FAQs

OFAC Issues Amended Venezuela-Related General Licenses and FAQ to Clarify Position on Exports/Reexports of Diluents to Venezuela

June 10, 2019 by Kerry B. Contini, Alexandre (Alex) Lamy and Meghan Hamilton

On June 6, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) amended three Venezuela-related general licenses (re-issued as General License No. 7B, General License No. 8A, and General License 13A) to clarify that these authorizations do not authorize US Persons to engage in transactions or dealings related to the exportation or reexportation of diluents, directly or indirectly, to Venezuela. Such general licenses (“GLs”) were originally issued concurrent with the designation of Petróleos de Venezuela SA (“PdVSA”) as a Specially Designated National (“SDN”) on January 28, 2019, under Executive Order 13850. Our original blog post regarding the designation of PdVSA is available here. Read more…

Kerry B. Contini

Ms. Contini focuses her practice on export controls, trade sanctions, and anti-boycott laws. This includes advising US and multinational companies on trade compliance programs, risk assessments, licensing, review of proposed transactions and enforcement matters. Ms. Contini works regularly with companies across a wide range of industries, including the pharmaceutical/medical device, oil and gas, and nuclear sectors.

http://www.bakermckenzie.com/KerryContini

Alexandre (Alex) Lamy

Alex advises clients on compliance with US export controls, trade and economic sanctions, and antiboycott controls. He counsels on and prepares filings to submit to the US Government’s Committee on Foreign Investment in the United States (CFIUS) with respect to the acquisition of US enterprises by non-US interests. Moreover, he advises US and non-US companies in the context of licensing, enforcement actions, internal investigations, compliance audits, mergers and acquisitions and other cross-border transactions, and the design, implementation, and administration of compliance programs.

http://www.bakermckenzie.com/en/people/l/lamy-alexandre

Meghan Hamilton

Meg's practice involves assisting multinational companies with export compliance related matters, specifically trade sanctions and export control classifications. Additionally, she assists companies with respect to customs laws, anti-boycott laws and other trade regulation issues in the US and abroad. She also helps obtain authorizations from the US government for activities subject to sanctions regulations and US export control regulations, including the Export Administration Regulations and the International Traffic in Arms Regulations. Meg's practice extends to assistance in internal compliance reviews as well as enforcement actions and disclosures necessitated by US government action.

http://www.bakermckenzie.com/en/people/h/hamilton-meghan

OFAC Designates Central Bank of Venezuela and Other Venezuelan and Nicaraguan Parties, Issues and Amends Venezuelan General Licenses, and Issues FAQ

April 22, 2019 by Nicholas F. Coward, Eunkyung Kim Shin and Meghan Hamilton

On April 17, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) continued its escalation of sanctions against Venezuela and Nicaragua through the designation of additional parties as Specially Designated Nationals (“SDNs”). OFAC issued two Venezuelan general licenses (“GLs”), amended certain Venezuelan GLs, and issued one FAQ, as further described below. A summary of OFAC’s measures is available here, and a related press release issued by the White House is available here.Read more…

Nicholas F. Coward

Mr. Coward focuses on outbound trade compliance matters, including the extraterritorial application of US law, particularly US export control laws, anti-boycott regulations and trade sanctions/embargoes maintained by the US government against various countries. In addition, his practice covers issues of corporate conduct such as the application of the Foreign Corrupt Practices Act and foreign bribery laws. He provides international transactional advice; assistance in the design and implementation of corporate compliance programs, compliance audits, and internal investigations; and representation in enforcement proceedings.

http://www.bakermckenzie.com/NickCoward

Eunkyung Kim Shin

Eunkyung advices clients on various regulatory compliance and trade issues, concentrating on the US export controls such as the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), economic and trade sanctions, US customs and import laws, the US Foreign Corrupt Practices Act (FCPA), and foreign anti-bribery laws.

http://www.bakermckenzie.com/EunkyungKimShin

Meghan Hamilton

http://www.bakermckenzie.com/en/people/h/hamilton-meghan

OFAC Expands Economic Sanctions on Venezuela through Additional Venezuela-Related Designations

