December 28, 2023

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.

THIS WEEK ON THE KHARON BRIEF

U.S. Sanctions Hamas Representatives Released in 2011 Prisoner Exchange Deal

Hamas operatives who were released as part of the 2011 Gilad Shalit prisoner exchange with Israel are still involved in plotting terrorist activities, running Hamas businesses, and operating cultural organizations used as cover for their operations. [Read More]

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MEDIA ROUNDUP

SANCTIONS        

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated one individual and three entities responsible for facilitating the flow of Iranian financial assistance to Houthi forces and their destabilizing activities. [U.S. Treasury]

South Korea imposed sanctions on eight North Koreans linked to nuclear and missile development through arms trade, cyberattacks, and other illicit activities. [Reuters]

The Chinese government sanctioned Kharon on December 26 for its research work related to forced labor and human rights abuses in Xinjiang. Kharon has no presence in China and as a result the action is largely symbolic and will not impact its operations or ability to service its clients. [Kharon]

Ahead of Taiwanese elections next month, the Chinese government on Wednesday threatened to place further trade sanctions on Taiwan if the ruling party "stubbornly" adheres to supporting independence. [Reuters] 

Taiwan's economy ministry said on Tuesday it had expanded a list of sanctioned goods for Russia and its ally Belarus in response to Russia's invasion of Ukraine to prevent Taiwanese high-tech goods from being used for military purposes. [Reuters] 

The Biden administration issued a new Executive Order further targeting Russian sanctions evasion, making clear to foreign financial institutions that facilitating significant transactions relating to Russia’s military-industrial base may expose them to U.S. sanctions. [U.S. Treasury]  

The U.K.'s OFSI amended its Russia Regulations to prohibit U.K. banks from processing payments previously processed by banks designated under regulation 17A or which are intended for a bank designated under regulation 17A. [U.K. Government]

Russia’s biggest liquefied natural gas producer began production at its Arctic LNG 2 project — despite U.S. sanctions — in a move that could provide some relief to the tight global market for the fuel. [Bloomberg]

Bank of Russia Governor Elvira Nabiullina, who helped the Kremlin absorb the blow from sweeping sanctions over the invasion of Ukraine, said she’s preparing for a strengthening of penalties aimed at the country’s economy. [Bloomberg]

COMPLIANCE + ENFORCEMENT        

The U.S. Department of the Treasury’s FinCEN issued a final rule that establishes the framework for access to and protection of beneficial ownership information. [FinCEN]

The U.S. Department of the Treasury announced a USD 466,200 settlement with a New York insurance company for 39 apparent violations of sanctions regulations related to Ukraine and Russia. [U.S. Treasury]

French prosecutors have opened an investigation into alleged "aggravated money laundering" related to transfers made by a Cypriot brokerage firm that worked with the custodian unit of an international bank. [Reuters]

Singapore authorities have charged two businessmen for their alleged role in smuggling fuel into North Korea, including one wanted by the FBI with a USD 5 million bounty. [NK News]

EXPORT CONTROLS + SUPPLY CHAIN        

The U.S. Customs and Border Protection will now require importers to provide self-certification that fish, seafood, and seafood-containing products imported into the U.S. do not contain any inputs originating from the Russian Federation. [U.S. CBP]

The U.S. Department of Commerce said it will launch a survey of the U.S. semiconductor supply chain and national defense industrial base to address national security concerns from Chinese-sourced chips. [Reuters]

China’s imports of critical chip-making lithography systems from the Netherlands surged tenfold in November, in a sign that domestic semiconductor firms are not yet cut off from receiving orders on certain advanced equipment in the wake of tightened U.S. export rules. [SCMP]

In the wake of Western sanctions, Huawei has pivoted toward emerging markets, including within Central Asia. [Diplomat] 

South Korea will tighten export controls against Russia and Belarus by significantly expanding its list of items subject to export restrictions, including excavators, batteries, and larger vehicles, in response to Moscow's invasion of Ukraine. [Yonhap News Agency]

A dormant North Korean port near the border with Russia has sprung back to life, fueling what experts say is a burgeoning trade in arms destined for the frontlines in Ukraine that is simultaneously bolstering the anemic economy managed by Kim Jong Un. [Bloomberg]

CRYPTO        

The Biden administration is doing more to counter North Korean hackers amid concerns that their cryptocurrency heists are powering the country’s weapons programs. [Politico]