The Office of Foreign Assets Control added one individual and one entity to its Specially Designated Nationals list under Central African Republic conflict designations (here), and added two individuals to the list pursuant to Zimbabwe sanctions regulations (here), OFAC said. The agency has also frozen the assets of Tanzanian national Ali Khatib Haji Hassan (a.k.a. "Shkuba"), and has identified Hassan and the Hassan Drug Trafficking Organization as "significant foreign narcotics traffickers," pursuant to the Kingpin Act, OFAC said (here). Under the Kingpin designation, U.S. persons are "generally prohibited" from engaging in transactions with Hassan or his group.
The Bureau of Industry and Security should modify a proposed rule that would “significantly” alter the factors that BIS considers when setting penalties in various enforcement cases, said the National Customs Brokers & Forwarders Association of America in comments to the agency (here). The group said the rule (see 1512240003) could harm forwarders, NVOCCs, and exporters that might have -- “inadvertently or not” -- violated the Export Administration Regulations. The proposed changes are meant to make administrative penalties more predictable and better aligned with those used by the Office of Foreign Assets Control, BIS said in December (here). NCBFAA said it appreciates BIS’ effort to mesh its penalty enforcement guidelines with OFAC’s, but argues that, if enacted, the rule could birth an “unduly rigid enforcement mechanism.” The organization asserts the proposed process appears to be less flexible than the current one, and it believes the rule will likely prompt more enforcement cases and boost penalty amounts.
The new policy allowing for case-by-case exports and re-exports for Cuban state-owned enterprises is among the most significant of changes to trade relations between the U.S. and Cuba, said Tony Christino, Bureau of Industry and Security Foreign Policy Division Director, on Feb. 23 during a conference call focusing on the ongoing rollback. “In order to meet the needs of the Cuban people, we couldn’t ignore the state sector,” Christino said. Effective Jan. 27, the latest sanction rollbacks involved the lifting of certain payment and financing restrictions for approved exports and re-exports of non-agricultural items to Cuba, and the authorization of the use of leasing arrangements, code-sharing, and blocked airspace by Cuban airlines to facilitate U.S. travel to the country. Christino added that the Cuban government has shown interest in opening up poultry, fruit and vegetable trade with the U.S. News of the rule sparked a mixed reaction from Senate Republicans, with Jeff Flake, Ariz., urging the Obama Administration to adopt legislation that would more permanently ease travel of U.S. citizens to Cuba (here), and presidential candidate Marco Rubio, Fla., speaking out against the regulation (see 1601270004).
CGG Services, formerly known as CGGVeritas, has agreed to pay $614,250 on behalf of itself and affiliated companies to settle potential civil liability for alleged violations of the Cuban Assets Control Regulations, the Office of Foreign Assets Control said (here). OFAC recorded at least four instances between 2010 and 2011 when the oil and gas and seismic survey equipment company exported spare parts to vessels while they operated in Cuban territorial waters. CGG also allegedly illegally processed seismic data conducted in Cuba’s Exclusive Economic Zone, benefiting a Cuban company, according to OFAC. Although CGG did not voluntarily self-disclose the actions, OFAC determined the alleged violations constituted a non-egregious case, and said CGG “substantially cooperated” with the investigation.
The Office of Foreign Assets Control added two individuals to its Specially Designated Nationals list, under transnational criminal organization designations, OFAC said (here).
The Office of Foreign Assets Control added three individuals to its Specially Designated Nationals list, under counter-terrorism designations (here).
The Office of Foreign Assets Control designated a terrorist under its Specially Designated Nationals list (here).
The Office of Foreign Assets Control has not proposed any sanctions on European businesses that did business with Iran’s Islamic Revolutionary Guard Corps (IRGC), because despite past evidence of dealings, those companies have “moved away” from those activities, Acting OFAC Director John Smith told lawmakers during a Feb. 11 full House Foreign Affairs Committee hearing. “I have not seen evidence of European actors continuing to deal with the IRGC,” Smith said. Rep. Brad Sherman, D-Calif., pressed Smith for nearly two minutes about the amount of IRGC-related sanctions, and expressed skepticism about OFAC’s efforts to find entities that do business with sanctions designees. “The Treasury Department has announced that IRGC is a huge economic monolith,” he said. “You’ve only designated seven [entities], and there are a lot more firms, [but you] can’t find a single East Asian, South Asian or European business that’s doing business with them,” Sherman said as his time expired. In written testimony (here) for the hearing, Smith said secondary (non-nuclear-related) sanctions continue to be leveled against foreign entities who transact with the IRGC.
The Office of Foreign Assets Control made changes to its Specially Designated Nationals list, removing Kingpin Act and Zimbabwe designations, and updating Burundi and counter-terrorism designations (here).
OFAC on Feb. 4 issued a finding of violation to a Middle East subsidiary of Johnson & Johnson for violating Sudanese sanctions regulations, it said (here). According to OFAC, Johnson & Johnson (Middle East) Inc. in 2010 broke the regulations when it coordinated and supervised shipments of goods from Johnson and Johnson (Egypt) S.A.E. to Khartoum, Sudan. Before August 2010, Johnson & Johnson (Middle East)’s general manager for emerging markets, Middle East and North Africa, was “unfamiliar” with U.S. sanctions and wasn’t trained on compliance with OFAC regulations, OFAC said. The office did not assess any civil penalties for Johnson & Johnson, OFAC said (here).