October 26, 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.

ANNOUNCEMENTS

We are excited to announce the launch of our Sanctioned Securities solution, a powerful tool designed to give the banking and investment management industry the data they need to confidently and efficiently address a key challenge in risk management, pre-trade transaction monitoring, exclusions, and financial crimes compliance. [Learn More.]

KHARON SNAPSHOT

Hamas Fundraising: Online Groups Raise Millions for Gaza

The Mobilization for Palestine Campaign is one of several fundraising campaigns launched in the past weeks by groups that have affiliations with Hamas and other sanctioned organizations. Learn more about this campaign and its support network in this Kharon Snapshot. [Watch Here]

THIS WEEK ON THE KHARON BRIEF

U.S. Sanctions Target Hamas's Expansive Global Investment Portfolio

A network of several key financial operatives and members of Hamas, who are involved in “a secret investment portfolio” in Sudan, Türkiye, Algeria, and Qatar, were sanctioned by the U.S. Department of the Treasury on Wednesday. [Read More]

Sign up to have the Kharon Readbook delivered to your inbox every week, click here.

Media Roundup

SANCTIONS        

The U.S. Department of the Treasury designated two individuals and four entities that form a core part of Specially Designated National and Republika Srpska President Milorad Dodik’s patronage network. [U.S. Treasury]

The U.S. Department of State imposed sanctions on three China-based companies that it said have worked to supply missile‐applicable items to Pakistan’s ballistic missile program. [U.S. State]

The U.S. FinCEN issued an alert to assist financial institutions in identifying funding streams supporting the terrorist organization Hamas. [U.S. FinCEN]

The U.S. is weighing additional sanctions on Hamas as part of efforts to constrain the militant group’s ability to access money following the Oct. 7 attack on Israel that now threatens to spark a regional war, Treasury Secretary. [Bloomberg]?

Even after U.S. designations last week targeting the group’s financial network, Hamas faces a relatively small portfolio of sanctions for a group that the U.S., European Union, and U.K. have all labeled a terrorist organization. [Bloomberg]

The EU adopted a framework for restrictive measures in view of the situation in Niger, allowing the EU to sanction individuals and entities responsible for actions that threaten the peace, stability, and security of Niger. [EU]

The EU will start consulting with member states in the coming days on a new sanctions package targeting Russia for its war against Ukraine. The new package could include a ban on Russian diamonds. [Bloomberg]

During a recent visit to Germany, the President of Kazakhstan stated that Kazakhstan will pursue comprehensive cooperation with Russia, while also adhering to the sanctions imposed against Russia. [The Diplomat]

The U.N. Security Council unanimously adopted a resolution for the renewal of its sanction regime on Haiti. [UN Press]

The Biden administration’s removal of an array of U.S. sanctions against Venezuela’s oil sector is designed to stabilize that country’s economy. [WSJ]

Global energy traders are emerging as early buyers of Venezuela's stocks of crude and fuel oil following the easing of U.S. energy sanctions. Major U.S., European, and Asian refining firms also are in talks with PDVSA to resume or expand imports of Venezuelan crude. [Reuters]

COMPLIANCE + ENFORCEMENT        

The U.S. filed a civil forfeiture complaint against a 348-foot luxury vessel reportedly worth more than USD 300 million and beneficially owned by a sanctioned Russian oligarch. [U.S. Justice]

The U.S. FinCEN announced the renewal and expansion of its Geographic Targeting Orders that require U.S. title insurance companies to identify the natural persons behind companies used in non-financed purchases of residential real estate. [U.S. FinCEN]

EXPORT CONTROLS + SUPPLY CHAIN          

The U.S.-led restrictions over advanced chipmaking equipment for Chinese firms will ultimately deter China’s efforts to develop an indigenous semiconductor industry, according to a senior American official responsible for enforcing export controls. [Bloomberg]

China is strengthening restrictions on exports of graphite, a key mineral needed for the production of electric vehicle batteries and fuel cells, the latest move in an intensifying global tussle over the building blocks of critical technologies. [WSJ]

A major tech company?says the U.S. has told it to stop shipping some of its advanced artificial intelligence chips to China immediately. The restrictions were supposed to be introduced 30 days from 17 October. [BBC]?

China is getting around U.S. attempts to curb its chip ambitions through means that include shell companies, smuggling, and the creative use of old machines. [Nikkei Asia]

HUMAN RIGHTS + FORCED LABOR        

U.S. lawmakers urged a block on imports from seafood processing facilities in China amid forced labor concerns. [WSJ]?

Western China’s Xinjiang Uyghur Autonomous Region defied Western sanctions in the first nine months of the year as its foreign trade hit a record high. [SCMP]

CRYPTO        

U.S. politicians and regulators have stepped up scrutiny of alleged links between digital currencies and terrorism. [FT]