In response to “positive actions” taken by the Government of Sudan over the past six months, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) announced today an amendment to the Sudanese Sanctions Regulations (“SSR,” 31 C.F.R. Part 538) that effectively suspends virtually all of the U.S. sanctions against Sudan by authorizing through a general license (referred to in this post as the “General License”) all transactions otherwise prohibited by the SSR and two related executive orders (13067 and 13412). The General License will take effect when it is published in the Federal Register, which is scheduled to occur on Tuesday, January 17, 2017.OFAC’s issuance of the General License accompanies a new Executive Order that President Obama signed today, which revokes, effective July 12, 2017, key provisions of the two executive orders that established the Sudan sanctions, provided that … [Read more...] about United States suspends Sudan sanctions
Why sudan is sanctioned country
To advance U.S. foreign policy and national security objectives, the U.S. maintains laws and regulations that impose economic sanctions against certain countries, individuals, and entities (the "U.S. Sanctions Program"). 31 C.F.R. § 501 et seq. The Office of Foreign Asset Control (“OFAC”) at the Department of the Treasury manages the U.S. Sanctions Program. The U.S. Sanctions Program prohibits U.S. nationals and U.S. companies from doing business in embargoed or sanctioned countries and from doing business with individuals or entities subject to U.S. sanctions laws and regulations. Penalties for violating the U.S. Sanctions Program include civil and criminal fines, imprisonment, and the loss of tax credits or export privileges. The U.S. government also prohibits cooperation with unapproved boycotts and embargoes by other countries. 15 C.F.R. § 760 et seq. The “Arab League” boycott of Israel is the … [Read more...] about Implications of U.S. Sanctions Program on Intellectual Property Owners
Due to costly settlements secured by U.S. regulatory agencies, banks, insurers, and corporations are increasingly inserting rigorous OFAC sanctions compliance language into their credit agreements, insurance policies, and corporate acquisition agreements.A current trend by banks, insurers, and acquisition-minded corporations is to insert rigorous Office of Foreign Assets Control (OFAC) sanctions compliance provisions into credit agreements, insurance policies, and acquisition agreements. This trend is no doubt driven in part by the recent surge in huge settlements obtained by U.S. regulatory agencies arising out of enforcement actions for economic sanctions violations by major banks.Many contracting parties would like to believe that the mere inclusion of OFAC compliance language in one or more contractual provisions enables a contracting party to insulate itself from OFAC liability and pass off responsibility for OFAC sanctions compliance to the contract counterparty. … [Read more...] about Office of Foreign Assets Control (OFAC) Sanctions Compliance Provisions in Agreements
We frequently discuss enforcement actions in this blog, because understanding enforcement is a key aspect of trade compliance. From a fifty-thousand foot view, each enforcement case serves as a cautionary tale about the overall need for compliance. On a more granular level, enforcement actions provide valuable insight into how the government thinks about and targets violations of law. These cases also showcase key details about international business practices that might pose “red flags,” and let us learn from others’ mistakes. Effective compliance requires companies to commit high-level attention and large dollar amounts, but also requires entities to critically respond to the facts and details of particular markets on the ground.The June 5 settlement of Netherlands-based aerospace service provider Fokker Services, B.V. (“Fokker”) with three different U.S. government agencies is a great learning tool. The proposed penalties … [Read more...] about Export Controls and Sanctions Violations Lead to $21 Million in Penalties for Fokker Services B.V.
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced an upcoming General License that will authorize transactions involving Sudan. Current U.S. sanctions regulations form a broad trade embargo that generally prohibits U.S. companies from dealings with Sudan. On Tuesday, January 17, OFAC will issue a General License that will effectively lift the embargo and unblock the Government of Sudan property currently held by U.S. companies and financial institutions. Parties looking for business opportunities involving Sudan should be aware of the remaining restrictions under the state sponsor of terrorism designation and targeted sanctions, in addition to the recordkeeping requirements and potential revocation of this authorization. State Sponsor of Terrorism ListSudan remains designated as a state sponsor of terrorism, under section 6(j) of the Export Administration Act (‘‘EAA’’) of 1979. Section 321 of the … [Read more...] about OFAC Conditionally Lifts U.S. Embargo on Sudan, but Certain Sanctions Remain