February saw a continuing focus on Russia. First, the Treasury Department’s Office of Foreign Assets Control (OFAC), in conjunction with the State Department, sanctioned over 500 individuals and entities – the “largest number...more
3/15/2024
/ Bureau of Industry and Security (BIS) ,
China ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Employees ,
Entity List ,
Exports ,
Foreign Persons ,
Fraud ,
Iran ,
ITAR ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
SDN List ,
Technology ,
U.S. Treasury ,
UK ,
Ukraine
December saw continuing enforcement actions involving Russia. First, the Treasury Department’s Office of Foreign Assets Control (OFAC) settled investigations into apparent sanctions violations by a New York-based insurance...more
1/10/2024
/ Commodities ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement ,
Executive Orders ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Financial Institutions (FFI) ,
International Trade ,
Maritime Transport ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Agenda ,
Regulatory Reform ,
Russia ,
Sanction Violations ,
U.S. Commerce Department ,
U.S. Treasury
You are reading the November 2023 Update of the Bass, Berry & Sims Enforcement Roundup, where we bring notable enforcement actions, policy changes, interesting news articles, and a bit of our insight to your...more
12/8/2023
/ Bureau of Industry and Security (BIS) ,
Cryptocurrency ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Entity List ,
Export Controls ,
FinCEN ,
Foreign Corrupt Practices Act (FCPA) ,
International Trade ,
NGOs ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Russia ,
Sanction Violations ,
U.S. Treasury
July saw two noteworthy Russia enforcement actions. A Russian national was arrested in Estonia and extradited to the United States after being charged with conspiring to procure U.S.-origin technologies and ammunition on...more
8/17/2023
/ Antiboycott Requirements ,
China ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
Foreign Entities ,
Foreign Nationals ,
General Licenses ,
Iran ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
U.S. Commerce Department ,
U.S. Treasury ,
Ukraine
You are reading the March 2023 edition of the Bass, Berry & Sims Enforcement Roundup, where we bring notable enforcement actions, policy changes, interesting news articles, and a bit of our insight to your inbox.
March saw...more
4/21/2023
/ Belarus ,
Criminal Convictions ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Fraudulent Procurement ,
Illegal Activity ,
International Trade ,
Iran ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
Settlement ,
U.S. Treasury
The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes new U.S. sanctions and...more
6/2/2022
/ Aviation Industry ,
Blocked Person ,
Bureau of Industry and Security (BIS) ,
Economic Sanctions ,
Export Administration Regulations (EAR) ,
Export Controls ,
General Licenses ,
Russia ,
Sanction Violations ,
SDN List ,
Travel Restrictions ,
Ukraine
• Actions underscore long arm of U.S. sanctions jurisdiction
• Voluntary disclosures and cooperation can lead to significant penalty reductions
• Facilitation of a violation is treated the same as a direct...more
3/5/2020
/ Civil Liability ,
Civil Monetary Penalty ,
Cooperation ,
Economic Sanctions ,
Enforcement Actions ,
General Licenses ,
Global Terrorism Sanctions Regulations (GTSR) ,
Jurisdiction ,
Myanmar ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
SDN List ,
Shipping ,
Telecommunications ,
Voluntary Disclosure
Report on Supply Chain Compliance 3, no. 2 (January 23, 2020) -
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the primary U.S. government agency that administers U.S. economic sanctions, was busy...more
1/24/2020
/ Aircraft Sales ,
Airlines ,
Apple ,
Aviation Contracts ,
Civil Monetary Penalty ,
Compliance ,
Cross-Border Transactions ,
Economic Sanctions ,
Foreign Narcotics Kingpin Sanctions Regulations (FNKSR) ,
Foreign Suppliers ,
Non-US Entities ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Risk Assessment ,
Risk Mitigation ,
Sanction Violations ,
Screening Procedures ,
SDN List ,
Settlement ,
Slovenia ,
Software ,
Sudan ,
Supply Chain ,
Ukraine ,
Voluntary Disclosure
• $2 million penalty against Exxon overturned
