Lawmakers are proposing dozens of export control-, sanctions- and foreign investment-related amendments to the House version of the FY 2025 National Defense Authorization Act (NDAA), including measures aimed at China, Iran and Russia.
The Group of 7 nations are working on a deal that would allow all members to use seized Russian assets to support Ukraine’s war effort against Russia, said Daleep Singh, a National Security Council official. He said the countries haven’t agreed to terms yet, but the U.S. hopes to make progress when the G7 nations meet in Italy next week.
U.S. in-house attorneys need to be more vigilant than ever when investigating possible export control violations, lawyers said this week, adding that the risks of a possible civil or criminal penalty for a subpar internal investigation, or for not disclosing a violation quickly enough, are rising.
The Office of Foreign Assets Control this week updated and added to its Syria-related restrictions under several sanctions regimes, including restrictions related to “foreign sanctions evaders.” The agency also added various definitions and a new general license, along with updating other licenses, including changes to a license that authorizes certain legal services.
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A top Treasury Department official this week called on U.S. companies and banks to bolster their trade compliance efforts, saying they need to do more to prevent their customers and counterparties from buying and shipping sensitive items for Russia’s military.
The State Department’s proposed rule exempting Australia and the U.K. from International Traffic in Arms Regulations under the Australia-U.K.-U.S. (AUKUS) security partnership is too restrictive and should be revised to remove barriers to defense trade among the three countries, the Aerospace Industries Association (AIA) told the agency last week.
The Bureau of Industry and Security reached a $44,750 settlement with Airbus DS Government Solutions, a Texas-based satellite communications company, after BIS said the firm violated the Export Administration Regulations’ antiboycott provisions. The agency said Airbus DS-GS failed to report a boycott request to the U.S. government and certified to another business that its products didn’t come from Israel.
A new rule that would impose a three-day deadline for certain responses to the Committee on Foreign Investment in the U.S. was unanimously criticized by several law firms, an industry group and the Chinese government, which said such a time frame doesn’t take into account the complex, time-consuming discussions companies must have when dealing with CFIUS. Some commenters also asked the committee to nix a proposed change that would raise the maximum penalty for violations from $250,000 per violation to $5 million, saying most violations are accidental, and the increase could rattle the “confidence” of foreign investors.
All 12 Republicans on the House Select Committee on China, including Chairman John Moolenaar of Michigan, urged the Treasury Department May 31 to investigate whether six Chinese companies should be sanctioned for helping Iran’s military and energy sectors evade U.S. sanctions.