The U.K. last week released a threat assessment of the sanctions compliance risks involving British "cyptoasset" firms, saying those companies have likely underreported suspected sanctions breaches to the Office of Financial Sanctions Implementation since August 2022. Although most cases of noncompliance by these companies have occurred "inadvertently due to common issues such as direct and indirect exposures to" sanctioned people, the U.K. said it expects that some of the violations have involved dealings with the sanctioned Russian exchange Garantex. It also said crypto firms are "at risk of being targeted" by North Korean hackers and added that some British crypto firms are likely "facilitating transfers to Iranian cryptoasset firms with suspected links" to sanctioned parties.
The U.K. on July 24 amended the sanctions listing for energy company Litasco Middle East DMCC under its Russia sanctions list. The Office of Financial Sanctions Implementation amended the listing to note that the company is also known as LME Trading DMCC.
The Office of Foreign Assets Control this week designated North Korea-based Korea Sobaeksu Trading Company and three people working closely with the company for helping North Korea evade sanctions. OFAC said Kim Se Un, Jo Kyong Hun and Myong Chol Min are either employed by the company or work with it to help generate revenue for the North Korean government, including by deploying information technology workers overseas to earn money.
The U.K. on July 23 amended a pair of Russia sanctions licenses pursuant to the U.K. Global Irregular Migration and Trafficking in Persons Sanctions Regulation 2025.
The Office of Foreign Assets Control is now accepting licensing questions through a new online platform and is planning to retire its current callback-only telephone system on Aug. 29, the agency said this week. Users that submit questions through the online platform will receive answers about specific OFAC licenses and interpretive guidance via email or by phone. Before submitting questions, OFAC said, users are encouraged to review existing sanctions FAQs, watch OFAC’s video guidance on applying for a license, review the agency’s best practices for license applications, and check their license application status.
China this week criticized the EU’s recent decision to sanction more than 25 mainland Chinese and Hong Kong companies for supporting Russia's military-industrial complex (see 2507180017), saying the bloc’s allegations are “groundless." Beijing “is strongly dissatisfied with this and firmly opposes it,” a Ministry of Commerce spokesperson said July 21 in response to a reporter's question at a regular press conference, according to an unofficial translation.
The U.K. is accepting public comments on how the Office of Financial Sanctions Implementation can improve its civil enforcement of financial sanctions and whether it should adopt several proposed changes to its current practices. Those include:
The Office of Foreign Assets Control this week sanctioned two people and five entities involved in money laundering and importing petroleum products into territory controlled by Houthis, the group designated by the U.S. as a foreign terrorist organization in March (see 2503040008). The designations target a network across Yemen and the United Arab Emirates for being “among the most significant importers” of petroleum products and money launderers for the Houthis.
The U.K. on July 21 sanctioned United Arab Emirates-based companies Intershipping Services and Litasco Middle East DMCC for doing business involving the Russian energy sector. The Office of Financial Sanctions Implementation also issued a new general license that authorizes certain transactions with Intershipping Services involving ships owned by the government of Gabon.
Canada issued a special bulletin this month about the risks posed to companies and financial institutions by sanctions evaders, especially those looking to buy dual-use items or send money to fund terrorism. The 10-page bulletin outlines the Canadian laws that prohibit sanctions evasion, a set of evasion “indicators,” how companies should be complying with sanctions laws, and more.