The State Department fined U.S. defense firm RTX Corp. $200 million to settle alleged violations of the Arms Export Control Act and the International Traffic in Arms Regulations, one of the largest standalone export penalties ever issued by the agency. The Directorate of Defense Trade Controls said the 750 violations, most of which involved the “historical systemic failures” of an aerospace systems company acquired by RTX, stemmed from export control classification issues, the illegal “hand-carry” of defense items to another country and violations of the terms of DDTC licenses. RTX voluntarily disclosed the violations, which included exports of prohibited items to Lebanon, Iran, Russia and China.
The Treasury Department issued a final rule this week that will make investment advisers subject to anti-money laundering and counter-terrorism financing requirements, which it said will close a loophole that allows criminal actors to hide money in the U.S. and sanctioned companies to access sensitive technology through investments in American firms.
The U.S. touched on export controls in talks between National Security Adviser Jake Sullivan and China's Foreign Minister Wang Yi, readouts from both countries said, with the Chinese summary of two days of talks going into more detail about China's views on the issue.
The U.S. and South Korea this week hosted a symposium for government officials, finance industry representatives, investment firms and others about how to shield the virtual asset industry from being exploited by North Korea, the State Department said. The symposium, held in New York on Aug. 27, convened participants from more than 40 countries to discuss “updates on current trends” in North Korean virtual asset thefts and laundering, information on North Korean cyber threats, and “guidance on how industry and government can better work together.”
The U.S. this week sanctioned Hashomer Yosh and Yitzhak Levi Filant, a non governmental organization and a person, respectively, for contributing to violence against Palestinians in the West Bank. Hashomer Yosh has provided “material support” to other U.S.-sanctioned Israeli groups and people in the region, and Filant is the civilian security coordinator of the Yitzhar settlement in the West Bank, where he helped lead armed Israeli settlers to attack Palestinians in their lands, the State Department said.
The U.S. removed sanctions from a former board member of one of Russia’s largest private banks more than two years after he submitted a delisting petition and about 10 months after he sued the State Department for stalling a decision on that petition without explanation.
The Bureau of Industry and Security is seeking public comments on two export-related information collections, it said in notices this week.
Hungarian national Bence Horvath was charged with violating U.S. export controls on Russia by conspiring to ship radio communications technology to Russian government end users without a license, DOJ announced Aug. 26. Horvath is charged with one count of conspiring to violate the Export Control Reform Act of 2018.
Sen. Joni Ernst, R-Iowa, urged the Biden administration Aug. 27 to increase its enforcement of Iran sanctions to reduce Tehran’s support for terrorist groups. "Instead of allowing the Iranian regime to prosper and withholding weapons from our greatest ally in the Middle East, I’m calling on the Biden-Harris administration to deny" Iran's Islamic Revolutionary Guard Corps' "ability to support and arm terrorists and provide Israel the resources it needs to decimate these terrorists once and for all," Ernst said. The senator made her comment after visiting the site in northern Israel where a rocket attack by Iran-backed Hezbollah killed 12 children last month. A State Department official recently said the administration is "vigorously enforcing" Iran sanctions (see 2408120032).
The U.K. on Aug. 27 removed one person from its ISIL (Da'esh) and al-Qaida sanctions regime, the Office of Financial Sanctions Implementation announced. Moroccan national Yassine Chekkouri was delisted from the sanctions regime. The U.N. Security Council deleted Chekkouri's designation days earlier after receiving a delisting request (see 2408260002).