BIS final rule expands end use/user and licensing in Russia, China, Venezuela

On April 28, 2020 the Department of Commerce, Bureau of Industry and Security (BIS)(1) published a final rule (the “Rule”)(2) that amends the Export Administration Regulations (EAR) to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end use or military end users in the People’s Republic of China (China), Russia, or Venezuela.

Summary

The Rule:

• Expands the licensing requirements for China to include “military end users,” in addition to “military end use”;

• Broadens the list of items for which the licensing requirements and review policy apply;

• Expands the definition of “military end use"(4);

• Creates a new reason for control and the associated review policy for regional stability for certain items exported to China, Russia, or Venezuela; and

• Adds Electronic Export Information (EEI)(5) filing requirements in the Automated Export System (AES)(6) for exports to China, Russia, and Venezuela.

Details

The Rule expands license requirements for exports, reexports, and transfers (in-country) of items intended for military end use or military end users in China, Russia, or Venezuela by expanding the requirement in 744.21(7) of the EAR to include military end users in China. “This expansion will require increased diligence with respect to the evaluation of end users in China, particularly in view of China’s widespread civil-military integration.(2)”

In addition, the Rule adds items to the list of those subject to license requirements in 744.21 subject to the military end-use and end-user license requirements in Supplement No. 2 to part 744.(8) The Rule adds the following ECCNs in the categories of materials processing, electronics, telecommunications, information security, sensors and lasers, and propulsion: 2A290, 2A291, 2B999, 2D290, 3A991, 3A992, 3A999, 3B991, 3B992, 3C992, 3D991, 5B991, 5A992, 5D992, 6A991, 6A996, and 9B990. Additionally, the Rule expands the range of items under ECCNs 3A992, 8A992, and 9A991 included in Supplement No. 2 to part 744.

The Rule adopts a license review policy of presumption of denial in 744.21(e).(7) The Rule broadens the definition of “military end use”(4) by identifying each element of the definition of “use” so that any one of the six elements standing alone, is sufficient.

In addition, the Rule relocates the existing license requirements for items described in a.y paragraph of a 9x515 or “600 series” ECCN to China, Russia, or Venezuela from 744.21 to the license requirements sections of the relevant ECCNs on the Commerce Control List (CCL)(9).

Finally, the Rule expands EEI filing requirements for exports to China, Russia, or Venezuela. The Rule revises 758.1(10) of the EAR to require filing for items destined to China, Russia, or Venezuela regardless of the value of the shipment, unless the shipment is eligible for License Exception GOV. Even if no license is required to ship an item to those destinations, the EEI filing must include the correct ECCN regardless of reason for control. Some exceptions from filing found in 758.1(c) are retained.

Background

• On June 19, 2007, BIS published license requirements of certain items intended for military end use in China.(11)

• On September 17, 2014, BIS expanded the license requirements to include military end uses and end users in Russia.(12)

• On November 7, 2014, BIS expanded these license requirements to include military end uses and end users in Venezuela.(13)

The Rule is effective June 29, 2020.

Contact the professionals at GCSG for more information on this development.

References

1. Bureau of Industry and Security: “Home Page”

2. Federal Register: “85 FR 23459-23470” - 4/28/2020. Corrections published 6/3/2020 to include each revised ECCN in full (whereas the 4/28/20 publication only published the revised portions of each ECCN.(3)

3. Federal Register: “85 FR 34306-34323” - 6/3/2020

4. Military end use: “The EAR’s current definition of military end use refers both to direct use (for parts, components or subsystems of weapons and other defense articles) and indirect use (weapon design and development, testing, repair and maintenance). This rule broadens the definition of military end use beyond any item for the ‘‘use,’’ ‘‘development,’’ or ‘‘production’’ to include any item that supports or contributes to the operation, installation, maintenance, repair, overhaul, refurbishing, ‘‘development,’’ or ‘‘production,’’ of military items.”(2) See 744.21(f) for the definition of “military end use”.(7)

5. U.S. Customs and Border Protection (CBP) Basic Import Export: “EEI” - 1/15/2014

6. U.S. Census Bureau: “AES” - 2020

7. eCFR: “15 CFR 744.21”

8. eCFR: “Supplement No. 2 to part 744”

9. BIS: “CCL”

10. eCFR: “15 CFR 758.1”

11. Federal Register: “72 FR 33646-33662” - 6/19/2007

12. Federal Register: “79 FR 55608-55615” - 9/17/2014

13. Federal Register: “79 FR 66288-66290” - 11/7/2014

BIS amends EAR to implement Australia Group decisions

On June 17, 2020 the Department of Commerce, Bureau of Industry and Security (BIS)(1) published a final rule(2) that updates the Export Administration Regulations (EAR) to implement decisions made at the February 2020 Australia Group(3) meeting. The rule amends Export Control Classification Numbers (ECCNs) 1C350, 1C351 and 2B352 on the Commerce Control List (CCL) by:

• Adding twenty-four (24) precursor chemicals, as well as mixtures in which at least one of these chemicals constitutes 30% or more of the weight of the mixture to ECCN 1C350.d;

• Amending ECCN 1C351 by adding Middle East respiratory syndrome-related coronavirus (MERS-related coronavirus); and

• Amending ECCN 2B352 by adding a technical note to indicate that cultivation chamber holding devices controlled in 2B352.b.2.b include single-use cultivation chambers with rigid walls.

