November 30, 2023

The Readbook is Kharon's weekly roundup of our published pieces, upcoming events, and the best-curated news feed on the intersection?of international security and global commerce.

THIS WEEK ON THE KHARON BRIEF

In Plain Sight: Hamas Global Representatives Mobilize to Raise Money and Rally Support

Senior Hamas representatives who operate as de facto ambassadors for the terrorist organization across the Middle East, Africa, and Asia have mobilized in support of the group following the October 7 attack on Israel and the subsequent Israeli offensive in Gaza. [Read More]

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MEDIA ROUNDUP

SANCTIONS        

The U.S. Department of the Treasury sanctioned over 20 individuals and entities for their involvement in financial facilitation networks for the benefit of Iran’s armed forces, including the Islamic Revolutionary Guard Corps-Qods Force. [U.S. Treasury]

The U.S. Department of the Treasury sanctioned eight foreign-based North Korean agents that facilitate sanctions evasion, including revenue generation and missile-related technology procurement that support WMD?programs. Additionally, OFAC sanctioned cyber espionage group Kimsuky for gathering intelligence to support North Korea's strategic objectives. [U.S. Treasury]

The U.S. Department of the Treasury sanctioned Sinbad.io, a virtual currency mixer that serves as a key money-laundering tool of the U.S.-designated Lazarus Group, a state-sponsored cyber hacking group of North Korea. [U.S. Treasury]

Once a North Korean experiment in limited capitalism, the Rason Special Economic Zone appears to be the epicenter of the isolated country's growing cooperation with Russia,? including possible shipments of arms for the war in Ukraine. [Reuters]

A group of EU member states is pushing to dilute proposals by the EU aimed at cracking down on the circumvention of sanctions on Russia through third countries. [Bloomberg]

Russian companies based in the UAE are coming under greater scrutiny from local banks amid increased pressure to tackle sanctions evasion. [Bloomberg]

The son of Russian tycoon Dmitry Pumpyansky?won an appeal against sanctions the European Union introduced over Russia's invasion of Ukraine. [Reuters]

The U.S. Department of the Treasury imposed sanctions on three Mexican individuals and 13 Mexican companies linked to timeshare fraud led by the Cartel de Jalisco Nueva Generacion (CJNG). [U.S. Treasury]

The Biden administration will stick to its promise to reimpose sanctions on Nicolás Maduro’s regime in Venezuela unless he takes concrete actions to release U.S. hostages and begin democratic reforms. [Miami Herald]

Oil executives are flocking to Venezuela to take advantage of lighter U.S. sanctions, even with the risk of U.S. snapback sanctions. [Bloomberg]

COMPLIANCE + ENFORCEMENT        

The?Deputy Secretary of the U.S. Department of the Treasury said the Biden administration is asking Congress to consider the most serious reforms to the department’s sanctions powers since the terrorist attacks of 2001 to help combat the use of digital assets in illicit finance. [Bloomberg]

The U.S. FinCEN joined twelve financial intelligence units in issuing a public statement recognizing the formation of a task force, which aims to strengthen efforts to disrupt international financial flows to Hamas and other terrorist organizations. [U.S. FinCEN]

Spanish police have arrested two Brazilian brothers in the southern city of Estepona over alleged links to the Islamic State, the Civil Guard police force said. [Reuters]

EXPORT CONTROLS + SUPPLY CHAIN        

Turkey’s exports to Russia of goods vital for Moscow’s war machine have soared this year, heightening concerns among the U.S. and its allies that the country is acting as a conduit for sensitive items from their own manufacturers. [FT]

China has approved the merger of two major state-owned technology companies in a move that appears to seek the scale needed to fight growing U.S. trade restrictions. [Nikkei Asia]

Chinese-owned Nexperia BV’s acquisition of a Dutch chip firm won approval from the Dutch government, as the technology was deemed not dual-use and therefore not a threat to national security. [Bloomberg]

U.S. congressional negotiators were poised to abandon plans to use the annual defense policy bill to tighten controls on U.S. investment in Chinese technology. [Bloomberg]

HUMAN RIGHTS + FORCED LABOR        

As a China-founded e-commerce behemoth moves to list publicly in New York, U.S. lawmakers are again calling on it to prove that forced labor is not used to make its clothing. [Reuters]

CRYPTO        

A fast-growing crypto network called Tron has emerged in Israel's fight against the funding of Iran-backed militant groups from Hamas to Hezbollah. [Reuters]?

Germany's Bitcoin Group said it was taking measures to improve its internal control system, after Germany’s financial regulator ordered its subsidiary to remedy shortcomings on money laundering and terrorist financing. [Reuters]