ICYMI: Commerce, Treasury, and Justice Issue Compliance Note on Obligations of Foreign-Based Persons to Comply with U.S. Export Laws
On March 6, 2024, the Department of Commerce, Department of the Treasury, and Department of Justice issued a tri-seal compliance note titled: “Obligations of foreign-based persons to comply with U.S. sanctions and export control laws.”
The note:
- Highlights the applicability of U.S. sanctions and export control laws to persons and entities located abroad;
- Outlines the enforcement mechanisms that are available for the U.S. government to hold non-U.S. persons accountable for violations of such laws; and
- Provides an overview of compliance considerations for non-U.S. companies and compliance measures to help mitigate their risk
Applicability of U.S. Sanctions and Export Control Laws to Foreign-Based Persons
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions, primarily against foreign jurisdictions but also against individuals and entities such as traffickers and terrorists.
The following persons/entities must comply with OFAC regulations:
- U.S. citizens and permanent resident aliens
- All persons within the United States
- All U.S.-incorporated entities and their foreign branches
In certain sanctions programs, foreign entities owned or controlled by U.S. persons also must comply with applicable restrictions – such as engaging in a transaction with the government of Iran. Certain sanctions programs also require foreign persons in possession of U.S.-origin goods to comply.
Non-U.S. persons are also subject to certain OFAC prohibitions. For example, non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions.
Applicability of U.S. Export Control Laws
The compliance […]
