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On June 29, 2020, the Financial Crimes Enforcement Network (FinCEN) published updated guidance intended to “enhance the availability of financial services” for the hemp industry (the Guidance).  Even though the Agriculture Improvement Act of 2018 legalized hemp[1] at the federal level, some banks have hesitated to provide financing to the hemp industry because they are uncertain of their obligations under the Bank Secrecy Act or Anti-Money Laundering regulations (BSA/AML).  The Guidance was published to clarify those obligations, and follows closely on the new National Credit Union Administration guidance for federally-chartered credit unions issued on June 20, 2020. 
Continue Reading Clearing the Air: FinCEN Guidance May Help Banks Find Their Way in the Field of Hemp Financing

In a recent Opinion Procedure Release (OPR), Number 14-02, the U.S. Department of Justice expressly limited successor liability for a US company purchasing a non-US company that had paid bribes in the past.  In so doing, DOJ may have given a little bit of comfort to US companies and issuers thinking about purchasing non-US companies.  But as described below, we emphasize “little bit.”
Continue Reading DOJ Issues Opinion, Provides (Some) Comfort on Successor Liability

Anti-corruption due diligence can be vexing even in the best of conditions; it is often made more complicated by time and business pressures that arise in the context of a merger or acquisition or an urgent sales opportunity.  Anti-corruption compliance is always fact-intensive, and due diligence is no exception, requiring many judgment calls about what issues to prioritize and how to deploy limited resources.  This article aims to provide a basic outline of seven key steps to consider in anti-corruption due diligence.
Continue Reading Beyond the Checklist: Seven Keys to Effective Trade Due Diligence

On September 22, 2014, a Brooklyn jury found Arab Bank, Jordan’s largest lender, guilty of violating the U.S. Anti-Terrorism Act for providing financial services to individuals and entities linked to Hamas. Hamas is currently designated as a terrorist organization by the U.S. Treasury Department, Office of Foreign Assets Control (OFAC), and is listed on the Specially Designated Nationals List that OFAC maintains. Plaintiffs, victims and family members of victims of terrorist attacks, alleged that Arab Bank customers included members of Hamas and also a charitable organization, Saudi Committee, that sent payments to family members of Hamas suicide bombers. But not all of the individuals were on the SDN list, and neither was Saudi Committee.
Continue Reading Accounts and Accountability: Arab Bank Found Liable for Transactions Under the Anti-Terrorism Act

By: Reid Whitten and Scott Maberry

How did five of the most prominent freight forwarders shipping goods subject to the International Traffic in Arms Regulations (ITAR), suddenly become ineligible as carriers for ITAR exporters? The answer begins with a Sherman Antitrust action by the U.S. Department of Justice and ends, for the moment, with a major gap in logistics, supply chain, and transport for companies manufacturing, trading, or exporting ITAR-controlled products.…
Continue Reading On The List, Off The Menu: How 5 Major ITAR Shippers Disappeared