April 4, 2024
The Readbook is Kharon's weekly roundup of our published pieces, upcoming events, and the best-curated news feed on the intersection of international security and global commerce. Subscribe to the email version.
UPCOMING EVENTS
Attending the 2024 ACAMS The Assembly Hollywood Conference from April 8-10? Stop by booth #605 to speak to one of our experts, or schedule a meeting in advance here for a personalized demo of the Kharon platform.
THIS WEEK IN THE KHARON BRIEF
BIS Senior Enforcement Official Warns Export Industry of Risks, Consequences for Lack of Robust Compliance
A senior official at the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) gave a cautionary tale to companies in the export sector to start investing in their compliance programs early on rather than wait for an enforcement action to be taken against them to remediate. [Read More]
Lawmakers Call on the Pentagon to Include Biotech Firms in Its List of Chinese Military Companies
The U.S. House Select Committee on China is urging the Department of Defense to add seven Chinese biotech firms to its list of Chinese military companies. In a March 29 letter, the lawmakers stated that “urgent action is needed" to identify the companies that are helping advance the Chinese military. [Read More]
MEDIA ROUNDUP
SANCTIONS
The U.S. Department of the Treasury sanctioned a company and 13 vessels managed by it for facilitating the shipment of Iranian commodities on behalf of Iran’s Armed Forces General Staff and Ministry of Defense and Armed Forces Logistics. [U.S. Treasury]
France will propose EU-wide level sanctions on those behind spreading disinformation amid what Paris sees as growing efforts by Russia to destabilize the bloc. [Reuters]
Three tankers hauling Russian Sokol oil cargoes are anchored near Indian ports, indicating trade of the crude grade is returning despite complications caused by tougher U.S. sanctions. [Bloomberg]
Russian middlemen have relied on a form of cryptocurrency to avoid U.S. sanctions and procure parts for drones and other high-tech equipment. [WSJ]
An investment firm founded by Russian billionaires with ties to Vladimir Putin has financed lawsuits around the world, in some cases working with the company’s directors, clients, and Russian banks in an effort to evade international sanctions. [Bloomberg Law]
A veto by Russia ended the U.N.’s monitoring of sanctions against North Korea over its nuclear weapons and ballistic missile programs, dissolving a U.N. body that for 14 years was responsible for keeping a close eye on Pyongyang’s illicit activities. [WaPo]
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South Korea sanctioned two Russian ships linked to North Korea’s arms trade with Moscow, as well as Russian individuals and companies allegedly involved in Pyongyang’s deployment of overseas information technology workers. [NK News]
As the threat of secondary sanctions deters Chinese banks from facilitating trade with Russia, companies are flocking to the one Russian bank with a Chinese branch and facing up to six months of delays. [Reuters]
The U.S. Biden administration is considering ways to impose new limits on oil sales by the government of President Nicolás Maduro without increasing the number of Venezuelan migrants, raising U.S. gas prices, or angering other Latin American governments. [WSJ]
The U.S. said it would consider revoking its recent designation of Yemen’s Houthis as terrorists if the Iran-backed militants cease their shipping attacks in and around the Red Sea. [Bloomberg]
COMPLIANCE + ENFORCEMENT
A cargo ship leaving Russia that made an unscheduled stop at the German port of Rostock is under investigation there for carrying cargo in possible breach of sanctions. [Reuters]
The U.S. Bureau of Industry and Security updated its guidance and best practices for freight forwarders and exporters who use freight forwarders to help them ensure compliance with U.S. export controls and regulatory requirements. [U.S. BIS]
A Latvian citizen was charged with crimes related to a years-long conspiracy to sell sophisticated avionics equipment to Russian companies, in violation of U.S. export laws. [U.S. Justice]
U.S. lawmakers are intensifying efforts to prohibit funds from investing in Chinese companies, in an effort to address the strategic, commercial, and national security risks Beijing poses to the U.S. economy and financial markets. [FT]
The U.S. established direct cooperation with Cypriot law enforcement entities to enhance capacity in identifying and prosecuting financial crimes. [U.S. State]
EXPORT CONTROLS + SUPPLY CHAIN
The U.S. is asking American companies to stop shipping goods to more than 600 foreign parties over fears the items could be diverted to Russia for use in its invasion of Ukraine. [Reuters]
The U.S. is asking South Korea to adopt restrictions on semiconductor technology exports to China similar to those Washington has already implemented, another sign the Biden administration is stepping up efforts to thwart Beijing’s chip ambitions. [Bloomberg]
Chinese tech giant Huawei claimed its net profit more than doubled last year, marking a stunning comeback for the company years after U.S. export controls cut it off from advanced technology. [WSJ]
The U.S. is drawing up a list of advanced Chinese chipmaking factories barred from receiving key tools to make it easier for companies to stem technology flows into China. [Reuters]
The U.K. updated its strategic export control list to include new control entries and amendments to the dual-use and munitions list. [U.K. Government]
HUMAN RIGHTS + FORCED LABOR
The U.S. said it will impose new visa restrictions on a number of Hong Kong officials over the crackdown on rights and freedoms in the Chinese-ruled territory. [Reuters]
CRYPTO + CYBER
China has adopted some of the same misinformation tactics that Russia used in an effort to influence the 2016 U.S. election, researchers and government officials say. [NYT]
The U.S. and U.K. are reviewing more than USD 20 billion of cryptocurrency transactions that passed through a Russia-based virtual exchange, as part of allied efforts to crack down on the sanctions evasion that’s supporting the war in Ukraine. [Bloomberg]
Israel’s National Bureau for Counter Terror Financing issued an Administrative Seizure Order in which it listed 42 cryptoasset accounts that are linked to terrorism. [Elliptic]