Effective April 24, the statute of limitations (“SoL”) under the International Emergency Economic Powers Act (“IEEPA”) and the Trading with the Enemy Act (“TWEA”) has been extended from five to ten years. It would have been easy to miss this change, buried within a supplemental emergency appropriation bill (H.R. 815) signed into law by President Biden on April 24, 2024, but its impacts will be profound for entities facing internal or government investigations for sanctions violations. The change affects economic sanctions programs managed by the U.S. Department of Treasury, Office of Fore ..read more

Key Takeaways: The Treasury Department is seeking to equip CFIUS with greater enforcement and oversight authority. These new powers include the ability to request more information from transaction parties and also to assess more significant penalties—in some cases, potentially greater than the transaction value—against companies who fail to comply with mandatory filing requirements or violate mitigation agreements. These proposed changes demonstrate an increasing willingness by CFIUS to aggressively enforce its authority over transactions impacting U.S. national security. Transaction part ..read more

On March 29, 2024, BIS issued an interim final rule (IFR) updating and correcting its advanced computing and semiconductor regulations[1] published in October 2023 (which we discuss here in Episode III). This marks the third release of such semiconductor-related regulations since the key regulations were issued in October 2022 (which we discuss here in Episode I; and check out these posts here (Episode II) and here (Episode IV) for background). This IFR is now in effect since April 4, 2024. Interested parties may comment for revisions, corrections, and clarifications no later than April 29, 20 ..read more

The EU is going extraterritorial, and it is doing so through private contract. It is a pretty neat trick. As a general rule, EU regulations do not apply extraterritorially. This policy is a bit pointed, intended to stand in sharp contradistinction to the U.S. sanctions regulations that are enforced around the world (and for which the EU has issued certain blocking statutes, as it did in the case of U.S. sanctions on Cuba). However, the new “No Russia” Clause the EU recently imposed is giving EU restrictions on Russia a much longer arm. The ‘No Russia’ Clause: A New Dimension in EU Restrictive ..read more

On February 29, 2024, the Biden administration issued a statement addressing the national security risks to the U.S. auto industry directing the Department of Commerce to conduct an investigation into Chinese made “connected vehicles” (CVs). Pursuant to Executive Order (E.O.) 13873, the Commerce Department’s Bureau of Industry and Security (BIS) issued an advance notice of proposed rulemaking (ANPRM) seeking public comments related to transactions involving information and communications technology and services (ICTS) that are integral to CVs from China and other foreign adversaries. The scrut ..read more

On Wednesday, March 6, 2024, the Department of Commerce, Department of the Treasury and Department of Justice issued another Tri-seal Compliance Note, focusing this time on the obligations of foreign based persons complying with U.S. sanctions and export control laws as well as recent enforcement actions. This may signal more scrutiny on the compliance of foreign companies which we have discussed here. While understanding how sanctions and export control laws impact U.S. companies is straightforward (or not!), how these laws affect non-U.S. persons and entities is often more confusing. The Not ..read more

The EU plans to step up controls on its home grown technology. That is the short version. The longer version is a (pretty dry) recitation of the proposed legislation and whitepapers that were published last week as the European Economic Security Package (ESP). We provide that (really dry . . . sorry) summary below, but hit the highlights and interesting points here. At the start. Because, in this blog (as in life) we’re here for a good time, not a long time. The Five, Real Fast The new ESP comprises plans for the EU to undertake the following: 1. Foreign Direct Investment Screening – Patrollin ..read more

Grants and tax credits, who doesn’t love them? The Bipartisan Infrastructure Law (BIL) is full of them, and, recent Department of Energy (DOE) Notification of a Proposed Interpretive Rule provides guidance on who will get to benefit from those grants and tax credits. The BIL is a historic investment in U.S. infrastructure, the breadth of which is beyond the scope of this blog. However, thankfully, the DOE Proposed Rule focuses on batteries. So we will touch on aspects of the BIL, but zoom in on the DOE Proposed Rule and how it impacts the battery industry and the electric vehicle (EV) industry ..read more

On December 22, 2023, President Biden signed a new Executive Order (E.O. 14114) containing the latest round of sanctions against the Russian Federation. Shortly thereafter, Treasury Secretary Janet Yellen stated that the Office of Foreign Assets Control (OFAC) will take “decisive” and “surgical” action when enforcing sanctions against financial institutions involved in transactions that support Russia’s military-industrial base. Under the new sanctions, non-U.S. financial institutions may be denied access to U.S. correspondent accounts or payable-through accounts, effectively denying access to ..read more

Export controls are the manifestation of foreign, economic, and national security policy, and the implementation of policy requires dynamic adjustment, a back-and-forth, a balance. So, on December 7, 2023[1], amid the tightening of new semiconductor regulations, BIS announced it was relaxing regulations around another set of exports. This drawing back of the controls arrives in the form of a set of three rules easing license requirements and expanding license exceptions. While seemingly disparate, each of the three areas of amendments represents a consistent push to align U.S. export policy wi ..read more