
Sanctions Top-5 for the week ending 1 November 2019
Here are five things that happened this week in the world of economic sanctions that I think you should know about.
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- The UK Office of Financial Sanctions Implementation (OFSI) announced a £146,341 monetary penalty against Telia Carrier UK Limited, the third and largest OFSI penalty since the agency’s founding in 2016. According to an OFSI fact sheet, Telia indirectly facilitated international telephone calls to Syriatel in violation of the Syria (European Union Financial Sanctions) Regulations 2012. The penalty was reduced from £300,000 after the company exercised its right to a ministerial review.
- Iran’s construction sector is “controlled directly or indirectly by the Islamic Revolutionary Guard Corps (IRGC),” according to a finding by the US State Department announced last week. The finding authorizes secondary sanctions for the sale, supply, or transfer of certain goods used in connection with Iran’s construction sector, pursuant to Section 1245 of the Iran Freedom and Counter-Proliferation Act (IFCA). The State Department also identified four strategic materials used in connection with Iran’s nuclear, military, or ballistic missile programs, the sale of which is subject to secondary sanctions. (The announcement was timed with the renewal of a waiver to allow Russian, Chinese, and European companies to perform non-proliferation work at nuclear facilities in Iran.)
- The US Treasury Department announced that the seven countries of the Terrorist Financing Targeting Center (TFTC) have jointly sanctioned a total of 25 individuals and entities accused of supporting the IRGC and Hizballah. (The targets were previously sanctioned by the US Office of Foreign Assets Control (OFAC) in October 2018 and November 2018.) The TFTC, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates and the United States, was formed in May 2017.
- US Senators Josh Hawley, Rick Scott, and John Cornyn introduced the “Hong Kong Be Water Act,” which would mandate sanctions against government officials in Hong Kong and China under the Global Magnitsky program and blocking sanctions against certain Chinese nationals and companies. A summary of the proposed bill is available here. (Thanks for Jessica Bartlett for the tip!)
- The US State Department announced the adoption of a visa ban against Zimbabwean National Security Minister Owen Ncube under Section 7031(c) of the FY 2019 Department of State, Foreign Operations, and Related Programs Appropriations Act (aka “FORPA 2”) for his involvement in gross human rights violations connected to a crackdown on protesters and opposition figures in Zimbabwe.
Comments
You might say that Senator Hawley’s Hong Kong sanctions bill is a watered down version of the Hong Kong Human Rights and Democracy Act of 2019, which recently passed the US House of Representatives. The Be Water Act (credit to 李小龍) would direct the President to utilize existing Global Magnitsky authorities to address the situation in Hong Kong without ostensibly linking the sanctions to the US-Hong Kong Policy Act of 1992. Given the ongoing US-China trade negotiations, could the White House preempt Congress with some kung fu of its own? FORPA 2 is one option that comes to mind.
Like OFAC, OFSI’s enforcement cases are full of useful nuggets about the agency’s expectations for compliance with UK sanctions. In the Telia Carrier case, OFSI took the opportunity to remind us that “‘economic resources’ can cover a wide variety of tangible and intangible resources and can be provided directly and/or indirectly.” This includes facilitating international telephone service. OFSI’s prior two enforcement cases (here and here) involved financial services.
Time to update your speed dial. Global Investigations Review (GIR) has named the “25 most respected sanctions lawyers in Washington, DC,” including the one and only Wendy Wysong. Congrats to all the amazing lawyers on the list!
Did I miss something? Send me a message or comment on LinkedIn.
(The views expressed are my own and do not constitute legal advice. Photo from Vladislav Reshetnyak.)
