A recent sanctions enforcement case highlighted the various export compliance hurdles associated with sales through overseas distributors, which is becoming one of the “greatest areas of export compliance risk,” Williams Mullen said in an Oct. 13 alert. In the case, the Office of Foreign Assets Control said Texas-based NewTek sold products to third-country distributors despite having knowledge those products were intended for an Iran-based reseller (see 2109100007), which ultimately led to sanctions violations.
President Joe Biden extended a national emergency that authorizes certain sanctions against narcotics traffickers in Colombia, the White House said Oct. 12. The traffickers continue to pose an “unusual and extraordinary threat” to U.S. security and cause “an extreme level of violence, corruption, and harm in the United States and abroad.” The emergency was extended for one year beyond Oct. 21.
President Joe Biden extended a national emergency that authorizes certain sanctions against Syria, the White House said Oct. 7. The situation in Syria continues to undermine the U.S. campaign to defeat the Islamic State group, “endangers civilians,” threatens stability in the region and poses a threat to U.S. national security and foreign policy, the White House said. The emergency was extended for one year beyond Oct. 14.
The Office of Foreign Assets Control on Oct. 8 removed Iran-based Mammut Industrial Group, its subsidiary Mammut Diesel and their aliases from the Specially Designated Nationals List. The entities, which produced and supplied military-grade, dual-use goods for Iran’s missile programs, were sanctioned in September 2020.
President Joe Biden will nominate former State Department official James O’Brien to be the agency’s coordinator for sanctions policy, the White House announced Oct. 6. O’Brien currently works at international advisory firm Albright Stonebridge but previously was the U.S. presidential envoy for hostage affairs from 2015 to 2017 and senior adviser to the secretary of state from 1989 to 2001, when he also served as a presidential envoy for the Balkans. The White House said O’Brien led a “large and successful sanctions program” during his time at the State Department and has negotiated agreements to protect intellectual property rights for scientific cooperation with China.
Sanctions could be imposed against the perpetrators of an Oct. 2 attack against members of the United Nations’ mission in Mali, which resulted in the death of one peacekeeper and injuries to others. The attack could constitute war crimes and the “involvement in planning, directing, sponsoring or conducting attacks against” peacekeepers “constitutes a basis for sanctions” by U.N. Security Council members, the UNSC said Oct. 4. The UNSC “stressed that those responsible for these killings should be held accountable, and urged all States, in accordance with their obligations under international law and relevant Security Council resolutions, to cooperate actively with all relevant authorities in this regard.”
The Office of Foreign Assets Control on Oct. 6 sanctioned four members of a Mexican drug cartel operating through the port of Manzanillo in Colima, Mexico. The sanctions target Cartel de Jalisco Nueva Generacion members Aldrin Miguel Jarquin Jarquin, Jose Jesus Jarquin Jarquin, Cesar Enrique Diaz De Leon Sauceda and Fernando Zagal Anton. OFAC said it worked with Mexico’s Financial Intelligence Unit to impose the designations. “Treasury is committed to working with partners in the U.S. and Mexican governments to expose, isolate, and disrupt CJNG members operating in Manzanillo and elsewhere,” OFAC Director Andrea Gacki said.
The U.S. and 44 other countries submitted questions this week to Russia regarding the poisoning of Russian political opposition leader Alexei Navalny, which has spurred multiple rounds of U.S. sanctions and trade restrictions targeting Russia. The queries, submitted at the Oct. 5 meeting for the Prohibition of Chemical Weapons Executive Council, regard whether Russia has fallen out of compliance with the Chemical Weapons Convention’s requirements. The U.S. has designated various Russian entities and people related to the poisoning and imposed more export restrictions on national security-controlled goods and technology (see 2103170022 and 2108230065). Russia has 10 days to respond.
The Office of Foreign Assets Control on Sept. 30 removed four entries from its Specially Designated Nationals List because they no longer warrant sanctions. The deletions are for Soho Panama, S.A.; Waked Internacional Panama, S.A.; ABIF Investment, S.A.; and Grupo La Riviera Panama, S.A.
The Office of Foreign Assets Control issued a new frequently asked question to clarify that two Venezuela-related general licenses haven’t expired. In FAQ 933, issued Oct. 1, OFAC said both General License 7C and 20B are authorized for an 18-month period, which “renews automatically for an additional 18 months on the first day of each month.” License 7C authorizes certain transactions with PDV Holding and CITGO Holding. License 20B authorizes transactions by certain international organizations with the Venezuelan government.