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.
A new proposed rule from the Treasury Department could make investment advisers subject to certain anti-money laundering and counter-terrorism financing requirements under the Bank Secrecy Act. The agency said the measures could close a loophole that allows sanctioned companies, including in China, to invest in U.S. companies and access sensitive technology.
Policy experts and former government officials speaking on a panel this week mostly agreed that the U.S. should impose sectoral-based outbound investment restrictions on China rather than individual investment sanctions on specific entities, saying a sector approach would be much simpler and more effective. And although some companies say it will be too challenging to comply with a broad investment ban on sensitive Chinese technology sectors, one expert said it will be easier than the financial industry is letting on.
A New York freight forwarder agreed to complete export compliance training, but won’t face a fine, after admitting to the Bureau of Industry and Security that it illegally shipped enterprise servers and switches to Iran on behalf of an Iran-based exporter.
The U.K.’s Office of Financial Sanctions Implementation this week amended a listing under its Russia restrictions list. The agency revised the listing for Vladimir Olegovich Potanin to show that he is sanctioned for conducting business in the Russian financial services and extractives sectors.
The U.K. on Feb. 12 added four Israeli citizens to its Global Human Rights sanctions regime. The Office of Financial Sanctions Implementation added Zvi Bar Yosef, Ely Federman, Yinon Levy and Moshe Sharvit for committing human rights abuses against Palestinian individuals in the West Bank.
Upcoming know-your-customer rules for U.S. cloud service providers come with a new set of compliance risks, with providers potentially facing lability not just from the Commerce Department but also from U.S. sanctions authorities, Sidley Austin said in a client alert this month.
DOJ this week completed the forfeiture of a U.S.-origin Boeing 747 after a monthslong effort to seize the plane from Mahan Air, a sanctioned Iranian airline.
Kristina Puzyreva, a Russian and Canadian national, pleaded guilty on Feb. 12 to conspiracy to commit money laundering for her role in a scheme to export unnamed aerial vehicle parts, guided missile system components and other weapons to sanctioned Russian entities, the U.S. Attorney's Office for the Eastern District of New York announced. She faces up to 20 years in prison.
Rep. Mike Gallagher, R-Wis., chairman of the House Select Committee on China, announced Feb. 10 that he won't run for re-election this year. Gallagher said it is time for him to return to private life after serving four terms in the House. As the committee's top Republican, Gallagher led probes on a range of China trade issues, including a report in December that called on the U.S. to impose stronger export controls against China (see 2312120050) and revoke the country's permanent normal trade relations status (see 2312120004).