The Treasury Department’s Financial Crimes Enforcement Network should establish a no-action letter process, industry groups said, which would help provide better compliance guidance to banks and lead to better reporting. No-action letters, which are used by other enforcement agencies to indicate their intention not to take enforcement action against a party submitting a disclosure, could significantly improve industry’s understanding of FinCEN regulations and reduce compliance risks, the groups said.
The Bureau of Industry and Security this week charged a Chinese company with violating U.S. export controls when it helped Zhongxing Telecommunications Equipment Corporation sell controlled items to Iran. The company, Far East Cable, served as a “cutout” between ZTE and several Iranian telecommunications companies, BIS said, helping ZTE “conceal and obfuscate” its business dealings in Iran from U.S. investigators. In total, BIS said Far East Cable committed 18 violations of the Export Administration Regulations.
The U.S. should transform the Committee on Foreign Investment in the U.S. into a new Commission on Foreign Investment and National Security, which would improve transparency and reduce uncertainty around investment reviews, Morgan Lewis lawyers said. Although the process of standing up a new government commission and issuing regulations may be “arduous and expensive,” the lawyers say the benefits will outweigh the costs.
Although the U.S. and its allies should form a new multilateral export control regime that could be used to penalize Beijing if it invades Taiwan (see 2206100021), it remains unclear how many allies would be willing to go along with new China sanctions, panelists told a congressional commission this week. Some countries in Europe and Asia may have an interest in joining together to deter Beijing, the experts said, but imposing severe multilateral export controls against China would be more challenging than imposing similar measures against Moscow.
The Federal Maritime Commission will soon ask for public comments on a proposed plan to collect new tonnage and cargo capacity data from certain ocean carriers. Under the proposal, which includes a 60-day comment period once published in the Federal Register, the FMC would collect information from carriers on the total import and export tonnage and the total loaded and empty 20-foot equivalent units (TEU) per vessel.
The Bureau of Industry and Security this week suspended the export privileges of a Venezuela-based cargo airline for violating U.S. export controls. The agency said Empresa de Transporte Aereocargo del Sur, also known as Aerocargo del Sur Transportation or EMTRASUR, acquired “custody” of a U.S.-origin Boeing aircraft from Mahan Air -- a sanctioned Iranian airline (see 2205160035) -- and illegally flew that plane between Venezuela, Iran and Russia.
The Committee on Foreign Investment in the U.S. this week issued its annual report to Congress, outlining statistics from the first full calendar year in which CFIUS operated under expanded authorities granted to it by the Foreign Investment Risk Review Modernization Act (see 2002270049 and 2001140060). CFIUS said it received 164 declarations in 2021, an increase from the 126 it received in 2020 2107260017, and 272 notices, up from the 187 from 2020.
The Bureau of Industry and Security entered into a settlement agreement with a Nogales, Arizona, business owner after he tried to illegally export about $4,000 worth of items to Mexico, including ballistic helmets and rifle scopes. Under a settlement agreement, Luis Fernando Gracia must conduct an internal audit of his company’s export compliance procedures and complete compliance training or else face the suspension of his export privileges.
The Bureau of Industry and Security this week updated its restricted aircraft list with 25 foreign-produced planes that have violated U.S. export controls. BIS said the commercial planes -- which are the first foreign-produced aircraft added to the list -- violated the Export Administration Regulations’ de minimis threshold for U.S. components by flying into Russia or Belarus. The agency also updated various tail numbers and serial numbers for other listed planes.
The first ship to carry Ukrainian grain exports from the Black Sea left the port of Odessa Aug. 1, the White House said, about five months after Russia invaded Ukraine and halted the country’s agricultural shipments. The successful export was a direct result of an agreement between U.N., Russia, Ukraine and Turkey last month (see 2207250004) to start allowing safe passage of Ukrainian exports through the Black Sea, National Security Council spokesperson John Kirby said.