Day: March 21, 2023
EXTRATERRITORIAL APPLICATION OF AMERICAN CRIMINAL LAW
On 21 March, the US Congressional Research Service published an updated briefing, saying that a number of US criminal laws apply extraterritorially outside of the US. Application is generally a question of legislative intent, express or implied. There are 2 exceptions. First, the statute must come within Congress’s constitutional authority to enact. Second, neither the statute nor its application may violate due process or any other constitutional prohibition. The CRS also issued an “Abbreviated Sketch” – an 8-page summary version.
UK: RUSSIA SANCTIONS – PROHIBITION ON PROVIDING TRUST SERVICES TO OR FOR THE BENEFIT OF CERTAIN PEOPLE OR ENTITIES.
On 21 March, HM Treasury advised that the UK government has acted alongside its international allies to introduce new measures that will prevent Russia from accessing UK trust services. OFSI says that there is there is evidence of UK-based trust and company service providers (TCSP) offering their services to persons to enable them to reduce the impact of sanctions in the event they become subject to them. Changes mean now that the 1,730 persons that are currently designated under regulations imposing an asset freeze are now also designated under regulation 18C (trust services). This means that it is now prohibited to provide trust services to or for the benefit of these persons, unless permitted by a licence or there is an applicable exception. The EU Sanctions blog noted that, in addition, 6 entries on the Russia sanctions list, and the entry for PJSC Sberbank. A new General Licence from HM Treasury provides for a 90-day wind-down period to undertake any activity necessary to terminate an existing arrangement.
The Isle of Man followed suit on 21 March –
OFAC: FURTHER SANCTIONS ON PROCUREMENT NETWORKS FOR IRAN UAV AND WEAPONS PROGRAMS
On 21 March, OFAC advised that it had designated 4 entities and 3 individuals in Iran and Turkey for their involvement in the procurement of equipment, including European-origin engines of unmanned aerial vehicles (UAV) in support of Iran’s UAV and weapons programs. This procurement network operates on behalf of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), which oversees several companies involved in UAV and ballistic missile development.
UK UPDATES EXPORT CONTROL LISTS IN LINE WITH WASSENAAR ARRANGEMENT ETC
On 21 March, the EU Sanctions blog reported on new amending regulations laid before Parliament on 10 March. These make the necessary amendments to UK legislation to reflect agreed changes to changes to the Wassenaar Arrangement munitions list and dual-use list, as well as changes to other multilateral export control regime lists, including those of the Australia Group and the Missile Technology Control Regime (MTCR). The changes enter into force on 31 March.
THE FOREIGN SUPPLY OF REPRESSIVE EQUIPMENT TO HONG KONG
On 16 March, a report from C4ADS says that Western companies have continued to provide the Hong Kong Police Force and the Government Flying Service with equipment, technology, and training that may aid in the repression of Hong Kong residents. It says that, between 2017 and 2022, companies in 9 foreign countries – Australia, Canada, Finland, France, Germany, the Netherlands, Singapore, UK, and US – received security-related contracts totalling more than US$171 million. These 29 foreign contracts are a subset of over 575 security-related contracts, with the rest going to Hong Kong-based companies. However, they are often the sole source of equipment such as bullets, boats, and aircraft that may support human rights abuse in Hong Kong. Australian, Canadian, Finnish, French, and Singaporean companies have remained active suppliers to the HKPF and Government Flying Service.
GOLD SHIPMENT FORFEITED AFTER NCA LINKS IT TO DRUG CARTELS
On 21 March, a news release from the NCA advised that the NCA had obtained a civil recovery order for gold worth an estimated £4 million that was being laundered by South American drug cartels. The shipment of gold weighing 104 kg was seized at Heathrow in June 2019. It was being transported from the Cayman Islands to Switzerland via Heathrow, having earlier been shipped to the Caymans on a private jet which had arrived from Venezuela.
EU ADDS 8 INDIVIDUALS AND 1 ENTITY TO IRAN SANCTIONS LISTS
EU Regulation 2023/645/EU added 8 persons and 1 entity should be included in the list of natural and legal persons, entities and bodies subject to restrictive measures, following human rights abuses in Iran.