The following twenty-four (24) precursor chemicals are now controlled under ECCN 1C350:

• (C.A.S. #589–57–1) Diethyl chlorophosphite;

• (C.A.S. #762–77–6) Ethyl chlorofluorophosphate;

• (C.A.S. #1498–51–7) Ethyl dichlorophosphate;

• (C.A.S. #460–52–6) Ethyl difluorophosphate;

• (C.A.S. #754–01–8) Methyl chlorofluorophosphate;

• (C.A.S. #677–24–7) Methyl dichlorophosphate;

• (C.A.S. #22382–13–4) Methyl difluorophosphate;

• (C.A.S. #14277–06–6) N,NDiethylacetamidine;

• (C.A.S. #53510–30–8) N,NDiethylbutanamidine;

• (C.A.S. #90324–67–7) N,NDiethylformamidine;

• (C.A.S. #1342789–47–2) N,NDiethylisobutanamidine;

• (C.A.S. #84764–73–8) N,NDiethylpropanamidine;

• (C.A.S. #1315467–17–4) N,NDiisopropylbutanamidine;

• (C.A.S. #857522–08–8) N,NDiisopropylformamidine;

• (C.A.S. #2909–14–0) N,NDimethylacetamidine;

• (C.A.S. #1340437–35–5) N,NDimethylbutanamidine;

• (C.A.S. #44205–42–7) N,NDimethylformamidine;

• (C.A.S. #321881–25–8) N,NDimethylisobutanamidine;

• (C.A.S. #56776–14–8) N,NDimethylpropanamidine;

• (C.A.S. #1339586–99–0) N,NDipropylacetamidine;

• (C.A.S. #1342422–35–8) N,NDipropylbutanamidine;

• (C.A.S. #48044–20–8) N,NDipropylformamidine;

• (C.A.S. #1342700–45–1) N,NDipropylisobutanamidine; and

• (C.A.S. #1341496–89–6) N,NDipropylpropanamidine.

Note: Mixtures in which at least one of the chemicals listed in ECCN 1C350.d constitutes 30% or more of the weight of the mixture are also controlled under this ECCN.

Contact the professionals at GCSG for more information on this development.

References

1. Bureau of Industry and Security: “Home Page”

2. Federal Register: “85 FR 36483-36492” - June 17, 2020

3. Australia Group: “Home Page”

BIS amending EAR to expand license requirements for military end users and uses

The Department of Commerce, Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR)(1). The rule will:

• Expand the licensing requirements for China to now include “military end users”, in addition to those intended for “military end use”.

• Broaden the items for which the licensing requirements and review policy apply.

• Expand the definition of “military end use”.

• Create a new reason for control and associated review policy for regional stability for certain items to China, Russia, or Venezuela; and

• Add Electronic Export Information filing requirements in the Automated Export System (AES) for exports to China, Russia, and Venezuela.

Contact us to learn more.

E   info@globalcompliancesg.com

W www.globalcompliancesg.com/contact

Reference(s)

1. Reginfo.gov - “Expansion of Export, Reexport, and Transfer (In-Country) Controls for Military End Use or Military End Users in the People's Republic of China (China), Russia, or Venezuela”

DDTC Revises FAQs regarding US Persons abroad

On April 6, 2020 the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) issued updated FAQs regarding US persons abroad and requests for authorization to provide defense services. The FAQs and published responses state:

1. Q: “If I request authorization for defense services that describe my current employment, do I need to cease the activities that constitute defense services until I receive authorization from DDTC?”

   A: “An applicant may proceed with the described activities on a provisional basis unless otherwise notified by DDTC.  U.S. persons who believe they may have been furnishing defense services without authorization and request authorization for current or future defense services may disclose their activities as part of their request for authorization in lieu of submitting a separate voluntary disclosure to DTCC. Such disclosures will be treated as voluntary disclosures pursuant to ITAR § 127.12 and should contain the information requested in § 127.12(c)(2).”

2. Q: “Will DDTC provide a “safe harbor” period for US persons who request authorization for defense services they are currently performing without a license?”

   A: “DDTC encourages regulated persons to obtain all required authorizations for their activities, given the U.S. national security and foreign policy reasons for which defense services are regulated. U.S. persons who believe they may have been furnishing defense services without authorization, and request authorization for current or future defense services, may disclose their activities in conjunction with their request for authorization. Such disclosures will be treated as voluntary disclosures pursuant to ITAR § 127.12 and should contain the information requested in § 127.12(c)(2). To the extent that DDTC learns of the prior unauthorized furnishing of defense services in a disclosure, the facts will be reviewed subject to the totality of the facts and circumstances. DTCC will consider the non-adoption of the 2015 proposed rule, as well as the recent promulgation of this FAQ guidance and good faith efforts by an applicant to comply with the ITAR.”

Contact us to learn more.

E   info@globalcompliancesg.com

W www.globalcompliancesg.com/contact

References

1. DDTC - Licensing FAQs 1 - 04/06/2020.

2. DDTC - Licensing FAQs 2 - 04/06/2020.

European Parliament approves EU-Vietnam trade agreement

On February 12, 2020 the European Parliament approved the EU-Vietnam trade and investment agreements (the “Agreement”).(1) The Agreement is set to enter into force in 2020 after Vietnam completes their ratification process. It is expected that the Vietnamese National Assembly will ratify the Agreement in the summer of 2020. All EU Member States must also ratify the Agreement.

Once fully implemented the Agreement will eliminate most tariffs on goods traded between EU member states and Vietnam. The Agreement represents the most comprehensive trade agreement between the EU and a developing nation. Vietnam’s developing nation status was taken into consideration and is why they were given a longer period of 10-years to eliminate duties related to many products. Some key points for the Agreement(2) include:

• EU pharmaceuticals, chemicals, and machinery will have free import conditions into Vietnam as of entry into force;

• The Agreement contains provisions addressing non-tariff barriers in the automotive sector; and

• EU companies will be able to participate on an equal footing with Vietnamese companies in bids for government authorities and state-owned enterprises.

For more information:

• Visit the European Commission’s EU-Vietnam trade agreement web page(3) at: https://ec.europa.eu/trade/policy/in-focus/eu-vietnam-agreement/

• Contact the professionals at GCSG: http://www.globalcompliancesg.com/contact

References

1. European Commission - Press corner: “Commission welcomes European Parliament’s approval of EU-Vietnam trade and investment agreements” - 12 February 2020

2. European Commission - “EU-Vietnam trade and investment agreements” text

3. European Commission - “EU-Vietnam Agreement” web page

US Treasury Publishes List of Countries Requiring Boycott Cooperation

On February 10, 2020 the U.S. Department of the Treasury (“Treasury”) published the current list of countries requiring cooperation with an international boycott.(1) On the basis of the best information currently available to Treasury they listed the following countries as requiring or potentially requiring participation in, or cooperation(2) with an international boycott:

• Iraq

• Kuwait

• Lebanon

• Libya

• Qatar

• Saudi Arabia

• Syria

• United Arab Emirates

• Yemen

References

1. Department of the Treasury, Office of the Secretary Federal Register publication - 85 FR 7618

2. Participation and cooperation are defined in section 999(b)(3) of the Internal Revenue Code of 1986. Source: FindLaw - 26 U.S.C. 999

US CBP 2020 Trade Symposium Registration Now Open

The U.S. Customs and Border Protection (CBP) 2020 Trade Symposium registration is now open. The Trade Symposium will be held in Anaheim, California on March 10-11 at the Hilton Anaheim.

