The EU should build a sanctions regime against disinformation, a European Parliament Special Committee on Foreign Interference said in the final conclusions of an 18-month investigation. The committee said that the European public and government are "'overwhelmingly' unaware of the severity of the threat posed by foreign autocratic regimes," namely, Russia and China. This leads to a particular vulnerability to cyberattacks and the recruitment of former senior officials to help polarize the public debate, the report said. To counter such threats, the committee recommended supporting "pluralistic media" and fact-checkers, making online platforms invest in language skills to act on illegal and harmful content, designating digital election infrastructure as critical, banning foreign funding of European political parties and improving cybersecurity, among other things. The committee also recommended a sanctions regime to combat disinformation.
Companies could face a variety of compliance challenges if the U.S. expands its foreign direct product rule to capture exports to Russia, Cooley's Annie Froehlich, an export control lawyer, said in a Feb. 3 Atlantic Council blog post. The U.S. has reportedly considered using the rule if Russia further invades Ukraine, which could limit Russia’s ability to import certain foreign-produced chips, integrated circuits and microprocessors, the post said. “If regulatory actions are imposed, assessing exposure and implementing appropriate compliance responses will be challenging.”
The Bureau of Industry and Security will add 33 Chinese entities to its Unverified List this week, including a range of companies operating in China's technology and electronics sectors, it said in a notice released Feb. 7. BIS said it hasn’t been able to verify the “legitimacy and reliability” of the entities through end-use checks, including their ability to responsibly receive controlled U.S. exports. All export license exceptions involving those parties will be suspended, and exporters must obtain a statement from any party listed on the UVL before proceeding with certain exports.
The House voted 222-210 last week to pass its China competition bill, which includes a variety of provisions that could expand U.S. export controls, sanctions and investment screening authorities. Although the America Competes Act faced objections from Republicans who argued it wasn’t tough enough on China and didn’t include strong enough export control measures (see 2202020039), several provisions could lead to more China sanctions and further restrict exports of critical American technologies.
Israel's Ministry of Justice released proposed amendments to the nation's 2016 Counter-Terrorism Law that would allow the defense minister to independently add people to its "terrorist operatives" sanctions regime if those additions are based on designations made by "competent foreign sanctions authorities." According to an unofficial translation, the proposed amendment also allows for the implementation of U.N. terrorist sanctions on Israeli citizens, as the current law does not permit such designations. The deadline for comments on the proposed changes is Feb. 6.
A recently released Norwegian Refugee Council report, "Life and Death: NGO access to financial services in Afghanistan," focusing on how to transfer humanitarian funds into and around Afghanistan, says overcompliance with financial sanctions hampers access to humanitarian aid. It says that as a result, payment systems, including the Society for Worldwide Interbank Financial Telecommunication and StoneX, have been made widely unavailable. The report recommended sanctions guidance be harmonized across international regulators and include clear guidance on the scope of the sanctions. Governments also should prioritize adopting the U.N.'s humanitarian exception into domestic legislation, the report said.
The Biden administration’s closed briefing to lawmakers on Feb. 3 only underlined the need for strong U.S. sanctions against Russia, several senators said. Sen. Chris Coons, D-Del., said administration officials gave a “factual assessment” of the dire situation at the Ukrainian border, which could soon see a Russian military invasion. “It's really hard to listen to all that and not conclude that we need to do more,” Coons told reporters on Capitol Hill. “Everything should be on the table in terms of sanctions.”
The Office of Foreign Assets Control on Feb. 3 sanctioned World Human Care, a non-governmental organization created by Indonesia-based terrorist group Majelis Mujahidin Indonesia. OFAC said the group provides financial support for MMI “extremists” in Syria “under the guise of humanitarian aid.”
The U.S. will penalize China if it tries to help Russia evade impending U.S. export controls that would be imposed if President Vladimir Putin invades Ukraine, the State Department said. Those measures would be coordinated with allies, spokesperson Ned Price told reporters Feb. 3.
Crowell & Moring has seen “mixed results” and some longer response times from the Bureau of Industry and Security for license applications captured by the agency’s military end-use and end-user rule, said Brian McGrath, a trade lawyer with the firm. But overall, McGrath said the agency has been helpful when responding to exporter questions about the rule, which imposed more due-diligence requirements on shipments that could be sent to military end users or used for military end uses in certain countries (see 2102190042).