Corporations and financial institutions rely on their advice to keep abreast of current and upcoming sanctions and export control policies. In this rapidly changing political environment, do you have the knowledge you need to keep customers informed?
Both in business and finance Organizations need to be aware of their compliance and disclosure requirements, enforcement trends and priorities, and emerging risks. And it is not enough just to know about them. In all industries, companies are expected to make compliance programs a priority or risk heavy fines.
The Trump administration has implemented numerous sanctions and export control measures. These guidelines will certainly evolve under the new Biden administration. Here are some examples of the current landscape and what to expect in the coming years:
To restrict Huawei’s access to products with US semiconductor software and technology, the Trump administration’s commercial division has tried Office for Industry and Security (BIZ) Extended and extended US export control responsibilities for certain items when intended for Huawei or its affiliates listed on the BIS Entity List.
Additionally, The BIS has issued a final ruling that significantly expands restrictions on the transfer of certain items subject to “military end-use” and “military end-user” export administration regulations in China, Russia and Venezuela.
Another Trump administrative policy resulted in the adoption of the Hong Kong Autonomy Act (HKAA). The HKAA represented changes to and the tightening of Hong Kong’s export control restrictions in order to maintain Hong Kong’s autonomy. The HKAA is expanding the range of people who may be subject to U.S. sanctions – those involved in compliance should keep track.
Eventually, the Trump administration relied on economic coercion to achieve other foreign policy goals. US sanctions against Iran have continued to grow and have led to multilateral tensions. Sanctions against Russia may increase if concerns are raised about attempted interference in the presidential election. Will we see US, EU and Canada convergence on these sanctions under a Biden administration? Stay tuned.
Naturally, with sanctions come counter-sanctions. Among other things, Russia, the EU and China have increasingly taken countermeasures to take action against US sanctions and threaten economic damage to parties who decide to comply with US requirements. Such actions could affect the policies of in-depth administration.
In the face of these complex, changing issues, anyone involved in regulatory compliance should make sure they understand where we’ve been and where we’re going to help clients develop best practices for trade controls and other activities.
For over twenty years Practicing Law Institute (PLI) offered the go-to program on trade control laws and regulations. At PLI’s live webcast on December 10th Dealing with US export controls and sanctionsSenior officials from the Departments of Commerce, State, Treasury and Justice will provide an insight these topics. The program includes interactive discussions between key officials in the government agencies that regulate cross-border trade and investment, as well as senior executives and top lawyers in the field.
The Practicing Law Institute is a non-profit learning organization that aims to keep lawyers and other professionals at the forefront of knowledge and expertise. PLI was chartered by the regents of the University of New York State and founded in 1933 by Harold P. Seligson. The organization offers high quality, accredited, ongoing legal and professional education programs in a variety of formats offered by more than 4,000 volunteer schools, including prominent lawyers, judges, investment bankers, accountants, business consultants, and US and international government regulators. PLI publishes a comprehensive library of papers, course manuals, answer books and journals, which are also available on the PLI PLUS online platform. The essence of PLI’s mission is commitment to the pro bono community. Watch the upcoming PLI live webcasts here.