Key Details

• The focus will be on International Trade Organizations, Inter-agency Collaboration, and the United States-Mexico-Canada Agreement (USMCA).

• The registration fee is $210 USD.

• Registration closes on Monday, February 10 at 4:00 p.m. EST.

• Cancellations must be received in writing on or before February 21 for a full refund.

• CBP has a hotel room block for $169.

• Host hotel is the Hilton, Anaheim.

References

• USCBP - Trade Symposium (About)

• USCBP - Trade Symposium (Register)

US Imposes Additional Sanctions on Iran's Industry

On January 10, 2020 the U.S. President issued an Executive Order(1) establishing additional sanctions on Iran. The new sanctions target the construction, mining, manufacturing, and textile sectors of the Iranian economy.

“We are also designating Iran’s largest metals manufacturers, and imposing sanctions on new sectors of the Iranian economy including construction, manufacturing, and mining”(2), said Secretary Steven T. Mnuchin.

The Executive Order blocks the property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any US person of the following:

• The 13 largest steel and iron manufacturers and the top aluminum and copper companies in Iran including Mobarakeh Steel Company, Saba Steel, Hormozgan Steel Company, Esfahan Steel Company, Oxin Steel Company, Khorasan Steel Company, South Kaveh Steel Company, Iran Allow Steel Company, Golgohar Mining and Industrial Company, Chadormalu Mining and Industrial Company, Arfa Iron and Steel Company, Khouzestan Steel Company and Iranian Ghadir Iron & Steel Company, Iran Aluminum Company, Al-Mahdi Aluminum Corporation, Khalagh Tadbir Pars Co, and the National Iranian Copper Industries.

• China entities Pamchel Trading Beijing Co Ltd, Hongyuan Marine Co Ltd and Seychelles-based (Power Anchor Limited a front company for Pamchel Trading Beijing Co, Ltd) entities; and a vessel (Hong Xun) involved with Iranian metals products.

• Oman-based Reputable Trading Source LLC, which is owned or controlled by Khouzestan Steel Company.

• Senior Iranian officials involved in recent ballistic missile strikes.

In addition, the Secretary of the Treasury is authorized to sanction foreign financial institutions that knowingly conduct or facilitate any significant financial transaction in contradiction to the Executive Order. See the Executive Order for additional restrictions and details.

Contact the professionals at GCSG for more information on this development.

References

1. Executive Order on Imposing Sanctions with Respect to Additional Sectors of Iran - January 10, 2020

2. US Department of the Treasury Press Release: “Treasury Targets Iran’s Billion Dollar Metals Industry and Senior Regime Officials” - January 10, 2020

US DOJ Revises Export Control and Sanctions Enforcement Policy

On December 13, 2019 the US Department of Justice (“DOJ”) re-issued a revised Voluntary Self-Disclosure Policy(1) (“VSD Policy”) for export control and sanctions violations. The revised VSD Policy is effective December 13, 2019 and it supersedes prior guidance issued by the US DOJ’s National Security Division in October 2016. The updated VSD Policy will be incorporated into the Justice Manual(2). Three changes from the prior guidance include(3):

• Provides more clarity on the benefits available to companies that voluntarily self-disclose violations, fully cooperate with the DOJ, and timely and properly re-mediate the issues;

• Clarifies that disclosures of willful conduct to regulatory agencies and not to DOJ will not qualify for the benefits provided under the VSD Policy; and

• The definitions(1) of “Voluntary Self-Disclosure”, “Full Cooperation”, and “Timely and Appropriate Remediation” were modified to more closely align with the Departments FCPA Corporate Enforcement Policy.

References

1. US DOJ - “Export Control and Sanctions Enforcement Policy for Business Organizations” - December 13, 2019

2. US DOJ - “Justice Manual”

3. US DOJ Press Release - “Department of Justice Revises and Re-Issues Export Control and Sanctions Enforcement Policy for Business Organizations” - December 13, 2019

Revised OFAC Rule Requires Rejected Transaction Reporting

On June 21, the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”)(1) issued an interim final rule(2) that included, among others, new requirements for all US Persons to file reports on rejected transactions. In the past the requirement to report on rejected transactions only applied to financial institutions that rejected a “funds transfer” where processing the transaction may violate OFAC’s rules.

Reports on Rejected Transactions

The rule revises § 501.604(3) to:

• Clarify that the section applies to all rejected transactions (not only to rejected funds transfers)

  • OFAC replaced references to “rejected fund transfers” with references to “rejected transactions” and added a definition for the term “transactions”

  • The term transaction includes transactions related to wire transfers, trade finance, securities, checks, foreign exchange, and goods or services(3);

• Provide additional details around the information that should be provided to OFAC in connection with reports on rejected transactions;

• Provide guidance on where/how to report the information on rejected transactions; and

• Make other technical and conforming changes.

Other Revisions

• Revising § 501.603(4) to provide more detail regarding information to be reported in connection with blocking reports;

• Revising § 501.801(5) to include information regarding OFAC’s electronic license application procedures; and

• Other technical and conforming changes to § 501.602(6), § 501.701(7), and § 501.806(8).

The interim final rule was effective on June 21, 2019 and comments were allowed to be submitted until July 22, 2019.

Contact our Advisory team to learn more about this rule change.

References

1. US Department of the Treasury - Office of Foreign Assets Control

2. 84 FR 29055-29062

3. 31 CFR 501.604

4. 31 CFR 501.603

5. 31 CFR 501.801

6. 31 CFR 501.602

7. 31 CFR 501.701

8. 31 CFR 501.806

OFAC Publishes a Framework for Compliance

On May 2, 2019 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)(1) published “A Framework for OFAC Compliance Commitments”(2). The publication is intended to provide OFAC’s perspective, to entities subject to US jurisdiction, on what are essential components of an effective sanctions compliance program.

