The proposed Fentanyl Eradication and Narcotics Deterrence (FEND) Off Fentanyl Act, which would use sanctions and anti-money laundering measures to counter the illicit fentanyl supply chain (see 2401110042), passed the Senate Feb. 13 as part of a $95 billion national security supplemental appropriations bill for Ukraine, Israel and Taiwan. However, the fate of the fentanyl legislation is unclear, as House Speaker Mike Johnson, R-La., criticized the Senate supplemental bill for failing to include funding for homeland border security.
Four lawmakers are urging the Biden administration to consider placing Chinese biotech company WuXi AppTec and its subsidiaries on the Commerce Department’s Entity List, the Treasury Department’s Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List and the Defense Department’s Chinese Military Companies List. They said the firm has close ties to the People’s Liberation Army (PLA) and the Chinese Communist Party (CCP) and has been involved in perpetrating the CCP's human rights violations.
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A new proposed rule from the Treasury Department could make investment advisers subject to certain anti-money laundering and counter-terrorism financing requirements under the Bank Secrecy Act. The agency said the measures could close a loophole that allows sanctioned companies, including in China, to invest in U.S. companies and access sensitive technology.
Policy experts and former government officials speaking on a panel this week mostly agreed that the U.S. should impose sectoral-based outbound investment restrictions on China rather than individual investment sanctions on specific entities, saying a sector approach would be much simpler and more effective. And although some companies say it will be too challenging to comply with a broad investment ban on sensitive Chinese technology sectors, one expert said it will be easier than the financial industry is letting on.
A New York freight forwarder agreed to complete export compliance training, but won’t face a fine, after admitting to the Bureau of Industry and Security that it illegally shipped enterprise servers and switches to Iran on behalf of an Iran-based exporter.
The U.K.’s Office of Financial Sanctions Implementation this week amended a listing under its Russia restrictions list. The agency revised the listing for Vladimir Olegovich Potanin to show that he is sanctioned for conducting business in the Russian financial services and extractives sectors.
The U.K. on Feb. 12 added four Israeli citizens to its Global Human Rights sanctions regime. The Office of Financial Sanctions Implementation added Zvi Bar Yosef, Ely Federman, Yinon Levy and Moshe Sharvit for committing human rights abuses against Palestinian individuals in the West Bank.
Upcoming know-your-customer rules for U.S. cloud service providers come with a new set of compliance risks, with providers potentially facing lability not just from the Commerce Department but also from U.S. sanctions authorities, Sidley Austin said in a client alert this month.
DOJ this week completed the forfeiture of a U.S.-origin Boeing 747 after a monthslong effort to seize the plane from Mahan Air, a sanctioned Iranian airline.