On June 8, 2016, the US Treasury Department’s Office of Foreign Assets Control (OFAC) updated its list of Frequently Asked Questions (FAQs) Relating to the Lifting of Certain US Sanctions Under the Joint Comprehensive Plan of Action (JCPOA). These updates build on OFAC’s existing JCPOA FAQs and further clarify the scope of sanctions relief that the US Government instituted on Implementation Day (January 16, 2016). For more information on Implementation Day, please see our blog post here. In particular, OFAC offered additional guidance related to the parameters for foreign entities that are owned or controlled by US persons and the lifting of certain financial and banking sanctions. This is the first time OFAC has provided public guidance about some of the issues described below (e.g., recusal policies, management issues for US parent companies), and such guidance is relevant in contexts beyond US sanctions targeting Iran.
On 3 June 2016, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) published a Final Rule (the “BIS Final Rule”) revising a number of definitions in the Export Administration Regulations (“EAR”). BIS also posted new Frequently Asked Questions related to this rule. Concurrently, the U.S. Department of State published an Interim Final Rule (the “State Interim Rule” and, collectively with the BIS Final Rule, the “June 2016 Rules”) revising several definitions in the International Traffic in Arms Regulations (“ITAR”). The June 2016 Rules will go into effect on 1 September 2016. The State Department will accept comments on the State Interim Rule until 5 July 2016.
On June 3, 2016, the US Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking proposing the imposition of additional restrictions on North Korean banks and other financial institutions. The notice follows the June 2, 2016 publication of a FinCEN finding that North Korea is a jurisdiction of primary money laundering concern under Section 311 of the USA PATRIOT Act, 31 U.S.C. 5318A.
On 23 May 2016, at a joint press conference with President Quang in Hanoi, President Obama announced the lifting of the US arms embargo against Vietnam, which had been in place in 1984. The US Department of State’s Directorate of Defense Trade Controls (DDTC) subsequently announced the end of its policy prohibiting the sale and transfer of lethal weapons to Vietnam.