On 23 September 2022, the US Department of the Treasury’s Office of Foreign Assets Controls (OFAC) issued Iran General License D-2 (GL D-2), which amends and replaces the former Iran General License D-1 (GL D-1), and published three related Frequently Asked Questions (FAQs). GL D-2 authorizes a more expansive set of internet communication-related activities, including cloud-based software and services, that are otherwise prohibited under the Iranian Transactions and Sanctions Regulations. According to the accompanying press release, GL D-2 aims to support internet freedom in Iran by updating US sanctions guidance in light of changes in communications technology since the issuance of GL D-1 in 2014 and to respond to the Iranian government’s efforts to suppress internet access following recent anti-government movement in Iran.
Recent events have thrown the spotlight on sanctions. Sanctions provisions in facilities agreements are frequently keenly negotiated, and most lenders have minimum requirements. We typically see lenders focus more on the activities of the obligor group and its business than on the other lenders and finance parties to the transaction.
Accordingly, we anticipate many of our clients revisiting their sanctions policies and giving greater weight to mitigating risks associated with any party to a transaction becoming the subject of sanctions, not just members of the obligor group.
On Monday 3 October 2022 from 08:30 am – 10:00 am CEST, Baker McKenzie will be hosting an intimate in-person roundtable discussion on Sanctions and Export Controls in our Paris office. This event will give you the chance to ask questions to our team of experienced lawyers from Europe and the US and discuss best practices with us and your peers.
Baker McKenzie’s Sanctions Blog published the alert titled Department of Commerce Implements Additional Export Controls against Russia and Belarus and Refines Existing Controls on 22 September 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
Baker McKenzie’s Sanctions Blog published the alert titled OFAC Issues New Russia-Related Determinations, General Licenses, and Frequently Asked Questions on 22 September 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
On 9 September 2022, the US Department of Commerce’s Bureau of Industry and Security (BIS) published an interim final rule revising the Export Administration Regulations to authorize the release of certain technology and software in the context of “standards-related activity” involving entities listed on the Entity List. Comments on the impact of this action on participation in “standards-related activity” must be submitted to BIS no later than 8 November 2022.
Baker McKenzie’s Sanctions Blog published the alert titled OFAC Issues Preliminary Guidance on the Implementation of a Maritime Services Policy Ban and Related Price Exception for Seaborne Russian Oil on 20 September 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
Baker McKenzie’s Sanctions Blog published the alert titled Switzerland implements further EU sanctions to align itself with the EU on 5 September 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
Baker McKenzie’s Sanctions Blog published the alert titled OFAC extends and reissues General License authorizing certain transactions involving the Central Bank of Russia, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation on 9 September 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
Baker McKenzie’s Sanctions Blog published the alert titled Poland introduces temporary administration of sanctioned entities and asset takeovers (legislation update) on 30 August 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.