The Office of Foreign Assets Control updated two frequently asked questions related to its Cuba restrictions. One FAQ outlines the circumstances under which the U.S. dollar can be used to conduct transactions in Cuba or with Cuban nationals, and another explains that U.S. banks are allowed to process “U-turn” transactions involving Cuba. OFAC issued a final rule in May to authorize those transactions -- which allow people to transfer funds if those transfers originate in the U.S. and terminate outside the U.S. and “where neither the originator nor beneficiary is subject to U.S. jurisdiction” -- along with other measures to loosen its Cuba restrictions (see 2405280033).
The Office of Foreign Assets Control doesn’t use its sanctions to target people for activities protected by the U.S. Constitution, including protections of free speech, religious practices and religious beliefs, the agency said in a new frequently asked question published Aug. 27. It said U.S. people and companies don’t violate sanctions “for engaging in such constitutionally protected activity,” adding that “limitations and authorizations are in place to ensure that U.S. sanctions do not restrict the exchange of information or informational materials, or personal communication.” People and companies don’t need OFAC authorization to “engage in activities that are not prohibited by or are otherwise exempt from sanctions,” the agency said. It said questions about sanctions and constitutionally protected activities should be directed to OFAC’s online compliance hotline.
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Some companies are struggling to meet a due diligence threshold set by the U.S. government for sales to foreign suppliers accused of illegal sales to Russia, said Anne van de Heetkamp, vice president of product management for global trade intelligence at Descartes Systems Group.
Sen. Rick Scott, R-Fla., urged the Biden administration last week to take action against Chinese companies that form U.S.-based subsidiaries to evade sanctions and other restrictions imposed by the U.S. government.
The U.N. Security Council recently removed Yassine Chekkouri from its ISIL (Da’esh) and al‑Qaida sanctions list “after concluding its consideration” of a delisting request received by the council. The council didn’t provide a specific reason for Chekkouri’s delisting. Chekkouri was sanctioned by the U.S. in 2002 for his ties to al‑Qaida and his involvement in arms and weapons trafficking.
The Bureau of Industry and Security should clarify whether new export controls aimed at preventing China from obtaining advanced computing chips apply to artifical intelligence-capable central processing units (CPUs), researchers with Georgetown University’s Center for Security and Emerging Technology said.
The Bureau of Industry and Security reached a $44,750 settlement with Streamlight, Inc., a Pennsylvania-based manufacturer of portable lighting products, after BIS said the firm violated the Export Administration Regulations’ antiboycott provisions. Streamlight committed the antiboycott violations by certifying to a freight forwarder -- as it prepared for a Bahrain trade show -- that its goods didn’t come from Israel.
Sandler Travis hired two trade lawyers and an import compliance specialist to expand its trade service offerings, the law firm announced Aug. 23. Lawyer William Marshall will focus on import and supply chain issues while Narges Kahvazadeh will provide legal counsel on export controls and sanctions. Regina Walton, a licensed customs broker, joined the firm as an auditor with a focus on import compliance matters.
Companies should prepare for the annual Sept. 30 deadline for filing reports on blocked property to the Office of Foreign Assets Control, Davis Wright said in a client alert last week. The law firm also noted that an interim final rule issued by OFAC in May requires filers of blocked property to now only submit those documents electronically instead of through mail, along with other "new requirements" for reports of blocked property and rejected transactions (see 2405080023).