The European Parliament this week voted to approve new rules that could require member states to treat sanctions violations as criminal offenses, leading to harsher penalties and possible prison time (see 2312120059).
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
A U.K. law firm this week warned about sanctions risks tied to property purchases, saying one of its lawyers had to first obtain approval from a U.K. bank before a British-Iranian client could buy property in the U.K.
Although entities on the Treasury and Defense departments’ Chinese military company lists aren't necessarily subject to export controls, it's still very risky to do certain business with them, former Bureau of Industry and Security officials said this week. They said they would advise companies to treat those listed entities as prohibited Chinese military end-users unless they can prove otherwise.
The Federal Maritime Commission is preparing for another uptick in enforcement and is expecting a range of rulemakings to be finalized during or before FY 2025, including a new charge complaint process, a new container data collection effort and a new electronic court case management system. The commission previewed those updates as part of a $48.4 million congressional funding request released this week for FY 2025 -- about a $5 million increase from the $43.7 million it requested the previous year (see 2303200063).
A new rule released by the Bureau of Industry and Security clarifies certain export controls on radiation hardened integrated circuits -- including computer and telecommunications equipment using those circuits -- and expands the availability for a license exception that can be used to export certain microelectronics under contracts with the U.S. government.
Members of the European Parliament this week disagreed on the best path forward for new EU-wide supply chain due diligence rules, although an official with the Belgian presidency said it believes the EU can reach a compromise before the end of the current parliament’s term in April.
DOJ officials said they have seen a rise in voluntary self-disclosures in recent months, including for possible violations of export controls and sanctions. They also stressed that the agency is continuing to double down on its enforcement resources, including by hiring more prosecutors and starting a new whistleblower initiative to better incentivize tips about corporate wrongdoing.
Governments could eventually require companies to monitor their sensitive semiconductor equipment shipments by using location tracking features, which could help industry better conduct due diligence and improve government export enforcement, said Chris Miller, an expert on semiconductor technology policy and history.
U.S. sanctions and export control agencies this week warned foreign companies about the risks they may face for poor compliance with U.S. trade rules, saying the government can pursue civil and criminal penalties against businesses for a range of transactions that take place outside U.S. borders. The new “tri-seal compliance note” published by DOJ, the Commerce Department and the Treasury Department includes a list of activities that most commonly place foreign firms at risk, outlines how U.S. export licensing requirements can apply to shipments through third countries, and summarizes recent enforcement actions taken by all three agencies to punish violators.
The Group of 7 should expand membership and use the forum to create a new multilateral export control regime for critical and emerging technologies, which could help replace the outdated Wassenaar Arrangement, said Emily Benson, a trade and technology policy expert. She said G7 nations are open to the idea, although she believes the U.S. hasn’t yet decided on the best path forward.