Key Takeaways

  • The proposed regulation would arm the EU with a counterstrike capability if non-EU countries take economic action against a Member State.
  • Where a Member State is subject to economic interferences from non-EU states that affect its legitimate sovereign choices.
  • The European Commission to take some or all of the following measures against the interfering state:
    • Impose tariffs;
    • Implement quotas;
    • Restrict access to EU financial markets; or
    • Reduce intellectual property protections[1]


Continue Reading Arming for a Trade War: The EU Proposes an Unprecedented Anti-Coercion Regulation

Today, in a rare demonstration of bipartisanship, the U.S. Senate passed the Uyghur Forced Labor Prevention Act (the “Act”) – the text of which was a compromise between Senator Marco Rubio (R-Fla.) and Representative Jim McGovern (D-Mass.) – which had already passed the house on Tuesday of this week. Over the years, including most recently in February 2021 (see our post here), we’ve seen different attempts from both chambers to pass legislation prohibiting the imports of goods from Xinjiang or the Xinjiang Uygur Autonomous Region (“XUAR”) – a region in China where, per the U.S. Department of Labor and media reporting, the Chinese government has detained and persecuted more than one million Uyghurs and other Muslim minorities. President Biden has signaled that he will sign this bill into law.

Continue Reading The Uyghur Forced Labor Prevention Act: Congress Finally Takes Action

With Russian forces massing at the Ukrainian border, the U.S. and EU have been warning of severe economic sanctions. While we wait and watch this brinksmanship play out, it is worth considering how businesses, and particularly banks, might prepare for what comes next.

Continue Reading A Ruble Without a Cause: What Economic Sanctions on Russia May Mean for Your Business and Global Finance

How do you tackle the complicated and often seemingly insurmountable problem of human rights abuses around the world? The U.S. Government typically uses a variety of tools: diplomatic efforts, international aid, sanctions, import restrictions on forced labor – the whole carrot-and-stick universe. Enter… Export Controls.

Continue Reading The Intersection of Export Controls and Human Rights: Combating the Misuse of Technologies to Curb Human Rights Abuses

The Treasury Department’s Office of Foreign Assets Control (OFAC) took action last Monday, November 8, 2021, and sanctioned a Latvia-based exchange, Chatex, its associated support network, and two ransomware operators for facilitating financial transactions for ransomware actors. In total, OFAC designated Chatex and 57 cryptocurrency addresses (associated with digital wallets) as Specially Designated Nationals (SDNs). OFAC took this action pursuant to Executive Order 13694, issued in 2015, which provides broad sanctions authority to address the national security threat posed by malicious cyber-actors outside the United States.

Continue Reading OFAC Enforcement Impacts NFTs: As Crypto Enforcement Ramps Up to Combat Ransomware, Robust Compliance is Key

Prior COVID-19 Travel Bans Repealed as of November 8, 2021

On October 25, 2021, President Biden announced the suspension of the COVID-19 travel bans from Brazil, China, India, Iran, Ireland, the Schengen Area, South Africa, and the United Kingdom.  Previously, a National Interest Exception waiver was required.  With this new Proclamation, the White House announced a global vaccination requirement for all adult foreign national air travelers and authorized the Centers for Disease Control (CDC) to provide specific regulations.  The White House announcement can be found here.

Continue Reading Sheppard Mullin Travel Checklist ‒ New Vaccination Travel Restrictions for Entry Into the United States: Air and Land Rules Effective November 8, 2021

Background

Last Friday, the Office of Foreign Assets Control (OFAC) published more targeted guidance for digital asset companies related to compliance with sanctions and best practices for mitigating risks. This guide comes on the heels of OFAC’s first enforcement action against a cryptocurrency exchange, SUEX (which we discussed in our blog here). Given the rise of ransomware threats from malicious cyber-actors that are often linked to sanctioned countries and persons, the lack of very robust regulatory oversight of the virtual currency world, the emerging nature of the technologies, and the growth of the market, it is clear that OFAC hopes crypto companies will pay more attention to sanctions risks and compliance with the issuance of this guidance. While the guide covers a lot of familiar territory, we outline a few key takeaways below.

Continue Reading Sanctions Compliance for Crypto: OFAC Issues Guidance Targeting Virtual Currency Industry

If your company is like many, your board of directors may be demanding that you put more effort into environmental, social, and governance issues, which have become known by the now-ubiquitous acronym “ESG.” Those demands don’t come from nowhere: consumers are demanding transparency and social responsibility. In particular, if your company does business internationally, regulators are focused on international social justice issues (such as the use of forced labor) more than ever.

Continue Reading Does Your Trade Policy Support Your Company’s Values?

Today, the United States Trade Representative issued a notice informing the importing community about a new Section 301 exclusion process and seeking comments from affected importers. The comment period begins on October 12, 2021, and ends on December 1, 2021.

Continue Reading Exclusions 2.0. The USTR Announces a New Section 301 Exclusion Process for Chinese Products