March 27, 2019 by Kerry B. Contini, Eunkyung Kim Shin and Meghan Hamilton

The US Treasury Department’s Office of Foreign Assets Control (“OFAC”) continues to escalate the use of sanctions against the Maduro regime as well as entities that support the Maduro regime through the designation of high-profile parties as Specially Designated Nationals (“SDNs”). These designations increase the compliance risks for both US and non-US parties attempting to do business with Venezuela. Companies should watch out for additional designations under the Venezuelan sanctions, including possible designations of companies in the financial sector, gold sector, or other key sectors of the Venezuelan economy. Read more…

Kerry B. Contini

http://www.bakermckenzie.com/KerryContini

Eunkyung Kim Shin

http://www.bakermckenzie.com/EunkyungKimShin

Meghan Hamilton

http://www.bakermckenzie.com/en/people/h/hamilton-meghan

OFAC Extends Authorization for Transactions w/ PDVH and CITGO and Extends Wind Down of Contracts and Trades Involving Certain Bonds and Securities Until May 2019

March 20, 2019 by Bart M. McMillan, Lise S. Test and Daniel Andreeff

On March 14, 2019, OFAC reissued General License 7 (“GL 7”) as General License 7A (“GL 7A”) to extend the general license’s authorization for certain activities involving PDV Holding, Inc. (“PDVH”) and CITGO Holding, Inc. (“CITGO”). While the original GL 7(a) was set to expire on July 27, 2019, GL 7A(a) automatically renews on the first day of each month, and is valid for a period of 18 months from the last renewal date. GL 7A(a) authorizes certain transactions with PDVH, CITGO, and their subsidiaries that would otherwise be prohibited as a result of the designation of their parent, Petroleos de Venezuela, S.A. (“PdVSA”), on January 28, 2019 under Executive Order 13850. We note that the separate petroleum-related provision that appears in GL 7(b) has not changed, and still expires on April 28, 2019. GL 7A(b) continues to authorize PDVH, CITGO, and their subsidiaries to engage in transactions ordinarily incident and necessary to the purchase and importation of petroleum and petroleum products from PdVSA (and any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest). Our prior blog posts on the scope of GL 7 are here and here.Read more…

Bart M. McMillan

Mr. McMillan's practice involves compliance counseling; compliance programs; licensing; compliance reviews; internal investigations; voluntary disclosures; administrative enforcement actions; criminal investigations; customs inquiries, audits, detentions, and seizures; and trade-compliance due diligence and post-acquisition integration in mergers and acquisitions. His practice includes matters that implicate the US International Traffic in Arms Regulations (ITAR), US Export Administration Regulations (EAR), US National Industrial Security Program (NISP), the US Committee on Foreign Investment in the United States (CFIUS), and equivalent non-US laws. Mr. McMillan regularly advises on and represents clients in matters involving technology, including its control, protection, accidental disclosure, diversion, or unauthorized collection. Mr. McMillan has extensive experience working with companies in the aerospace and defense industry, as well as companies in the Middle East and other parts of Asia.

http://www.bakermckenzie.com/BartMcMillan

Lise S. Test

Ms. Test advices clients on issues relating to licensing, regulatory interpretations, enforcement actions, internal investigations and compliance audits, as well as the design, implementation and administration of compliance programs. She also advises clients on the extra-territorial application of trade compliance-related regulations in cross-border transactions.

http://www.bakermckenzie.com/LiseTest

Daniel Andreeff

Daniel Andreeff’s practice focuses on US economic and trade sanctions, including those targeting Iran, Russia, Cuba, Syria, and North Korea, export controls, and anti-boycott laws. He represents clients in national security reviews before the Committee on Foreign Investment in the United States (CFIUS), and has experience in federal court litigation and congressional investigations. His pro bono practice includes providing sanctions and export control advice to a global humanitarian NGO.

https://www.bakermckenzie.com/en/people/a/andreeff-daniel

Sanctions & Export Controls Update