ITAR ,
Made in the USA ,
National Security ,
NDAA ,
Prohibited Transactions ,
Proposed Rules ,
Russia ,
U.S. Treasury ,
United States-Mexico-Canada Agreement (USMCA) ,
US Department of State ,
Uyghur Forced Labor Prevention Act (UFLPA)
Ford Motor Company Agrees to $365M Settlement for Attempted Tariff Engineering Ford has agreed to settle the long-standing dispute over the tariff classification of vans imported from 2009 to 2013. At the time, Customs and...more
4/8/2024
/ Antiboycott Requirements ,
Bribery ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
Connected Cars ,
Court of International Trade ,
Customs and Border Protection ,
Economic Sanctions ,
Executive Orders ,
Export Controls ,
Forced Labor ,
Ford Motor ,
Foreign Corrupt Practices Act (FCPA) ,
Information and Communication Technology (ICT) ,
Office of Foreign Assets Control (OFAC) ,
Personal Data ,
SDN List ,
Section 301 ,
Tariffs ,
U.S. Treasury ,
Unfair or Deceptive Trade Practices ,
USDA ,
USTR ,
Uyghur Forced Labor Prevention Act (UFLPA)
On February 24, the two-year anniversary of Russia’s invasion of Ukraine, the Biden administration issued hundreds of new Russia-related export controls and sanctions. The Office of Foreign Assets Control (OFAC) and the...more
3/7/2024
/ Arms Export Control Act ,
Bureau of Industry and Security (BIS) ,
CAFC ,
CFIUS ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Export Controls ,
False Statements ,
Federal Trade Commission (FTC) ,
Foreign Investment ,
International Trade ,
Iran ,
ITAR ,
Labeling ,
Made in the USA ,
Money Laundering ,
National Security ,
National Security Agency (NSA) ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Russia ,
Section 301 ,
U.S. Commerce Department ,
US Department of State ,
USTR
Teradyne, a Massachusetts-based supplier of semiconductor testing equipment, has reportedly pulled $1 billion of manufacturing equipment out of China in 2023 following export controls on advanced computing materials and...more
2/15/2024
/ Bureau of Industry and Security (BIS) ,
China ,
Cloud Computing ,
Economic Sanctions ,
Export Controls ,
IaaS ,
International Trade ,
Know Your Customers ,
Office of Foreign Assets Control (OFAC) ,
Proposed Rules ,
Semiconductors ,
Software ,
U.S. Commerce Department ,
U.S. Treasury ,
Ukraine ,
United Arab Emirates (UAE) ,
US Department of State
On December 11, the Department of Justice, the Department of Commerce’s Bureau of Industry and Security (BIS), the Department of Homeland Security, the Department of State’s Directorate of Defense Trade Controls (DDTC), and...more
1/12/2024
/ Bad Actors ,
Bureau of Industry and Security (BIS) ,
China ,
Compliance ,
Coronavirus/COVID-19 ,
Department of Homeland Security (DHS) ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Executive Orders ,
Foreign Financial Institutions (FFI) ,
Foreign Subsidiaries ,
Iran Sanctions ,
Nasdaq ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Supply Chain ,
Tariffs ,
U.S. Commerce Department ,
Virtual Currency
TRADE TIP OF THE MONTH: New Companies Have More Time To Report Ownership-
The Treasury Department’s Financial Crimes Enforcement Network issued a final rule in late November to delay the deadline for newly created...more
12/11/2023
/ Anti-Money Laundering ,
Beneficial Owner ,
Corporate Transparency Act ,
Cyber Crimes ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Exports ,
False Claims Act (FCA) ,
Financial Crimes ,
FinCEN ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Ransomware ,
Reporting Requirements ,
U.S. Treasury ,
Virtual Currency
1. BIS Releases Texts of New Chip Export Control Rules-
Updating and expanding on rules issued last year, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) released three rules on October 27 targeting...more
11/8/2023
/ Artificial Intelligence ,
Biological-Weapons ,
Bureau of Industry and Security (BIS) ,
Cybersecurity ,
Economic Sanctions ,
Entity List ,
Executive Orders ,
