Ericsson agrees $146k settlement with OFAC for violating Sudan sanctions

Ericsson.jpgEricsson Inc (located in Texas) and Ericsson AB (located in Sweden), both of which are subsidiaries of Telefonaktiebolaget LM Ericsson, have agreed to pay OFAC $145,893 to settle an allegation that they had violated the Sudanese Sanctions Regulations. The apparent violation had involved employees of Ericsson Inc and Ericsson AB conspiring together and with employees of a third-country telecommunications company to export and re-export a satellite hub from the US to Sudan, and to export and re-export satellite-related services from the US to Sudan.

OFAC determined that the companies had voluntarily self-disclosed the apparent violation, and that the apparent violation had constituted an egregious case. OFAC Enforcement Information here.

EU updates 3 entries on Sudan sanctions list

EU3.jpgOn 14 March 2018, the UN Security Council amended the entries of 3 people appearing under its Sudan sanctions list, namely: Musa Hilal Abdalla Alnsiem, Adam Yacub Sharif and Ibril Abdulkarim Ibrahim Mayu (previous blog here).

Today, the EU has implemented those changes by adopting Council Implementing Decision (CFSP) 2018/516 and Council Implementing Regulation (EU) 2018/512.

OFAC Quarterly Reports on Iran & Sudan TSRA licences

OFAC3Pursuant to section 906(b) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA), OFAC has published Quarterly Reports (covering October 2015 – December 2017) on the number of licence applications it processed requesting authorisation to export agricultural commodities, medicine and medical devices to Iran and Sudan.

Sudan pledges to sever ties with N Korea

Sudan1.jpgFollowing bilateral meetings in Khartoum with US Deputy Secretary of State Sullivan, the Sudanese Foreign Ministry has formally announced Sudan’s commitment to sever all trade and military ties with North Korea. Click here for the US Department of State press release.

 

EU updates entry on Sudan sanctions list

EU3The EU has adopted Council Implementing Decision (CFSP) 2017/1948 and Council Implementing Regulation (EU) 2017/1942, which updates the information relating to Mr Alnsiem on its Sudan sanctions list (see Annex I to Council Regulation (EU) No 747/2014). The UK Office of Financial Sanctions Implementation (OFSI) has published a Notice on the amendment.

US revokes Sudan sanctions

Sudan 1On 6 October, the US decided to revoke long-standing economic sanctions against Sudan, in recognition of its progress towards maintaining a cessation of hostilities in Sudanese conflict areas, improving humanitarian access throughout Sudan, and maintaining cooperation with the US on addressing regional conflicts and the threat of terrorism. Although not a condition for revoking the sanctions, the US also secured a commitment from Sudan not to pursue arms deals with North Korea. The revocation is set to take effect on 12 October 2017.

Sudan, however, will continue to remain on the US list of State Sponsors of Terrorism – alongside Iran and Syria – which carries, among other things, a ban on weapon sales and restrictions on US foreign assistance.

The US State Department has issued a press statement and a report with respect to this revocation of sanctions. OFAC has also published frequently asked questions, as well as a new general licence authorising certain transactions.

White Birch settlement with OFAC for violating Sudan sanctions

BD White Birch Investment LLC (White Birch USA), a company headquartered in Greenwich, Connecticut, has agreed to pay OFAC $372,465 to settle allegations that it violated the Sudanese Sanctions Regulations by having facilitated the sale and shipment of 543.952 metric tons of Canadian-origin paper from Canada to Sudan with a value of $354,602.26 in April and December 2013.

The enforcement action reinforces certain compliance obligations for US persons, including US parent corporations that maintain subsidiaries located outside of the United States, and their US person employees. For the full enforcement information, released on 5 October 2017, click here.