“OFAC developed this framework in our continuing effort to strengthen sanctions compliance practices across the board…This underlines our commitment to engage with the private sector to further promote understanding of, and compliance with, sanction requirements.” - Andrea M. Gacki, Director of the Office of Foreign Assets Control (3)

Summary

• OFAC continues to emphasize and “strongly encourage” entities subject to U.S. jurisdiction to take a risk-based approach to sanctions compliance by “developing, implementing, and routinely updating a sanctions compliance program (“SCP”).

• Regardless of company size, sophistication, products/services, geographic locations, etc…each SCP should incorporate at least these five (5) components: management commitment, risk assessment, internal controls, testing and auditing, and training.

• In enforcement cases, OFAC will evaluate an entities SCP against the Economic Sanctions Enforcement Guidelines (the “Guidelines”)(4) and when applying the Guidelines will favorably consider an entity that had an effective SCP in place at the time a violation occurred.

A Few Key Points

• Management Commitment

  • Effective senior management commitment, among others, includes providing adequate resources for compliance and support for the authority of compliance personnel within the organization.

  • Adequate resources includes ensuring there are enough personnel with sufficient expertise dedicated to compliance, and adequate information technology, and other resources, as appropriate.

• Risk Assessment(5)

  • OFAC recommends a risk-based approach to implementation of a SCP and one of the integral components of this approach is to conduct periodic risk assessments.

  • The assessment should include, among others, a review of customers, vendors, products, services, third-party intermediaries, and geographic locations.

• Internal Controls

  • An effective SCP should include policies and procedures. These policies and procedures should be enforced and updated when weaknesses are detected or requirements change.

  • Sufficient personnel should be appointed to ensure proper integration of the company’s policies and procedures into the daily operation of the company.

  • The organization should clearly communicate their policies and procedures to all relevant staff.

• Testing and Auditing

  • An effective SCP include’s a comprehensive and objective testing or audit function that identifies program weaknesses and deficiencies.

  • Any deficiencies identified, including software systems, should be addressed.

• Training

  • An effective training program is considered an integral component of a successful SCP. The training should be provided to all appropriate employees and personnel on a periodic basis (at a minimum, annually).

• Root Causes of OFAC Compliance Program Breakdowns - OFAC has identified the following common areas where deficiencies resulted in sanctions compliance failures:

  • Lack of a formal OFAC sanctions compliance program;

  • Misinterpreting, or failing to understand the applicability of, OFAC’s regulations;

  • Facilitating transactions by non-US persons (including through or by overseas subsidiaries or affiliates);

  • Exporting or re-exporting US-origin goods, technology, or services to OFAC sanctioned persons or countries;

  • Utilizing the US financial system, or processing payments to or through US financial institutions, for commercial transactions involving OFAC-sanctioned persons or countries;

  • Sanctions screening software or filter failures;

  • Improper due diligence on customers/clients;

  • De-centralized compliance functions and inconsistent application of their SCP; and

  • Utilizing non-standard payment or commercial practices.

Contact us to learn more about OFAC’s guidance and to find out how GCSG’s Advisory and Audit teams can guide and partner with you to reduce your sanctions compliance risk and protect your company’s bottom line and reputation.

References

• (1) OFAC - administers and enforces U.S. economic and trade sanctions programs against targeted foreign governments, individuals, groups, and entities.

• (2) OFAC: "A Framework for OFAC Compliance Commitments” - 05/02/2019.

• (3) US Department of the Treasury Press Releases: “OFAC Issues a Framework for Compliance Commitments” - 05/02/2019.

• (4) 74 FR 57593-57608: “31 CFR 501 - Economic Sanctions Enforcement Guidelines” - 11/9/2009.

• (5) Risks in sanctions compliance are potential threats or vulnerabilities that, if ignored or not properly handled, can lead to violations of OFAC’s regulations and negatively affect an organization’s reputation and business.(2)

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Bribes and Backdoor Deals Help Foreign Firms Sell to China’s Hospitals | The New York Times

“A review of dozens of Chinese court cases and internal corporate documents as well as interviews with company insiders showed how foreign firms have become deeply enmeshed in the corruption pervading China’s health care industry.” (Click here for the article) - China, Global

Expedia Settles Alleged Violations of U.S. Sanctions on Cuba | Wall Street Journal

“Expedia Group Inc. agreed to pay more than $325,000 to settle allegations that it violated U.S. sanctions on Cuba, the Treasury Department said.” (Click here for the article) - Cuba, United States

Exploring the causes of persistent corruption | PHYS ORG

“Corruption impedes equitable development, destabilizes societies, and undermines the institutions and values of democracy. It is viewed by many as one of the world's greatest problems. According to a Gallup poll, a majority of people even place its negative impacts ahead of global problems like climate change, poverty and terrorism.” (Click here for the article) - Global

Europol highlights Russian money as biggest laundering threat | Reuters

“Europe's Baltic states are at risk from further Russian money laundering, a top European police official said after several big banks were hit by scandals centred on the region.” (Click here for the article) - Russia, China, Latvia, Lithuania, Estonia

Treasury Sanctions Iran’s Largest Petrochemical Holding Group | U.S. Department of the Treasury

“The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action today against Iran’s largest and most profitable petrochemical holding group, Persian Gulf Petrochemical Industries Company (PGPIC), for providing financial support to Khatam al-Anbiya Construction Headquarters (Khatam al-Anbiya), the engineering conglomerate of the Islamic Revolutionary Guard Corps (IRGC).  In addition to PGPIC, OFAC is designating PGPIC’s vast network of 39 subsidiary petrochemical companies and foreign-based sales agents.” (Click here for the article) - Iran, USA

Mexico joins the anti-bribery enforcement bandwagon | The FCPA Blog

“Anti-corruption law has never been thought to hold much sway in Mexican affairs. Despite a nominal prohibition of bribery and graft and an abundance of recent corruption scandals, the country’s history of minimal enforcement has fostered an expectation of impunity...That may no longer be the case. In his successful campaign for office last year, Mexico’s President Lopez Obrador promised an administration that would fight corruption by taking on the “mafias of power” -- politicians and industry magnates who have enriched themselves through dubious federal contracting practices.” (Click here for the article) - Mexico

