The United Kingdom published it first national risk assessment for proliferation financing. The Sept. 23 document covers the U.K.'s strategic, regulatory and operation framework for countering proliferation financing, proliferation financing threats facing the U.K. and vulnerabilities to proliferation financing in Britain. European Sanctions reported on the assessment's key findings, including that “the UK has a robust counter-proliferation legal framework, including its autonomous sanctions regimes,” and “the UK’s financial system is at significant risk from PF given its position in the global financial system, transparency, involvement in the legitimate trade of sensitive/dual-use items and the ease with which actors may set up shell companies in the UK.” North Korea and Iran exist as key proliferation financiers affecting the U.K. financial system, with China and Syria also in the mix, the assessment said.
The United Kingdom Financial Conduct Authority published a new guidance for companies on how to counter financial crime risks. The report covers financial crime systems and controls, money laundering and terrorist financing, fraud, data security, bribery and corruption, sanctions and asset freezes, and insider dealing and market manipulation. The sanctions and asset freezes chapter advises companies to be aware of sanctions obligations, have risk assessment frameworks in place including necessary sanctions screening methods, and implement systems to identify “false positives” and real matches of names to sanctions lists. It also said compliance programs should address export controls.
Virgil Griffith, a U.S. citizen residing in Singapore and cryptocurrency expert, pleaded guilty to conspiring to violate the International Emergency Economic Powers Act by giving North Korea technical advice on how to use cryptocurrency and blockchain technology to skirt U.S. sanctions, the U.S. Attorney's Office for the Southern District of New York said. Griffith began formulating his plans in 2018, traveling to Pyongyang in 2019 to attend the Pyongyang Blockain and Cryptocurrency Conference. The State Department denied Griffith the right to travel to North Korea, but he went anyway, giving presentations to the North Korean audience, knowing full well that this violated sanctions, the Department of Justice said.
The U.S. plans to prioritize discussions on export controls and investment screening tools during the first meeting of the U.S.-European Union Trade and Technology Council this week (see 2109130025), senior administration officials said. The two sides plan to release a set of shared trade and technology commitments after the Sept. 29 meeting in Pittsburgh, which should hint at closer collaboration on various trade restrictions, one official said, particularly involving semiconductors.
The European Parliament called for targeted sanctions against individuals and entities in Lebanon, Afghanistan, the United Arab Emirates and Cuba, in four Sept. 16 resolutions. In one such resolution, the parliament called for sanctions on anyone falling under the new Lebanon sanctions framework, which was in response to Lebanon's “political, economic, social, financial and health crisis.” In a second resolution, the parliament called for sanctions under the EU Global Human Rights Sanctions Regime for individual and entities responsible for human rights atrocities committed by the Taliban in Afghanistan during its takeover of the country. The parliament called for targeted sanctions against those in the UAE responsible for the persecution of Ahmed Mansoor and other human rights defenders under the EU Global Human Rights Sanctions Regime. The parliament also seeks sanctions on those responsible for human rights violations in Cuba related to the government crackdown on protesters and citizens.
The European Commission published guidance Sept. 23 designed to help researchers and academics comply with European Union and member state laws on dual-use goods and technology, as well as to help them "to identify, manage and mitigate risks associated with dual-use export controls." The guidance contains three sections, with the first constituting an introduction for the management level in research organizations, with emphasis on how this level of management's commitment to compliance is instrumental in implementing internal compliance measures; the second dealing with awareness information for researchers, including "the basics of dual-use export controls"; and the third providing specific guidance to compliance staff on how to establish an internal compliance program.
The House-passed 2022 National Defense Authorization Act includes a provision that would mandate new sanctions against the Nord Stream 2 gas pipeline project. The amendment, proposed by Rep. Michael McCaul, R-Texas, would authorize sanctions against the project, “excluding the national security waiver,” to attempt to stop its completion. The Biden administration has issued some sanctions against the Russia-to-Germany pipeline project (see 2108230057) but has also said more U.S. sanctions wouldn’t stop the pipeline from being completed and would only cause tension with Germany (see 2107220008).
Rep. Scott Franklin, R-Fla., introduced a bill that would prohibit U.S. funding for the Taliban government and require sanctions on foreigners who knowingly provide assistance to Afghanistan's government. Franklin said Sept. 23 that his bill is a companion to the bill introduced by Sen. Marco Rubio, R-Fla., (see 2109210010). He has five Republican co-sponsors. Franklin said the bill also would repeal the exception in Iran sanctions for sectors necessary for Afghan reconstruction. "While we feel this should be an issue on which all sides can agree, sadly our Democrat colleagues have not chosen to join this effort,” Franklin said.
The Bureau of Industry and Security completed its review of a final rule that would control exports of certain types of deuterium under the Export Administration Regulations. The rule, received by the Office of Information and Regulatory Affairs June 16 (see 2106240004) and completed Sept. 23, would control deuterium exports “intended for use other than in a nuclear reactor,” BIS said. The agency said the rule will transfer the responsibility for controlling those exports from the Nuclear Regulatory Commission to BIS.
The Office of Foreign Assets Control issued two general licenses aimed at allowing humanitarian assistance and aid to more easily flow to Afghanistan amid the Taliban takeover of the country’s government. The agency, which also published new guidance for using the licenses, said Sept. 24 it’s “committed to ensuring that U.S. sanctions do not limit the ability” of the Afghan people to receive aid from the U.S. government and the international community.