The U.K. added 20 frequently asked questions on Aug. 15 pertaining to its Russia sanctions regime, the Office of Financial Sanctions Implementation announced. The questions cover a range of topics including securities restrictions, payment systems and financial services. The FAQs also cover the process for reviews and appeals for civil penalties and reporting requirements, which OFSI said requires individuals to report personal financial circumstances changes to OFSI "as soon as practicable." This requirement comes into play when the value of a party's economic resources changes by over 10,000 British pounds.
Data recently published by S&P Global shows which countries are supplying Russia with computer numerically controlled machine tools and components, which the U.S. and its allies have identified as a “common high priority” good that Russia is seeking to buy to support its military in violation of Western export controls and sanctions.
The U.N. Security Council, which oversees various U.N. sanctions regimes, needs permanent representation from African countries, U.N. Secretary-General António Guterres told the council in remarks this week. “We cannot accept that the world’s pre-eminent peace and security body lacks a permanent voice for a continent of well over a billion people,” Guterres said. Although Africa is “under-represented in global governance structures,” it’s “over-represented in the very challenges these structures are designed to address. Conflicts, emergencies and geopolitical divisions have an outsized impact on African countries.” He added: “The message is clear. There can be no global security without African security.”
Bulgarian national Milan Dimitrov appeared Aug. 12 in a federal court for allegedly engaging in a scheme to violate U.S. export controls, DOJ announced. Extradited from Greece, Dimitrov is charged with conspiring with Russian citizen Ilias Sabirov and Bulgarian national Dimitar Dimitrov to procure "sensitive radiation-hardened integrated circuits" from the U.S. and export them to Russia via Bulgaria (see 2012210013).
The Office of Foreign Assets Control issued a new general license this week authorizing certain transactions involving Hong Kong-based VPower Finance Security, a company sanctioned by OFAC in June for its role in a scheme to transport Russian gold and convert it into other currencies. General License 102 authorizes transactions that are “ordinarily incident and necessary to the transportation, delivery, or storage of currency; cash processing services; or maintenance" of ATMS within Hong Kong involving VPower. Those transactions are authorized through 12:01 a.m. EST Nov. 12.
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Silvaco Group, a California-based company that provides software solutions for semiconductor design, received a cautionary letter from the Office of Foreign Assets Control after disclosing possible sanctions violations involving Russia.
Russian-German national Arthur Petrov was extradited to the U.S., making his initial appearance in court Aug. 9 for allegedly committing export control violations, smuggling, wire fraud and money laundering, DOJ announced. Extradited from Cyprus, Petrov was charged for his part in a scheme to ship more than $225,000 worth of U.S.-sourced microelectronics to companies supplying weapons to the Russian military.
A new set of export controls on U.S. persons activities and other transactions could require “dramatic expansions” to some companies’ internal compliance programs, Akin Gump said this month, including additional compliance training, end-user certifications and greater due diligence of suppliers and customers.
The U.K. issued a new general license Aug. 9 authorizing certain payments and "other permitted activities" related to the insolvency proceedings involving East-West United Bank. The bank is based in Luxembourg but is owned by Russian conglomerate Sistema, which decided to close the bank after Western countries imposed sanctions against Russia for its invasion of Ukraine. The license allows any individual or entity to "make, receive, or process any payments, or take any other action, in connection with the Insolvency Proceedings." The license expires Aug. 8, 2029.