House begins debate on new NAFTA ratification bill | CTV News

“Members of Parliament began debating the new NAFTA implementation bill in the House of Commons on Tuesday. Foreign Affairs Minister Chrystia Freeland began the debate by extolling the benefits of the deal, saying Canada is ready to ratify the trilateral trade pact, as soon as the U.S. and Mexico are.” (Click here for the article) - Canada, Mexico, US

Vietnam says some Chinese exporters are using fake ‘Made-in-Vietnam’ labels to avoid US tariffs | The Daily Caller

“Some Chinese exporters are putting fake “Made-in-Vietnam'“ stickers to try to avoid U.S. tariffs, Vietnam alleged Sunday.” (Click here for the article) - Vietnam, China, US

India lost over 90,000 crore to trade misinvoicing, says GFI report | livemint

“India lost a staggering $13 billion, over ₹90,000 crore, to trade misinvoicing, equivalent to 5.5% of the value of the country's total revenue collections in 2016, according to a report by the US-based think tank Global Financial Integrity.” (Click here for the article) - India, China

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

The anatomy of a scam: How far fraudsters will go to steal your money  | Ottawa Citizen

“Gone are the days a Nigerian prince would email you, promising untold riches in exchange for a small payment upfront. Today’s scams are more intimate. Fraudsters craft tailored messages and emails; fake identities; real world addresses for not-so-real companies; websites; phone numbers; a significant corporate presence online; multiple email addresses; and even apparent news coverage from reputable sources.” (Click here for the article) - Global, Canada

Why corruption matters in the EU elections  | Transparency International

“Over the next four days, citizens from 28 countries across the European Union (EU) will cast their vote in one of the largest democratic elections worldwide. With 751 seats at stake in the European Parliament and each Member of Parliament (MEP) poised to serve a five-year term, there’s a lot riding on these elections.” (Click here for the article) - European Union

How does someone get scammed into buying $160,000 in gift cards?  | Marketplace Morning Report

“How does someone get scammed into buying $160,000 in gift cards? Nordstrom goes small.” (Click here for the article) - Global

Trade War: What Chinese Entrepreneurs Really Think  | FINEWS ASIA

“As the U.S.-Chinese trade tussle weighs heavily in Asia, what do Chinese entrepreneurs truly think about the conflict? finews.asia asked an Asian family office.” (Click here for the article) - USA, China

How to Demonstrate Your Value as an Anti-Fraud Professional  | ACFE

“The biggest challenge people have when working toward professional advancement is understanding how to communicate the value their expertise and experience can bring to decision-makers. Whether it’s a new job, a promotion, or signing on a new client or customer, the message must be about how your expertise and value solve their problems.” (Click here for the article) - Global

New EU-wide whistle-blower rules approved  | GCSG

“On April 16, the European Parliament voted(1) in favor of adopting new European Union (“EU”) wide standards to protect whistle-blowers. The standards are designed to protect whistle-blowers that reveal breaches of EU law in areas of public procurement, financial services and tax, money laundering, product and transport safety, protection of the environment, food and feed safety, animal health and welfare, nuclear safety, public health, security of network and information systems, competition, consumer and data protection, fraud, corruption and any other illegal activity affecting the use of Union expenditures.” (Click here for the article) - European Union

Top 5 Cyber Security Threats for Executives  | Prescient

“High profile cyber incidents such as massive data breaches have become increasingly common across industries, especially in the past two years. Such events speak to the shift in perception for cyber crimes–from an overlooked and niche concern to a public, major security problem for organizations across industries. Everything from manufacturing, healthcare, and traditionally higher risk sectors such as banking and technology have been privy to such incidents. In the corporate realm, senior executives are primary targets of hackers, fraud and phishing scams due to their high level of access to valuable corporate information.” (Click here for the article) - Global

U.S. Terminates Turkey’s Preferential Trade Agreement, Reduces Tariffs on Steel  | US News & World Report

“The United States on Thursday terminated Turkey's preferential trade treatment that allowed some exports to enter the country duty free, but it has halved its tariffs on imports of Turkish steel to 25%.” (Click here for the article) - USA, Turkey

New US Sanctions on Iran's Iron, Steel, Aluminum, and Copper Sectors

On May 8, 2019, the Trump administration issued an Executive Order (EO)(1) establishing new sanctions on Iran’s iron, steel, aluminum, and copper sectors. A few key points from the EO include, but are not limited to, the following:

• “All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person(2) of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: any person determined by the Secretary of the Treasury, in consultation with the Secretary of State”:

  • to be operating in the iron, steel, aluminum, or copper sector of Iran, or to be a person that owns, controls, or operates an entity that is part of the iron, steel, aluminum, or copper sector of Iran;

  • to have knowingly engaged, on or after the date of this order, in a significant transaction for the sale, supply, or transfer to Iran of significant goods or services used in connection with the iron, steel, aluminum, or copper sectors of Iran;

  • to have knowingly engaged, on or after the date of this order, in a significant transaction for the purchase, acquisition, sale, transport, or marketing of iron, iron products, aluminum, aluminum products, steel, steel products, copper, or copper products from Iran;….

In addition to the above, there are additional prohibitions on financial institutions and financial transactions (occurring with the noted sectors). The prohibitions included in the EO include:

• the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked; and

• the receipt of any contribution or provision of funds, goods, or services from any such person.

Contact your GCSG Trade Compliance professionals for assistance in understanding how to reduce your risk and how this EO may affect your business.

References

(1) Executive Order (EO) on “Imposing Sanctions with Respect to the Iron, Steel, Aluminum, and Copper Sectors of Iran” - May 8, 2019

(2) United States person - means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.(1)

(3) Knowingly - with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.(1)

(4) Entity - means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization.(1)

Network of Iranian front companies disrupted by OFAC

On March 26, 2019 the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced(1) it had taken action against a network of 25 individuals and entities that had transferred over a billion dollars to the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

The evasion scheme included a layered network of front companies and agents based in Iran, UAE, and Turkey that were set up to evade international sanctions and to gain access to the international financial system. The network exchanged devalued Iranian rials for dollars and euros.

