Sheppard Mullin Sanctions and Export Controls Attorneys is an author at Global Trade Law Blog.
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SoL Long to Short Limits: The Sequel — A Decade of Recordkeeping and Enforcement
On July 22, 2024, the Department of Treasury, Office of Foreign Assets Control (OFAC) announced a significant planned extension to its recordkeeping requirements, which will increase the retention period from five to ten years. OFAC expects to publish an interim final rule to provide an opportunity to comment. The change will increase compliance obligations for entities engaged in transactions subject to U.S. sanctions.
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Now Including the Kitchen Sink: Expansion of Export Controls on Russia Adds Restrictions on Low-Level Items and Software
Last year, we published an update on BIS’s foray into prohibiting EAR99 items for export to Russia and Belarus. We noted (somewhat in jest) that kitchen sinks may one day be added. Well, that day has come. Stainless steel kitchen sinks are officially prohibited for export to Russia and Belarus.
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OFAC Tightens Russia Sanctions; BIS Cracks Down on Diversion
On June 12, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced new measures targeting Russia’s financial infrastructure, including:
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Walking the Tightrope: EU’s Sanctions Enforcement Directive Puts Violators on Notice
In a bold move to tighten its sanctions enforcement, the EU rolled out Directive 2024/1226, establishing minimum rules for defining criminal offenses and penalties related to the violation of EU sanctions. Effective May 19, the Directive mandates Member States to incorporate its provisions into their national legislation within 12 months.
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Say SoL Long to Short Limits: Doubling Down on the Sanctions Statute of Limitations
Effective April 24, the statute of limitations (“SoL”) under the International Emergency Economic Powers Act (“IEEPA”) and the Trading with the Enemy Act (“TWEA”) has been extended from five to ten years. It would have been easy to miss this change, buried within a supplemental emergency appropriation bill (H.R. 815) signed into law by President Biden on April 24, 2024, but its impacts will be profound for entities facing internal or government investigations for sanctions violations.
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The End of the World Order and the Rise of Trade Regulation
Author and futurist Peter Zeihan recently asserted that President Joe Biden has presided over “the most protectionist administration the United States has had in at least a century.” And Donald Trump reportedly plans to double down on protectionism if elected in November 2024. By the way, Zeihan is also the guy who predicts that The End of the World is Just the Beginning. His theory is that the global economic and political order the United States built and maintained since WWII is collapsing.
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E(U)xterritoriality of EU Sanctions: The No Russia Clause
The EU is going extraterritorial, and it is doing so through private contract. It is a pretty neat trick.
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Department of Commerce Initiates Investigation into Chinese-Made “Connected Vehicles”: Potential Prohibitions on Certain Information and Communications Technology and Services
On February 29, 2024, the Biden administration issued a statement addressing the national security risks to the U.S. auto industry directing the Department of Commerce to conduct an investigation into Chinese made “connected vehicles” (CVs).
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Guidance to Foreign Companies on Export Controls and Sanctions: Departments of Commerce, Treasury, and Justice Issue Tri-Seal Compliance Note on Foreign Based Persons’ Obligations to Comply with U.S. Sanctions and Export Control Laws
On Wednesday, March 6, 2024, the Department of Commerce, Department of the Treasury and Department of Justice issued another Tri-seal Compliance Note, focusing this time on the obligations of foreign based persons complying with U.S. sanctions and export control laws as well as recent enforcement actions. This may signal more scrutiny on the compliance of foreign companies which we have discussed here.
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The EU Commission Gets Serious About FDI Screening
As part of its European Economic Security Package, the European Commission (‘Commission’) has recently proposed a number of legislative proposals and White Papers intended to better protect Europe’s strategic interests. We have covered the wider initiative here.
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