The Office of Foreign Assets Control created a resource page for information on Hong Kong-related sanctions. The page includes links to frequently asked questions, guidance on U.S. sanctions and restrictions on Hong Kong, applying for a Hong Kong-specific license and more. President Donald Trump recently issued an executive order ending preferential treatment for Hong Kong and detailing a range of sanctions authorities and export bans related to the region (see 2007150019).
Export Compliance Daily is providing readers with some of the top stories for July 13-17 in case you missed them.
The Office of Foreign Assets Control on July 17 sanctioned four entities and one person for supporting a U.S.-sanctioned Chinese drug trafficking company. OFAC also sanctioned members of Nicaragua President Daniel Ortega’s inner circle and two Nicaraguan companies.
The Office of Foreign Assets Control updated its Nicaragua Sanctions Regulations and added a general license authorizing certain U.S. government activities with Nicaragua, a notice said. The notice incorporates the Nicaragua Human Rights and Anticorruption Act of 2018 into the regulations, which includes certain technical edits and the addition of the “delegation of certain functions with respect to the NHRAA,” OFAC said. It also expands a provision of the regulations to include more clarity on blocked transactions and incorporates a previously issued general license that authorizes certain Nicaragua-related activities. The rule is effective July 17.
The Office of Foreign Assets Control on July 16 extended the expiration dates for two Ukraine-related general licenses that authorize certain transactions with U.S.-sanctioned GAZ Group. Both licenses were scheduled to expire July 22 and now expire Jan. 22, 2021. General License No. 13O, which replaces No. 13N, authorizes certain transactions necessary to divestments and debt transfers. General License No. 15I, which replaces No. 15H, authorizes certain transactions related to the “manufacture and sale of existing and new models of vehicles” -- including components, engines and commercial vehicles -- produced by GAZ Group.
A United Arab Emirates manufacturer will pay about $660,000 as part of a settlement agreement for violating U.S. sanctions against North Korea, the Office of Foreign Assets Control said in a July 16 notice. Essentra FZE Company Limited, a cigarette filter and tear tape manufacturer, illegally exported cigarette filters to North Korea through a network of front companies, including companies in China, OFAC said. Essentra FZE was paid for the shipments through a bank account belonging to a foreign branch of a U.S. bank.
The Office of Foreign Assets Control on July 15 updated a Venezuela-related general license and amended a Venezuela-related frequently asked question. General License No. 5D, which replaced No. 5C, authorizes certain transactions related to Petroleos de Venezuela involving an 8.5% bond on or after Oct. 20. The FAQ clarifies which transactions are authorized by the license.
The Office of Foreign Assets Control sanctioned three people and five entities involved in helping a Russian financier evade U.S. sanctions, OFAC said in a July 15 press release. The sanctions target Russia-based M Invest, its subsidiary Meroe Gold and two M Invest officials: Andrei Mandel and Mikhail Potepkin. OFAC also targeted Hong Kong-based Shine Dragon Group Limited, Shen Yang Jing Cheng Machinery Imp & Exp. Co., Zhe Jiang Jiayi Small Commodities Trade Company Limited and Shine Dragon Group director Igor Lavrenkov.
The Office of Foreign Assets Control removed sanctions from Yemane Gebreab, an Eritrea government official and presidential adviser. The change took effect July 10 and removes Gebreab from OFAC’s Somalia sanctions.
The Office of Foreign Assets Control fined Amazon more than $130,000 for violating several U.S. sanctions programs and failing to follow reporting requirements for hundreds of transactions. Amazon processed online orders sent to a range of sanctioned countries in the Middle East and Asia and did not follow the agency’s reporting requirements for more than 300 transactions conducted under a Crimea general license, OFAC said in a July 8 notice. OFAC said the violations were caused by “deficiencies” in Amazon's sanctions screening program.