Category

Civil Monetary Penalties

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The US Treasury Department’s Office of Foreign Assets Control (“OFAC”), the US State Department (“State”), and the US Commerce Department (“Commerce”) issued rules adjusting maximum civil monetary penalties (“CMPs”) under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (“FCA”). OFAC CMP Adjustments Under OFAC’s final rule published on April 9, 2020, the adjusted penalties apply to CMPs that are assessed after April 9, 2020, as long as the violation occurred after November…

Maria Sergeyeva recently authored the blog post “Industry Groups Push Back on Commerce Department’s Proposed Supply Chain Regulations That Could Block or Restrict Tech Transactions” for Baker McKenzie’s Global Supply Chain Compliance blog.  The post highlights concerns expressed by many trade associations and businesses with the highly anticipated proposed regulations issued by the US Department of Commerce to implement Executive Order 13873, “Securing the Information and Communications Technology and Services Supply Chain.”  Executive Order 13873…

On November 26, 2019, the US Department of Commerce (“Commerce”) issued a highly anticipated proposed rule with proposed regulations (“Proposed Regulations”) to implement Executive Order 13873, “Securing the Information and Communications Technology and Services Supply Chain” (“Executive Order 13873“).

Executive Order 13873 gives the Secretary of Commerce (“Secretary”) sweeping, unprecedented authority to prevent or modify transactions involving information and communications technology and services (“ICTS”) originating in countries designated as “foreign adversaries” which pose an undue risk to critical infrastructure or the digital economy in the United States, or an unacceptable risk to US national security or the safety of United States persons.  All industries are potentially affected by the Proposed Regulations, whether directly or indirectly, which allow for case-by-case reviews of transactions at the Secretary’s discretion.  Any transaction that is ongoing as of, or was initiated on or after, May 15, 2019, can be reviewed and there is no mechanism by which a company may seek to clear transactions in advance.

A summary of the background and the Proposed Regulations is provided below:

The US Treasury Department’s Office of Foreign Assets Control (“OFAC”), the US State Department (“State”), and the US Commerce Department (“Commerce”) issued rules adjusting maximum civil monetary penalties (“CMPs”) under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (“FCA”).