October 10, 2024
/EVENTS
Export Controls and Outbound Investment at a National Security Crossroads
Join Kharon's Howard Mendelsohn and BakerHostetler's Melissa Mannino for a discussion on the use of export controls and outbound investment restrictions to address national security concerns. [Register Here ]
/THIS WEEK ON THE KHARON BRIEF
US Expands UFLPA Entity List, Targets Steel and Aspartame for First Time
Last week, the U.S. Department of Homeland Security added two Chinese entities to the Uyghur Forced Labor Prevention Act Entity List. This marks the first time steel and aspartame manufacturers have been targeted. [Read More ]
House Committee: China Exploiting American Educational Partnerships to Advance Military Tech
The U.S. House Select Committee on China has released a report alleging that China is exploiting U.S. federally funded research and education partnerships with American universities to advance its tech sector, particularly in military applications. [Read More ]
Hamas Member Sanctioned for Using Italian Charity as Front for Hamas Fundraising
The U.S. Treasury has sanctioned Mohammad Hannoun, a Hamas member in Italy, for using a fraudulent charity to funnel millions to Hamas’s military wing. Under the guise of humanitarian aid, Hannoun redirected funds using Italian bank accounts, as uncovered by Kharon. [Read More ]
US Treasury Targets International Hamas Fundraising Network
The Treasury Department sanctioned several individuals and entities this week for their role in fundraising efforts for Hamas. Kharon previously reported on these networks and their ties to the terrorist group. [Read More ]
/MEDIA ROUNDUP
SANCTIONS
The U.S. Department of the Treasury designated a significant international Hamas fundraising network, including a sham charity, which plays a critical role in external fundraising for Hamas. [U.S. Treasury ]
Russian arms dealer Viktor Bout is back in business, trying to broker the sale of small arms to Yemen’s Iran-backed Houthi militants. [WSJ ]
The EU is progressing toward a package of sanctions targeting Iran for providing Russia with ballistic missiles and is aiming to approve the move later this month. [Bloomberg ]
The EU established a new sanctions framework in response to Russia’s destabilizing actions abroad, which will allow the EU to address a variety of hybrid threats. [EU Council ]
The European Parliament adopted a resolution calling for the EU and its member states to hold to account and impose personal sanctions on all those responsible for undermining democracy in Georgia, including against former Prime Minister Bidzina Ivanishvili. [European Parliament ]
The U.K. sanctioned Russian troops and defense laboratories involved in the use of inhumane chemical weapons on the battlefield in Ukraine. [U.K. Government ]
The Ukrainian government designated 90 individuals and 4 Cypriot entities under its sanctions regime related to Russia. [Ukrainian Government ]
Russia has created a “shadow fleet” of more than 400 vessels moving about 4 million barrels of oil a day, circumventing western sanctions to create billions of dollars a year in additional revenue for its war in Ukraine. [FT ]
A shadowy network of ships registered in Gabon highlights how Vladimir Putin is building an economy beyond the reach of Western sanctions. [NYT ]
Half of the shells used by Russia in Ukraine are being supplied by North Korea, according to western intelligence. [The Times ]
Singapore’s second-largest lender will stop handling any transactions involving Russia as it moves to cut exposure to the nation hit with global sanctions. [Bloomberg ]
The U.S. Department of the Treasury sanctioned the procurement director of the Rapid Support Forces for leading efforts to supply weapons to continue the war in Sudan. [U.S. Treasury ]
The EU extended sanctions for another year against individuals responsible for undermining Sudan’s stability, those involved with ISIL/Da’esh and Al-Qaeda, and certain Nicaraguan government officials and entities. [EU Council - Sudan ] [EU Council - ISIL/Al-Qaeda ] [EU Council - Nicaragua ]
China's foreign ministry announced it had imposed sanctions on three U.S. military-linked firms and 10 senior executives over U.S. weapons sales to Taiwan. [Reuters ]
COMPLIANCE + ENFORCEMENT
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published guidance for financial institutions containing best practice recommendations for complying with the Export Administration Regulations. [U.S. BIS ]
The U.K. announced the launch of the Office of Trade Sanctions Implementation (OTSI), which will strengthen the enforcement of trade sanctions and support businesses with compliance. [U.K. Government ]
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) developed a self-assessment tool to help businesses involved in the mortgage sector determine if they will have obligations under AML/CFT regulations. [FINTRAC ]
The U.S. Department of State concluded an administrative settlement to resolve an American company’s unauthorized exports of tools and wax patterns consumed in the subsequent production of casting blades used in gas turbine engines. [U.S. State ]
The U.S. Department of Justice announced the unsealing of a warrant authorizing the seizure of 41 internet domains used by Russian intelligence agents and their proxies to commit computer fraud and abuse in the U.S. [U.S. Justice ]
Three individuals were indicted for their participation in an illicit procurement network that exported sensitive U.S.-sourced microelectronics with military applications to Russia in violation of U.S. export controls. [U.S. Justice ]
The Netherlands Public Prosecution Service (OM) is demanding a prison sentence for a man whose company sold computer components to two Russian companies in circumvention of sanctions. [Netherlands OM ]
The Estonian Tax and Customs Board (EMTA) has detected nearly 600 violations on the Estonian-Russian border in the last month, as the agency moved from risk-based customs controls to full customs controls. [Estonian EMTA ]
Lithuanian customs officials intercepted four shipments of military items on passenger trains traveling from Kaliningrad to Moscow. [Lithuanian Customs ]
A dual U.S. and Iranian citizen was arrested over a scheme to violate and evade U.S. sanctions by sending digital and physical gift cards loaded with U.S. dollars to Iran. [U.S. Justice ]
TRADE CONTROLS + SUPPLY CHAIN
Two affiliated Chinese drug manufacturers targeted by forthcoming U.S. national security legislation are working on sales of some of their operations. [FT ]
RESEARCH SECURITY?
More than a dozen higher education associations sent a letter to Senate and House Armed Services Committee leaders, highlighting their recent efforts to improve research security but expressing concerns about new provisions being considered for the FY 2025 NDAA that could restrict international collaboration and hinder research efforts. [AAU ]
HUMAN RIGHTS
Pharmaceutical goods linked to forced labor in China’s Xinjiang region are making their way to Japan and the U.S. despite efforts by those countries to block such imports, trade data shows. [Nikkei Asia ]
Despite ongoing U.S. sanctions targeting Chinese companies linked to Uyghur forced labor in Xinjiang, a U.S.-based footwear and apparel company opened a new outlet in Urumqi, the region's capital. [VOA ]
The Democratic Republic of Congo plans to clamp down on companies that buy or source minerals from its war-torn eastern region, where smuggling is fueling one of the world’s worst humanitarian crises. [Bloomberg ]
CRYPTO + CYBER
A payments processor that links cryptocurrency firms to the banking system was the subject of a now-closed investigation by the U.K. Financial Conduct Authority. [Coindesk ]