“We are targeting a vast network of front companies and individuals located in Iran, Turkey, and the UAE to disrupt a scheme the Iranian regime has used to illicitly move more than a billion dollars in funds…Central to this network and sanctioned today pursuant to our counter terrorism authority is Iran's IRGC-controlled Ansar Bank and its currency exchange arm, Ansar Exchange, both of which used layers of intermediary entities to exchange devalued Iranian rial ultimately for dollars and euros to line the pockets of the IRGC and MODAFL…” (1)

Five front companies- UAE-based Sakan General Trading, Lebra Moon General Trading, and Naria General Trading, and Turkey-based Atlas Doviz, and the Iran-based Hital Exchange provided $800 million in funds to Ansar exchange.

Now more than ever, it is vitally important that global companies implement third-party due diligence and engagement policies. These policies are often risk-based but should be comprehensive and include at a minimum background investigation diligence and ongoing monitoring of distribution networks and contract agents.

Contact our Due Diligence compliance professionals at GCSG today to learn how we can help you mitigate your third-party risk with our due diligence reports, risk-ranking tool, policy development and implementation support, and international boots-on-the-ground third-party Audits.

References

(1) U.S. Department of the Treasury Press Releases - “United States Disrupts Large Scale Front Company Network Transferring Hundreds of Millions of Dollars and Euros to the IRGC and Iran’s Ministry of Defense.” - March 26, 2019

USTR Grants First Round of Section 301 Tariff Product Exclusions

The Office of the United States Trade Representative (USTR) recently published a notice of product exclusions(1) related to the Section 301 tariffs that were imposed on certain product imports from China on July 6, 2018. The product exclusions apply as of July 6, 2018 and will extend for one year after the date of the publication of the exclusion notice (published on December 28, 2018).

The general and specific product exclusions that were granted are listed below:

(i) Linear acting steering actuators and cylinders: 8412.21.0075

(ii) Water Dispensers: 8418.69.0120

(iii) Injection molding tools: 8480.71.8045

(iv) Radial Bearings/ Radial Ball Bearings: 8482.10.5044

(v) Ball Bearings: 8482.10.5048

(vi) Ball Bearings: 8482.10.5052

(vii) Citizen Band Radios: 8525.60.1010

(viii) Spark-ignition engines for marine propulsion, outboard, each rated at not less than 29.83 kW but not more than 44.74 kW (described in statistical reporting number 8407.21.0080)

(ix) Welded hydraulic linear acting (cylinders) engines and motors, each with piston bore of 12.7 mm or more but not over 34.6 mm, with stroke not over 11.43 m, overall length not over 15.24 m and rod diameter not over 1.219 m (described in statistical reporting number 8412.21.0030)

(x) Stretchers of stainless steel, designed to move rollers to adjust tension of paper fabric to be dried, each with a pivoting arm with an actuator, linear rail movement with an actuator, and front and back units with mounting holes for tube roll bearing housings (described in statistical reporting number 8419.90.2000)

(xi) Roller machines with dies for embossing paper, manually powered (described in statistical reporting number 8420.10.9080)

(xii) Salad spinners of plastics, with capacity of at least 2.4 liters but not more than 3.8 liters (described in statistical reporting number 8421.19.0000)

(xiii) Nonelectric water filtration apparatus consisting of three cylinder-shaped filter cartridges, each measuring 6.35 cm by 26.67 cm, having water storage tank and plastic tubing measuring 0.63 cm or more but not over 0.95 cm, presented with installation kit (described in statistical reporting number 8421.21.0000)

(xiv) Winches, each having a winch frame with a corrosion resistant coating and stainless steel mandrel with nylon bushings, operated manually by a worm gear mechanism (described in statistical reporting number 8425.39.0100)

(xv) Elevators, comprising L-shaped steel buckets bolted to a steel chain, with guide rollers and a drive system (described in statistical reporting number 8428.32.0000)

(xvi) Belt conveyors, each comprising a frame with leveling feet, electric motor and food grade plastic conveyor belt (described in statistical reporting number 8428.33.0000)

(xvii) Belt conveyors, each comprising a welded frame with leveling feet and casters, electric motor and food grade plastic modular conveyor belt (described in statistical reporting number 8428.33.0000)

(xviii) Guards of stainless steel, designed to shield operators of papermaking machines from moving or rotating equipment, each with dimensions ranging from 30 cm by 30 cm by 50 cm to 50 cm by 50 cm by 4 m, weighing 30 kg or more but not over 100 kg (described in statistical reporting number 8439.99.1000)

(xix) Scrapers (“doctors”) of stainless steel, designed to scrape impurities from the rotating roll surface of the forming and press sections of papermaking machines, each comprising a beam with a blade of non-symmetrical cross section, long aspect ratio, and mounting journals and turning devices on either end, with dimensions ranging from 50 cm by 50 cm by 8 m to 60 cm by 6 m by 11 m, weighing 1 metric ton or more but not over 3 metric tons (described in statistical reporting number 8439.99.1000)

(xx) Frameworks of the forming and press section of papermaking machines, of stainless steel or cladded mild steel with stainless or acid proof steel, each with dimensions ranging from 1 m by 1 m by 1 m to 2.3 m by 2.3 m by 12 m, weighing 500 kg or more but not over 40 metric tons (described in statistical reporting number 8439.99.1000)

(xxi) Guides of stainless steel, designed for locating conveyer belts on papermaking machines, each with a moving arm with an actuator and front and back units with mounting holes for tube roll bearing houses, each with dimensions ranging from 40 cm by 50 cm by 30 cm to 1 m by 1 m by 50 cm, weighing 300 kg or more but not over 500 kg (described in statistical reporting number 8439.99.1000)

(xxii) Rollers of steel and cast iron (“nip rollers”) with bearing journals on either end, designed for use in paper manufacturing to mechanically compress paper web to remove water or impart desired mechanical properties in paper web, each with a polymer cover, the foregoing with length of 7 m or more but not over 12 m, with diameter of 1 m or more but not over 1.5 m, weighing 15 metric tons or more but not over 30 metric tons (described in statistical reporting number 8439.99.1000)

