Tag Archives: Treasury

Your Way-Too-Early Guide to North Korean Investment: Big Opportunities, Big Risks, and the Regulatory Guidance to Identify Both

By Reid Whitten on June 7, 2018 Posted in Sanctions

I spent last week in Seoul talking to clients about the latest changes to U.S. trade and sanctions policy (as South Korea is one of Iran’s largest trading partners, it is understandable that some concerns have arisen there in May). Interestingly, a topic that came up often was how to reenter the North Korean market. … Continue Reading

Chips on Their Shoulders: CFIUS Intervenes in Broadcom’s Hostile Takeover Bid for Qualcomm

By Drew Svor, Brian Weimer and Reid Whitten on March 8, 2018 Posted in CFIUS

CFIUS takes an unprecedented step to fend off a potential foreign acquisition The threat that China will eclipse the U.S. in telecommunications infrastructure and technology is central to U.S. national security Five key takeaways from the most recent CFIUS action Since late 2017, Singapore-based semiconductor company Broadcom has been pursuing a $117 billion hostile takeover … Continue Reading

Seeking foreign investors for your tech startup? Congress says, “not so fast.”

By J. Scott Maberry, Reid Whitten and Hwan Kim on January 10, 2018 Posted in CFIUS

The U.S. Congress is currently considering legislation that would tap the brakes on foreign direct investment in the United States, particularly on investments in sensitive industries like artificial intelligence, robotics, and semiconductors. We know: you’re saying we already have that in the form of the Committee on Foreign Investment in the United States (known as … Continue Reading

In-fo’ a CFIUS Review: The Expanding Power of CFIUS through Data Security Scrutiny

By Reid Whitten on January 10, 2018 Posted in CFIUS

CFIUS is expanding its reach. Where the Committee on Foreign Investment in the United States has generally scrutinized foreign acquisition of U.S. “critical infrastructure,” it has now signaled that it may look closely at any deal where the target collects or maintains sensitive personal information.… Continue Reading

The Waiting Game: When, Why, and How to File with CFIUS in a New Era of Investment Scrutiny

By Reid Whitten and J. Scott Maberry on December 12, 2017 Posted in CFIUS

The other day I spoke to a colleague at the U.S. Department of the Treasury who works in the Office of Investment Security and said, “I heard CFIUS filings were going to break last year’s record total.” He just laughed. He said the OIS received one hundred and seventy-some filings in 2016, the most they … Continue Reading

The Future of Russia Sanctions: The Awkward Edition

By Fatema Merchant and Lisa Mays on January 12, 2017 Posted in Sanctions

On January 10, 2017, Senate Republicans and Democrats introduced bi-partisan legislation called the “Countering Russian Hostilities Act of 2017,” which would impose broad sanctions on Russia. The Act would codify the sanctions President Obama imposed in response to the Russian cyberattack on the United States to influence the 2016 U.S. Presidential election and the Ukraine-related … Continue Reading

The Table Flip: Trump, the Iran Nuclear Deal, and American Business

By Reid Whitten and Lisa Mays on December 7, 2016 Posted in Sanctions

A President Trump will have authority to reinstate sanctions lifted by the Iran Nuclear Deal as well as revoke certain authorizations provided for business with Iran. Several economic and geopolitical factors may cause Mr. Trump to reconsider or mitigate his approach to the Iran Nuclear Deal. Companies should prepare to respond quickly to any changes. … Continue Reading

Those Three Little Words: OFAC’s Subtle Language Shift Could Create Sweeping Change on Iran Investment

By Reid Whitten and J. Scott Maberry on October 10, 2016 Posted in Sanctions

Article Highlights: Non-U.S. banks can do business with Iran and continue their relationships with U.S. banks. Non-U.S. companies may use proceeds from Iran transactions more freely, including in the United States. OFAC draws a clearer line with respect to the use of Iran-related funds. After the Iran nuclear agreement, as non-U.S. companies entered into newly-permitted … Continue Reading

Layover in Tehran: United States Authorizes Carriers to Land Civil Aircraft in Iran

By Reid Whitten and J. Scott Maberry on August 17, 2016 Posted in Sanctions

On July 29, 2016, the U.S. Treasury Office of Foreign Assets Control (OFAC) cleared the runway for non-U.S. operators of civil aircraft to send flights into Iran. New “General License J” authorizes many Boeing, Airbus, and other civil aircraft containing U.S.-origin materials to fly to Iran on “temporary sojourn.” The General License provides a great … Continue Reading

Flying the Too-Friendly Skies? Europe Opens Routes for Sanctioned Iran Airline

By Reid Whitten and J. Scott Maberry on June 9, 2016 Posted in Sanctions

On June 20, 2016, you will be able to take a non-stop flight from Tehran to Paris . . . but you probably shouldn’t. According to its website, the Iranian airline Mahan Air will add the City of Lights to the list of European destinations it is already serving, including Athens, Copenhagen, and Dusseldorf. What … Continue Reading

New Business Opportunities in Iran! But Who Will Be Your Banker? Non-U.S. Banks Hesitant to Process Lawful Iran Transactions…and for Good Reason

By Reid Whitten and J. Scott Maberry on April 20, 2016 Posted in Sanctions

Highlights: Sanctions relief presents new business opportunities with Iran Most U.S. companies are still prohibited from Iran business, but the U.S. government is encouraging lawful business by non-U.S. companies The line between permitted and prohibited financial transactions by non-U.S. banks is not clear Careful advice of counsel is critical… Continue Reading

Keep Your Frenemies Close: Proposed China Sanctions and the Price of Escalation

By Reid Whitten on September 17, 2015 Posted in Sanctions

On August 30, 2015, the Washington Post broke a story that the Obama administration is developing a package of economic sanctions that will target Chinese companies and individuals who have benefitted from cybertheft. The new sanctions would come at a time when commerce between the two countries is thriving, but political relations are strained.… Continue Reading

U.S. Authorizes Targeted Sanctions Against Overseas Cyber Threats

By Curtis Dombek on April 3, 2015 Posted in Sanctions

Cyber threats are one of the U.S.’s top security threats. In just the past year, there has been a significant increase in the frequency, scale and sophistication of cyber intrusions and attacks – many of them originating overseas – which have targeted U.S. businesses. On April 1, 2015, the President announced a new tool to … Continue Reading

The Broader Problem: European Bank Creates an Easy Catch for the Long Arm of U.S. Jurisdiction

By Reid Whitten on April 1, 2015 Posted in Sanctions

On March 12, 2015, Commerzbank AG, Germany’s second largest bank and a global financial institution, agreed to pay $1.45 Billion (yes, with a “B”) in forfeitures and fines to the U.S. Government for violating U.S. sanctions against Iran and Sudan. The amount paid by Commerzbank under the settlement will not be shocking to those who … Continue Reading