A U.S. digital assets company and a European aerospace firm recently disclosed in financial statements that they're under investigation for possible violations of sanctions or export control laws, while an American entertainment company revealed it submitted a sanctions disclosure to the U.S. government.

The U.S. Supreme Court's decision in Loper Bright v. Raimondo rejecting the Chevron principle of deferring to federal agencies' interpretations of ambiguous statutes doesn't call for the U.S. District Court for the District of Columbia to revisit a decision sustaining the sanctions designation of former Afghan government official Mir Rahman Rahmani and his son, Hafi Ajmal Rahmani, the U.S. said this week (Mir Rahman Rahmani v. Janet Yellen, D.D.C. # 24-00285).

Companies should expect the Treasury Department to aggressively penalize violators of its upcoming outbound investment prohibitions relatively soon after those rules are finalized, lawyers with Kirkland & Ellis said this week. They also said American chip companies and other technology firms are considering inserting new outbound investment-related warranties in their contracts and may start pulling out of existing investment deals that could soon be captured by the new prohibitions.

The Biden administration is doing too little to counter China’s material support for Russia’s war machine, the ranking member of the Senate Foreign Relations Committee said July 30.

The Pentagon should drop its outdated approach to technology security and export controls and allow American defense companies to work more efficiently with U.S. allies, a Defense Department advisory committee said in a new report this month. The committee said the agency needs major revisions to the way it treats restrictions under the International Traffic in Arms Regulations, warning that DOD is “failing to address shortcomings in international engagement amid a rapidly evolving global security landscape.”

Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.

The U.S. should start designating Chinese banks under a December executive order that authorizes secondary sanctions on foreign financial institutions that help facilitate Russia-related transactions, a group advocating for democracy in Hong Kong said in a new report this month.

The U.S. is considering “consequences,” including possibly sanctions actions, against Venezuela after the country’s Nicolas Maduro-led regime appeared to alter the results of the country’s presidential elections, senior administration officials said this week.

A new report accompanying the Senate Appropriations Committee’s FY 2025 Commerce-Justice-Science Appropriations Bill calls for the Bureau of Industry and Security to conduct several export control reviews, including one that identifies regulatory “gaps” that have allowed controlled U.S. technology, especially semiconductor technology, to flow to China without a license (see 2407260054).

A U.S. District Court in Kentucky on July 24 said that the U.S. statute barring the smuggling of goods from the U.S. covers only material items and doesn't extend to emails. U.S. District Judge for Western Kentucky David Hale dismissed a charge against defense contractor Quadrant Magnetics, along with several of its employees, which said the parties smuggled goods from the U.S. by "emailing magnet schematics to Chinese manufacturers."