Radio Free Asia on 22nd February reported that Cambodia was put on a watch list by FATF after it found “significant deficiencies” that left the country vulnerable to flows of hidden illegal money. Cambodia has a never prosecuted a money laundering case and its judicial system had “high levels of corruption”, FATF said. NGO activists who monitor corruption in Cambodia said the reinstatement of Cambodia on the grey list suggested backsliding since 2015 and suggested that China’s huge flow of investment in the country’s casinos, real estate and banks and stock exchanges include a lot of laundered cash.
On 5th February, a blog post on World Trade Controls posed the question: do I need to check all US denied parties lists? It explains that restricted party screening is used to identify whether a party to a transaction is subject to specific export control or sanctions restrictions imposed by the US Department of Commerce, US Department of State, and/or US Treasury. Each of these Departments maintains lists of restricted parties and imposes various restrictions on certain activities involving those listed parties (and under certain circumstances, activities involving any entity owned or controlled by such parties). The list(s) on which a party appears determines the specific export control or sanctions restrictions concerning that party, and thereby signals the compliance risks a non-US company may face when dealing with such a listed party, it says. A useful reference table is provided –
|Commerce||Denied Persons List||Parties that have been denied export privileges involving items subject to the EAR|
|Commerce||Entity List||Parties that may trigger specific EAR licensing requirements|
|Commerce||Unverified List||Parties whose involvement in a transaction presents “red flags” (additional compliance risks)|
|State||Nonproliferation Sanctions List||Parties sanctioned under various non-proliferation statutes|
|State||ITAR Debarred Parties List||Parties prohibited from engaging in transactions involving ITAR-regulated activities|
|OFAC||Specially Designated Nationals and Blocked Persons List (SDN List)||Parties subject to property blocking pursuant to various US sanctions programmes|
|OFAC||Sectoral Sanctions Identifications List (SSI List)||Parties sanctioned for operating in certain sectors of the Russian economy|
|OFAC||Foreign Sanctions Evaders List||Non-US parties determined to have violated certain US sanctions programmes|
|OFAC||Non-SDN Palestinian Legislative Council (PLC) List||Individuals of the PLC associated with certain terrorist organisations|
|OFAC||List of Foreign Financial Institutions Subject to Part 561||Foreign financial institutions subject to certain US sanctions|
It also explains how EAR and ITAR export controls interplay with the lists. The Export Administration Regulations (EAR) are administered by the Department of Commerce and prohibit the export, reexport, or transfer of items subject to the EAR to parties on the Entity List, the Denied Persons List, and in some cases, the OFAC SDN List. In addition, though not subject to these prohibitions, parties on the Unverified List are subject to certain restrictions and requirements and may not receive items subject to the EAR by means of a licence exception.
The International Traffic in Arms Regulations (ITAR) prohibit the export, reexport or re-transfer of ITAR-controlled items to parties on the Debarred List, and there are restrictions on the import into the US involving, or transfer of US-origin items under certain circumstances to, parties on the various non-proliferation sanctions lists published by the Department of State.