(xxiii) Open containers (“savealls”) of stainless steel, designed to catch water run off generated in the papermaking process, constructed of large square shaped plates and flat constructions with mounting holes on ends, each with dimensions ranging from 50 cm by 50 cm by 50 cm to 1.5 m by 1 m by 10 m, weighing 50 kg or more but not over 2 metric tons (described in statistical reporting number 8439.99.1000)

(xxiv) Stretchers of stainless steel, designed to move rollers of papermaking machines to adjust tension of fabric, each with a pivoting arm with an actuator, linear rail movement with an actuator and front and back units with mounting holes for tube roll bearing housings (described in statistical reporting number 8439.99.1000)

(xxv) Suction boxes of stainless steel, which remove water from paper web or papermaking fabrics during papermaking, each with dimensions ranging from 50 cm by 50 cm by 8 m to 1 m by 1 m by 10 m, weighing 1.5 metric tons or more but not over 2 metric tons (described in statistical reporting number 8439.99.1000)

(xxvi) Rollers of stainless steel or cast iron, designed for use in paper manufacturing to support and convey papermaking cloth (i.e. fabric) or the paper web, each weighing 7 metric tons or more but not over 20 metric tons, measuring 7 m or more but not over 12 m in length, with diameter of 40 cm or more but not over 1.5 m, presented with bearing journals on either end and a polymer cover (described in statistical reporting number 8439.99.1000)

(xxvii) Work stands designed to use with miter saws, each with metal tube frame, 4 metal legs and 2 metal extension arms (described in statistical reporting number 8466.92.5010)

(xxviii) Work stands designed for use with miter saws, each with wheels to make work stand mobile and with sides that fold up to extend the work area (described in statistical reporting number 8466.92.5010)

(xxix) Angle cock handle assemblies, of iron and steel, each measuring 11.43 cm by 21.59 cm by 5.08 cm and weighing 0.748 kg (described in statistical reporting number 8481.90.9040)

(xxx) Radiation therapy systems, each encased by steel-based structural shell with gantry cover comprising three pairs of plastics-based panels (described in statistical reporting number 9022.14.0000)

(xxxi) Thermostats designed for air conditioning or heating systems, not designed to connect to the internet, the foregoing designed for wall mounting (described in statistical reporting number 9032.10.0030)

Contact GCSG’s Trade Compliance professionals for more guidance and information.

References

• (1) 83 FR 67463-67468 - Notice of Product Exclusions - 12/28/2018

• 82 FR 40213-40215 - Notice of initiation of investigation - 08/24/2017

• 83 FR 14906-14954 - Notice of determination - 04/06/2018

• 83 FR 28710-28756 - Notice of action - 06/20/2018

• 83 FR 33608-33728 - Request for comments and notice of public hearing - 07/17/2018

• 83 FR 38760-38761 - Extension of public comment period - 08/07/2018

• 83 FR 40823-40838 - Notice of action - 08/16/2018

• 83 FR 47974-48192 - Notice of modification of action - 09/21/2018

• 83 FR 65198-65199 - Notice of modification of action - 12/19/2018

• Office of the United States Trade Representative - Home Page

EU - Japan trade agreement effective on Feb 1, 2019

On February 1, 2019 the European Union (EU) - Japan Economic Partnership Agreement (EPA) becomes effective. The EPA creates a trading area that covers 600 million people and close to a third of global gross domestic product.

“The EPA is the biggest trade agreement concluded to date by the EU. 99% of the tariffs applied on EU exports to Japan which currently amount to €1 billion, will be removed.”(1)

The EU exports more than €58 billion in goods and €28 billion in services to Japan each year.(2)

References

1. European Council Press Release - “EU-Japan trade agreement will enter into force on 1 February 2019” - 21/12/2018

2. European Commission - “EU-Japan Economic Partnership Agreement” - Official Page

3. European Commission - “Fact sheets about the agreement” - News archive

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Global Executives Cooling on M&A Deals Amid Trade Uncertainty | Industrial Distribution

"Executives around the world are cooling to the idea of mergers and acquisitions in the face of rising trade tensions, notably between the U.S. and China, a leading adviser on international corporate deals said Monday." (Click here for the article) - Global

US Imposes Additional Sanctions on Russia | Thompson Hine

"The United States has announced additional financial sanctions on three individuals and nine entities supporting Russia’s attempt to integrate the Crimea region of Ukraine through private investment and privatization projects or engaging in serious human rights abuses in furtherance of Russia’s occupation or control over parts of Ukraine." (Click here for the article) - EU, US, Russia, Ukraine

Africa church leaders join fight against graft | The FCPA Blog

"Eliud Wabukala, a retired Anglican archbishop, became chairman of Kenya's Ethics and Anti-Corruption Commission in 2017. In September, he launched a bible-based anti-graft campaign that includes an anti-corruption bible study." (Click here for the article) - Kenya, Africa

The Growing Menace of Cyber Attacks in the Asia-Pacific region | Entrepreneur Asia Pacific

"Over the past few years, cyber attacks have emerged as one of the biggest global threats to businesses and governments. In September, the largest social networking platform, Facebook announced that data of at least 50 million accounts have been exposed to hackers through a breach." (Click here for the article) - Asia-Pacific region

Top Ten Things to Know About Expanded US Sanctions on Iran | Latham & Watkins

"As reported in the Latham Client Alert dated May 10, 2018, President Trump announced on May 8 that the United States was withdrawing from the Joint Comprehensive Plan of Action (JCPOA), the January 2016 nuclear non-proliferation agreement among China, France, Germany, Russia, the United Kingdom, the US and Iran..." (Click here for the article) - US, Iran

US DOJ Unveils New China Initiative | Thompson Hine

"On November 1, 2018, U.S. Attorney General Jeff Sessions announced the creation of a “China Initiative” aimed at identifying priority Chinese trade theft cases for investigation and enforcement." (Click here for the article) - US, China

Illicit Procurement Network Used Firms in China, Portugal, and Turkey to Supply Iran | Iran Watch

"A recently unsealed indictment provides detail on Iran’s use of deceptive practices to procure export controlled items with military applications from the United States and elsewhere. The indictment details an elaborate, multi-year conspiracy directed by an Iranian-born Canadian to procure such items for an Iranian firm, with help from co-conspirators in China, Portugal, and Turkey." (Click here for the article) - US, Iran, Canada, China, Portugal, Turkey

