The U.S. and several allies announced a host of new sanctions against people and entities responsible for the Belarusian government’s disputed 2020 presidential election and recent human rights abuses. The sanctions, coordinated with Canada, the European Union and the United Kingdom, also target Belarus and President Alexander Lukashenko’s government for the forced diversion of a commercial plane last month to arrest a journalist, the U.S. Treasury and State Department said June 21. Treasury’s Office of Foreign Assets Control also issued a new general license to authorize certain transactions with Belarus and published additional sanctions guidance.
The Office of Foreign Assets Control issued guidance and three new general licenses to expand humanitarian-related exemptions for shipments and activities in sanctioned countries. The licenses apply to Iran, Syria and Venezuela and are accompanied by six new frequently asked questions to “further support the critical work” of humanitarian and COVID-19 aid to people in sanctioned regions. The guidance comes amid criticism from humanitarian groups that U.S. sanctions continue to inadvertently block aid shipments (see 2105260047 and 2105280004).
Companies involved in export controlled technology should be careful not to violate anti-discrimination regulations in their job postings, which have become “low-hanging fruit” for U.S. enforcement officials, trade lawyers said. The lawyers said many companies subject to deemed export regulations inadvertently advertise that only U.S. citizens can apply for their job posting, which could invite penalties from the Justice Department.
More countries are using cryptocurrencies to evade U.S. sanctions, a troubling trend that could damage U.S. sanctions regimes if not managed correctly, sanctions experts told Congress this week. The experts said lawmakers should provide more funding to the Treasury Department's Office of Foreign Assets Control to address the issue and should push for more public-private partnerships to help OFAC target cryptocurrency users.
Although the U.S. will likely have to separate from China in certain technology sectors, Treasury Secretary Janet Yellen said she is concerned trade tensions could lead to a broader economic decoupling that could stymie technology innovation and damage the competitiveness of U.S. companies. “Our conflict with China could result in growing decoupling of technologies,” Yellen told the Senate Finance Committee June 16. “But I worry that if we are too broad in our policies in terms of how we approach this, we can lose the benefits that come from having globally integrated technology systems where advances in one country benefit countries worldwide.”
Republican lawmakers again threatened to remove export control responsibilities from the Commerce Department if it doesn’t move faster to issue restrictions over emerging and foundational technologies, doubling down on criticism levied at agency officials for months. The latest threat, sent in a June 15 letter to Commerce Secretary Gina Raimondo and signed by 10 Republican senators, highlights the tension between an agency that wants to avoid rushing into overbroad controls that could harm U.S. companies and lawmakers who say Commerce is neglecting a congressional mandate to restrict sensitive exports to China.
Following reports that China is continuing to buy U.S.-made DNA equipment despite U.S. export restrictions, Rep. Michael McCaul, R-Texas, said the Bureau of Industry and Security needs to strengthen its controls.
The Commerce Department published its spring 2021 regulatory agenda for the Bureau of Industry and Security, including two new mentions of emerging technology rules and new export controls on certain camera systems.
Treasury Secretary Janet Yellen declined to say whether the Biden administration will continue its strong sanctions against Cuba and suggested the agency's Cuba program may be reworked. Yellen, speaking during a June 10 House Appropriations subcommittee hearing, said Treasury is reviewing its Cuba sanctions as part of a broad agencywide sanctions review begun earlier this year (see 2106070007 and 2105280004).
The Commerce Department is working with a police agency in rural Texas to help investigate illegally exported goods, an unorthodox relationship that has sparked concern among industry lawyers and led to disputed seizures.