This week’s discussion will cover the following: 6 January Investigation Update; White House Anti-Corruption Strategy; New OFAC Anti-Corruption Sanctions; DOJ Notice of Proposed Rulemaking on FARA; and ESG Update: Office of Comptroller of the Currency’s National Risk Committee Identifies Climate Change Initiative in Semiannual Risk Perspective report
On December 6, 2021, the White House issued the first ever consolidated United States Strategy on Countering Corruption. The Strategy follows President Biden’s June 3, 2021 memo that established the tackling of corruption as a central US national security interest.
A recent Washington Post article about child labor in the Brazilian acai industry underscores the need for companies to develop compliance programs intended to identify and mitigate the risk of possible child labor in their supply chains.
On December 9, 2021, the US Departments of State and Commerce amended their regulations to strengthen US export controls targeting Cambodia. According to the Federal Register notices announcing these final rules, these enhanced export control measures were adopted in response to the expanded Chinese military presence in Cambodia, as well as the corruption and human rights abuses allegedly committed by the Cambodian Government. This action builds on various public statements from the US Government this year expressing concerns about Cambodia and warning US business about conducting business in or with that country, as described in more detail below.
The Baker McKenzie International Commercial and Trade team is delighted to invite you to watch our pre-recorded webinar on the latest developments in relation to sanctions against Belarus, as at 10 December 2021. The webinar covers sanctions measures imposed against Belarus by the US, the EU, the UK, Canada and Switzerland, with a particular focus on the most recent measures announced in December 2021, in response to the migration crisis on the Belarus/EU border. The webinar lasts just over 30 minutes, and is intended to give you an overview of the developments, and the key takeaways to ensure compliance by your business
On November 26, 2021, the US Treasury Department’s Office of Foreign Assets Control published a final rule amending the Syrian Sanctions Regulations (“Final Rule”). The Final Rule expands the existing general license at § 542.516 to authorize nongovernmental organizations to engage in certain assistance-related investment activities in support of not-for-profit activities in Syria.
On November 26, 2021, the Commerce Department of Commerce published a Proposed Rule that would amend its Interim Final Rule on Securing the Information and Communications Technology and Services Supply Chain (“ICTS Regulations”) to specifically address connected software applications. The Proposed Rule would make changes prompted by Executive Order 14034 to the ICTS Regulations.
In November 2021, the State Department’s Directorate of Defense Trade Controls (“DDTC”) issued new and updated FAQs on violations, disclosures, debarments, rescissions, and reinstatements under the International Traffic in Arms Regulations. The FAQs mostly reiterate and further clarify past guidance from DDTC on related matters.
On December 2, 2021, the EU, UK, US, and Canada all imposed additional coordinated sanctions on Belarus as a punitive action against the government led by President Alexander Lukashenko, which has been accused of human rights violations and creating a migrant crisis at Belarusian borders. As further described below, the sanctions included the designation of a number of parties (individuals and entities), whilst certain individuals will also be subject to travel bans preventing them entering or transiting the EU and UK. The US has also introduced financial sectoral sanctions, similar to those already imposed by the EU, UK and Canada.
As of November 30, 2021, a number of retaliatory measures have been suspended by the European Commission with regard to certain products originating in the US, based on Implementing Regulation (EU) 2021/2083. These measures were initially introduced on June 20, 2018, in response to US import tariffs on steel and aluminium originating from the EU. The US has meanwhile announced on October 31, 2021 that it will lift these measures under tariff rate quotas effective as of January 1, 2022.