Romanian anti-corruption prosecutors targeted by new work requirements | Euractiv

"Romanian prosecutors said they feared for their jobs and the rule of law after a new government ordinance increasing the years of professional experience required of them was published...Prosecutors will now need at least 10 years experience to work in the country’s National Anti-corruption Directorate, the anti-mafia bureau or the Public Prosecutor’s office." (Click here for the article) - EU, Romania

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

EU and Japan to Recognize the Other’s Persona Data Protection System | JDSupra - K&L Gates LLP

"On 17 July 2018, the EU and Japan reached an agreement to recognize each other’s data protections systems as “equivalent”, and each commits to complete internal procedures by fall 2018 (the “Data Agreement”). Once adopted, this will allow businesses to transfer personal data from the European Economic Area to Japan and vice versa without being required to provide further additional safeguards for each transfer." (Click here for the article) - EU, Japan

Chinese Intelligence Officer Charged with Economic Espionage | US DOJ

"A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies.  Xu was extradited to the United States yesterday." (Click here for the article) - USA, China

Cyber Tests Showed ‘Nearly All’ New Pentagon Weapons Vulnerable to Attack | NPR

"Passwords that took seconds to guess, or were never changed from their factory settings. Cyber vulnerabilities that were known, but never fixed. Those are two common problems plaguing some of the Department of Defense's newest weapons systems, according to the Government Accountability Office." (Click here for the article) - USA, China

Security firm uncovers new cyber group targeting government and military sectors | The Hill

"A new cyber group appears to have been targeting government and military organizations this past year as part of an espionage campaign, a security firm said on Wednesday." (Click here for the article) - Eastern Europe, Middle East

Oil Industry snubs EU effort to defy US sanctions on Iran | Financial Times

"Big European oil companies are spurning the EU’s attempt to shield Iranian crude from US sanctions because of fears the effort would leave businesses exposed to harsh penalties from the Trump administration." (Click here for the article) - Europe, Iran, USA

Mitigating Compliance Pitfalls in Manufacturing | Manufacturing.net

"The U.S. Department of Justice and the Securities and Exchange Commission have stepped up efforts recently to enforce the Foreign Corrupt Practices Act (FCPA). For manufacturers, this involves regulations surrounding exports and international conduct, including those related to U.S. economic sanctions and export control laws." (Click here for the article) - USA

French ports planning for ‘No-Deal’ Brexit | freightweek

"Norlink Ports, an association of 25 ports and inland gateways in the northern Hauts-de-France region, is planning measures to reduce the commercial impact of Britain leaving the European Union without a trade agreement." (Click here for the article) - UK, France, EU

Three Audit Employees Investigated in Probe of Vehicle Certifications | WSJ

"German prosecutors have launched an investigation into three employees of Volkswagen AG’s luxury car unit Audi suspected of falsifying documents to obtain roadworthiness certifications needed for vehicles to be exported to South Korea…" (Click here for the article) - Germany, South Korea

Countries Face Rising Exposure to Money Laundering | WSJ

"More countries are showing heightened risks of exposure to money laundering, according to an annual ranking of countries assessing their money-laundering risk." (Click here for the article) - Global

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

China Tariffs - List 3 Finalized and Taking Effect | Mitchell Silberberg & Knupp LLP

"At the end of the day on September 17, 2018, the U.S. Trade Representative issued notice that List 3 of the China tariffs has been finalized and takes effect with a 10% tariff on September 24, 2018." (Click here for the article) - USA, China

China eases up on winter smog fight as it battles American trade war headwinds  | SCMP

"China will be less severe with its smog curbs this winter as it grapples with slower economic growth and a trade war with the United States, according to a government plan released on Thursday." (Click here for the article) - USA, China

Ferraris, diamond rings: 3 men indicted in massive $364 million Ponzi scheme | USA Today

"Three men have been indicted in an alleged $364 million ponzi scheme that had more than 400 victims who funded their lavish lifestyle, featuring luxury cars, pricey homes and expensive jewelry, federal authorities said." (Click here for the article) - USA

Paris set to triumph as Europe’s post-Brexit trading hub | Financial Times

"Paris is emerging as the favored financial trading hub for continental Europe, as some of the world’s biggest banks and asset managers prepare for life after Brexit by steering their EU operations away from London to the French capital." (Click here for the article) - UK, France, European Union

US reaches trade deal with Canada and Mexico | Politico

"Trade ministers from the U.S., Mexico and Canada have reached a deal to revamp the North American Free Trade Agreement, the Trump administration announced late Sunday night." (Click here for the article) - USA, Mexico, Canada

Rules of Origin are too complicated | FOOD navigator

"Complex rules of origin labelling requirements inhibit trade and SMEs pay a particularly heavy price, trade bodies amfori and EuroCommerce warn. Speaking at a conference on rules of origin in Brussels, the heads of both associations argued that unless rules of origin requirements are reformed, they will continue to discourage European companies from taking advantage of ‘hard won concessions’ in free trade agreements." (Click here for the article) - European Union

North Korean hacking group tried to steal over $1Bn | FireEye

"This new FireEye report reveals a North Korean hacking group tried to steal over $1 billion from banks worldwide." (Click here for the article) - North Korea, Global

USMCA Provision Could Deter Trade Agreements with China | ST&R

"A provision in the updated NAFTA concluded this past weekend could make it more difficult for Canada and Mexico to pursue potential free trade agreements with China. Observers say the Trump administration could look to insert a similar provision in possible FTAs with the European Union and Japan as part of its effort to pressure Beijing to advance economic reforms." (Click here for the article) - USA, Mexico, Canada, China

Dubai enacts changes to anti-money laundering rules | The National

"The Dubai government has enacted changes to the Dubai International Financial Centre's anti-money laundering laws following a self-assessment of the free zone’s capacity to fight financial crime." (Click here for the article) - UAE

Hong Kong Freezes Chairman Assets, Alleges $1.3 Billion Con | Bloomberg

"Hong Kong’s securities regulator froze the assets of an unnamed chairman of a public company on suspicion of fraud totaling $1.3 billion. The person may have conducted two suspicious transactions to make significant profits, the Securities and Futures Commission said in a statement..." (Click here for the article) - Hong Kong, China