Export Controls ,
Firearms ,
Hamas ,
International Trade ,
Israel ,
Joe Biden ,
National Security ,
NIST ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Semiconductors ,
Supply Chain ,
U.S. Commerce Department ,
Venezuela
On Oct. 4, Deputy Attorney General Lisa Monaco (DAG Monaco) announced a new safe harbor policy for voluntary self-disclosures made in connection with mergers and acquisitions (the Safe Harbor Policy). At the outset of her...more
1. Seagate Technology Gets Largest-Ever BIS Penalty for Sales to Huawei- Seagate Technology LLC recently incurred a $300 million civil penalty from U.S. Department of Commerce’s Bureau of Industry and Security (BIS) due to...more
10/12/2023
/ Beneficial Owner ,
Bureau of Industry and Security (BIS) ,
Corporate Transparency Act ,
Dubai ,
Economic Sanctions ,
Exports ,
FinCEN ,
Foreign Direct Product Rule ,
Foreign Entities ,
Limited Liability Company (LLC) ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Section 301 ,
Smaller Reporting Companies ,
U.S. Commerce Department ,
USTR
Background:
In March 2022, President Joe Biden signed the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) into law, ushering in a new era of enhanced cybersecurity measures. This legislation...more
9/12/2023
/ Covered Entities ,
Critical Infrastructure Sectors ,
Cyber Incident Reporting ,
Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) ,
Cybersecurity ,
Cybersecurity Information Sharing Act (CISA) ,
Healthcare ,
Joe Biden ,
National Security ,
NPRM ,
Public Sector
1. OFAC Imposes Sanctions on Russian Elites Who Were Board Members of Alpha Group-
On Aug. 11, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated four Russian individuals, Petr...more
9/7/2023
/ Boycotts ,
Build America Investment Initiative ,
Bureau of Industry and Security (BIS) ,
Buy America ,
Department of Justice (DOJ) ,
Employment Discrimination ,
Export Administration Regulations (EAR) ,
Exports ,
Foreign Corporations ,
Internal Revenue Code (IRC) ,
Lawful Permanent Residents ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Ownership Interest ,
Parent Corporation ,
Popular ,
Russia ,
SDN List ,
SpaceX ,
Suppliers ,
Virtual Currency
On Aug. 9, President Joe Biden signed an Executive Order providing the framework for investment restrictions in China (including Hong Kong and Macau). The President has tapped the Department of the Treasury to oversee a...more
8/11/2023
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Artificial Intelligence ,
China ,
Coronavirus/COVID-19 ,
Executive Orders ,
Foreign Investment ,
Intelligence Services ,
Joe Biden ,
Microchip Technology ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
PRC ,
Screening Procedures ,
Section 301 ,
Semiconductors ,
Tariffs ,
Technology Sector ,
USTR
On June 16, the U.S. Department of Commerce published a final rule, to be effective July 17, implementing the Protecting Americans’ Sensitive Data From Foreign Adversaries and amending the Securing the Information and...more
7/11/2023
/ Bureau of Industry and Security (BIS) ,
China ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Evasion ,
Foreign Adversaries ,
Information and Communication Technology (ICT) ,
Iran ,
North Korea ,
Russia ,
Supply Chain ,
Technology ,
U.S. Commerce Department ,
U.S. Treasury ,
Unmanned Aircraft Systems ,
Whistleblower Awards
Crypto Asset Company Settles Sanctions Violations for $7.5 million-
On May 1, the U.S. Department of Foreign Assets Control (OFAC) announced a $7.5 million settlement with crypto asset company Poloniex LLC for 65,942 apparent...more
6/14/2023
/ Books & Records ,
CFIUS ,
China ,
Coronavirus/COVID-19 ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Workers ,
Form I-9 ,
Human Resources Professionals ,
International Emergency Economic Powers Act (IEEPA) ,
Know Your Customers ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Securities and Exchange Commission (SEC) ,
Tariffs ,
USTR