You are reading the September 2023 Update of the Bass, Berry & Sims Enforcement Roundup, where we bring notable enforcement actions, policy changes, interesting news articles, and a bit of our insight to your inbox.
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- September saw a number of enforcement actions involving Iran. First, the Office of Foreign Assets Control (OFAC) announced separate settlements with 3M and Emigrant Bank for violations of the Iranian Transactions and Sanctions Regulations (ITSR). In addition, a Virginia man was convicted of violating the International Emergency Economic Powers Act (IEEPA) and ITSR when he sent construction equipment to Iran. And the Department of Justice (DOJ) announced its first criminal resolution involving the illicit sale and transport of Iranian oil.
- September also saw noteworthy Russia-related enforcement activity. First, Maxim Marchenko was charged with seven criminal counts for allegedly procuring U.S.-origin dual-use microelectronics for the Russian war effort. Second, Sergey Karpushkin pleaded guilty after facilitating transactions with a Specially Designated Person (SDN). Lastly, the Department of Commerce’s Bureau of Industry and Security (BIS) added 28 entities to the Entity List.
- Two noteworthy Foreign Corrupt Practices Act (FCPA) settlements were announced in September. First, U.S. chemical manufacturer Albemarle paid over $200 million to settle FCPA allegations with the DOJ and Securities and Exchange Commission (SEC). Second, Clear Channel Outdoor, a Texas media company, agreed to pay more than $26 million to end an investigation into improper payments to Chinese government officials.
- BIS also announced an Anti-Boycott action in September involving Pratt & Whitney, which agreed to a boycott request in a Purchase Order (PO) but failed to report it.
- September saw a number of enforcement policy updates as well. The United States and its ‘Five Eye’ partners issued guidance related to red flags and risk areas, and BIS issued guidance to help companies prevent Russian diversion attempts. Lastly, the Department of Homeland Security (DHS) added three new entities to the Uyghur Forced Labor Prevention Act’s (UFLPA) Entity List.