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.
Australian export compliance officers are wary about a new proposed International Traffic in Arms Regulation exemption for defense trade with the U.S., which is causing some compliance confusion and could lead to a host of “operational challenges” for companies subject to trade regulations, said Eva Galfi, a consultant for International Trade Advisors in Australia. She said the new exemption, along with a similar rule by the Commerce Department to reduce certain license requirements for exports to Australia and the U.K., may also increase the risk of large fines for violations.
Sanctions and export control attorney Keil Ritterpusch has joined Buchanan Ingeroll as a shareholder in the international trade and national security practice group, the firm announced May 13. Ritterpusch has worked across the defense, aerospace and software sectors and has helped clients put in place compliance programs involving the International Traffic in Arms Regulations, Export Administration Regulations, Foreign Trade Regulations, Office of Foreign Assets Control regulations and Foreign Corrupt Practices Act requirements.
The U.K. High Court of Justice on May 10 made permanent a court order blocking sanctioned Russian entity VEB from taking a dispute with Barclays Bank to an arbitration court in Russia. The court rejected VEB's claim that British sanctions "frustrated" an arbitration agreement between the parties.
Leaders of the House Foreign Affairs Committee said May 13 they might pursue financial sanctions and other measures against Georgia if the country’s government doesn't withdraw a “foreign agents” bill that would crack down on civil society organizations and independent media outlets.
Four House Republicans said last week they’re concerned the Biden administration is considering giving small and medium-sized businesses in Cuba access to the U.S. banking system even though such entities are generally controlled by Cuba's communist government.
The Bureau of Industry and Security sent a proposed rule for interagency review that could lead to new export controls on the activities of U.S. persons in support of foreign military, security or intelligence agencies.
Some technology companies and industry groups were supportive of an ongoing effort by the Bureau of Industry’s Security to stop advanced artificial intelligence models from being used by dangerous end-users, but many also said the agency’s proposed know-your-customer regulations for U.S. cloud service providers should be tweaked or rewritten. Others said the new KYC rules could place too heavy a burden on cloud service providers and could undermine trust in American providers.
Estonian Bank LHV Pank said it plans to contest in court a $322,000 fine by the Estonian Financial Intelligence Unit for violating Estonia's International Sanctions Act."LHV Pank does not agree with the FIU’s resolution and plans to contest it in court," the bank said. "LHV Pank takes regulatory compliance very seriously and has put in place all necessary solutions to meet all due diligence obligations related to financial sanctions."
China voiced its opposition to the Bureau of Industry and Security's recent move to add 37 Chinese technology companies, manufacturing firms, research institutions and others to the Entity List (see 2405090023), saying Beijing will "safeguard the legitimate rights and interests of Chinese companies," according to an unofficial translation of a news release that highlights a response to a reporter's question at a Beijing press conference. A Chinese Ministry of Commerce spokesperson accused the U.S. of "overextending" its concept of national security and said it has "abused" its export control measures.