• Court concluded that OFAC failed to provide clear notice of violative conduct
• Companies are at risk when acting in context of ambiguous agency guidance
At the end of...more
1/22/2020
/ Civil Monetary Penalty ,
Corporate Counsel ,
Economic Sanctions ,
Enforcement Guidance ,
Executive Orders ,
Exxon Mobil ,
International Emergency Economic Powers Act (IEEPA) ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Prohibited Transactions ,
Reversal ,
Rosneft ,
Russia ,
Sanction Violations ,
SDN List ,
Ukraine ,
Vacated
• Penalties imposed for violations of U.S. sanctions on Russia and Ukraine
• Violations identified during pre-acquisition due diligence on contractor
• Denied persons screening was conducted but missed prohibited...more
12/13/2018
/ Blocked Entities ,
Due Diligence ,
Economic Sanctions ,
Exporters ,
Federal Contractors ,
Foreign Acquisitions ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Policies and Procedures ,
Risk Assessment ,
Russia ,
Sanction Violations ,
Screening Procedures ,
SDN List ,
Ukraine ,
Voluntary Disclosure
• Ericsson Caused Violation by Having U.S. Party Ship Equipment to Sudan
• U.S. Employee Facilitated Sudan Business
• OFAC Expects Parties Conducting International Business to Have Robust Compliance Processes
In June...more
• 7-year denial order imposed against Chinese telecommunications equipment maker
• Denial order strictly limits business with company
• Action comes as U.S. imposes other trade restrictions on China
On April 16, U.S....more
4/23/2018
/ CFIUS ,
China ,
Economic Sanctions ,
Export Controls ,
Exports ,
Mergers ,
National Security ,
Sanction Violations ,
Semiconductors ,
Telecommunications ,
Trump Administration
•Many medical products can be exported to Iran – so long as a license is obtained
•Imposition of successor liability underscores importance of pre-transaction due diligence
•OFAC enforcement, as in the past, continues...more
1/10/2018
/ Aggravating Factors ,
Distributors ,
Due Diligence ,
Enforcement Actions ,
Exports ,
Iran Sanctions ,
Licenses ,
Manufacturers ,
Medical Supplies ,
Mergers ,
Mitigating Factors ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Sanction Violations ,
Statute of Limitations ,
Subsidiaries ,
Successor Liability ,
Voluntary Disclosure
On July 20, 2017, the U.S. Treasury Department Office of Foreign Assets Control (OFAC) announced that ExxonMobil (Exxon) must pay a $2 million penalty for violating U.S. sanctions on Russia. On the same day, Exxon responded...more
It is rare for companies to go to court to fight penalties imposed by the Office of Foreign Assets Control (OFAC) for violations of U.S. sanctions. It is even more rare for a court to make any sort of finding against the...more
6/24/2017
/ Administrative Procedure Act ,
Appeals ,
Arbitrary and Capricious ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Remand ,
Sanction Violations ,
Subpoenas
On June 8, the Office of Foreign Assets Control (OFAC) announced a monetary penalty against American Honda Finance Corporation (American Honda) for alleged violations of the Cuban Assets Control Regulations (CACR), the...more
On March 7, 2017, Chinese telecommunications company, Zhongxing Telecommunications Equipment Corp. (ZTE), signed on to three separate settlement agreements with the United States, agreeing to pay $892 million for violations...more
- Canadian bank pays penalties for U.S. dollar transactions involving Cuba and Iran
- Bank receives Finding of Violation – but no penalty – for violations by European subsidiaries
- Disclosure and cooperation...more
1/30/2017
/ Banks ,
Canada ,
Cuba ,
Cuban Assets Control Regulations (CACR) ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Financial Transactions ,
Foreign Subsidiaries ,
Imports ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement
Lest U.S. companies think that Cuba and Iran are entirely open for business, a U.S. government settlement announced earlier this month with National Oilwell Varco, Inc. (NOV), a U.S. oilfield services company, will serve as a...more
11/29/2016
/ Civil Monetary Penalty ,
Cuba ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Iran ,
Iran Sanctions ,
Non-Prosecution Agreements ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement ,
UK