Mr Matthew Tuchband

Matthew Tuchband

Updates

International Trade

OFAC's new ransomware advisory
USA | 23 October 2020

The US Department of Treasury's Office of Foreign Assets Control recently issued an advisory highlighting sanctions risks associated with facilitating ransomware payments on behalf of victims targeted by malicious cyberattacks. Relatedly, the US Department of Treasury's Financial Crimes Enforcement Network issued guidance alerting financial institutions to their role in processing ransomware and associated payments, red flags and reporting information.

Sanctions on Chinese apparel companies for forced labour hit retail supply chains
USA | 18 September 2020

Fashion and luxury goods companies should be concerned about the recent sanctioning of Chinese companies in Xinjiang province by the US Departments of Treasury and Commerce and other US Customs and Border Protection (CBP) developments relating to importing products that contain fabric made with prison or forced labour. Notably, there is a risk that garments made from cotton produced by Xinjiang Production and Construction Corps could be subject to a CBP withhold release order.

US administration takes on Chinese social media
USA | 21 August 2020

President Trump recently signed an executive order (EO) banning 'transactions' – which have yet to be identified by the US Department of Commerce – relating to TikTok and its parent, ByteDance Ltd. The EO states that the spread of the Chinese mobile app continues to threaten the national security, foreign policy and economy of the United States. In addition to concerns relating to sensitive personal data, the EO points to concerns pertaining to influence operations.

Pentagon identifies 20 'Communist Chinese military companies'
USA | 07 August 2020

The US Department of Defence recently published a list of 20 Chinese companies that have been identified as 'Communist Chinese military companies', complying with a two-decade-old mandate that Congress issued during the Clinton administration. The takeaway for companies, universities and individuals is that they should proceed with caution and carefully conduct due diligence when dealing with China.

OFAC issues FAQs on latest Iran sector-based sanctions
USA | 19 June 2020

In four new FAQs, the Office of Foreign Assets Control has provided a few surprises in its clarifications of the sector-based sanctions contained in Iran-Related Executive Order (EO) 13902. The new FAQs confirm earlier guidance and provide detailed but mostly unremarkable definitions of the four sectors of the Iranian economy, as well as the goods and services used in connection with those sectors, that are targeted by EO 13902 and the meanings of the terms 'knowingly' and 'significant'.

OFAC's COVID-19 response: existing exceptions, filing and compliance flexibility and some relief for Iran
USA | 15 May 2020

Recognising that COVID-19 is further straining humanitarian needs in sanctioned countries and complicating compliance with economic sanctions, the Department of the Treasury Office of Foreign Assets Control recently issued web-based guidance to remind the public of the many ways in which medical exports and other humanitarian services, supplies and donations can legally flow to sanctioned countries, offer reporting and compliance flexibility and provide some Iran secondary sanctions relief.

Maximum pressure squared: Trump turns up Iran sanctions amplifier
USA | 21 February 2020

President Trump recently issued Executive Order 13902, which places additional large swaths of the Iranian economy – and those outside Iran which support it – in the crosshairs of US sanctions. Third-country companies doing business with Iran's construction, mining, manufacturing or textiles sectors are now at greater risk of being sanctioned.

First unilateral export control on AI software issued
USA | 14 February 2020

After a more than one-year wait, the Department of Commerce Bureau of Industry and Security (BIS) has imposed controls on its first 'emerging technology' – software specially designed to automate the analysis of geospatial imagery. This software now requires a BIS authorisation to be exported or re-exported to any country other than Canada. Companies that develop or use AI to solve geospatial problems or in geospatial applications must review the new rules closely.

BIS imposes further restrictions on Cuba and temporary sojourn licence exception
USA | 01 November 2019

The Bureau of Industry and Security (BIS) announced another major policy change towards Cuba by further restricting the Cuban government's access to items subject to BIS's Export Administration Regulations. This new rule will have a significant impact on exporters and re-exporters currently using certain licence exceptions to export to Cuba that export non-US origin products with US-origin content to Cuba and lease commercial aircraft to Cuban state-owned airlines.

Amorphous human rights due diligence for US exporters of surveillance items
USA | 18 October 2019

The US State Department recently solicited feedback on its draft US Government Guidance for the Export of Hardware, Software and Technology with Surveillance Capabilities and/or Parts/Know-How. The draft guidance aims to provide insight to exporters on the considerations to weigh prior to exporting items with intended and unintended surveillance capabilities and could foreshadow new export controls and a US State Department review.