Pursuant 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.
Following 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.
The 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.
On 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.
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.
In July, the US delayed its decision on whether to lift its sanctions on Sudan for 3 months (see previous blog). President Trump is now expected lift the sanctions before a deadline of 12 October next week, following reports of a series of successful bilateral meetings between the two countries.
The sanctions were eased under the previous administration in recognition of Sudan’s improved cooperation with the US, including on counter-terrorism, improvements to humanitarian access, and the reduction in its military activity in conflict areas such as Darfur, but their full revocation was linked to Sudan’s continued progress on these issues (see previous blog). Since that time, Sudan is also reported to have agreed to cut its ties with North Korea.
President Trump is said to have delayed his decision for fear of appearing soft on a country widely accused of numerous human rights violations, and due to a lack of crucial Africa-related appointments in several US government departments. In a possible precursor to the sanctions being lifted, last week President Trump removed Sudan from the list of countries subject to a general ban on travel to the US (see previous blog).
At the end of last month, OFAC fined US insurance and financial services company AIG $148,698 for violating US sanctions on Cuba, Iran, and Sudan. OFAC said that although AIG’s compliance programme included recommendations for when to use exclusion clauses in its insurance policies where US sanctions were involved, the scope of most of those exclusion clauses was too narrow. As a result, AIG provided insurance coverage to parties that were engaging in shipments to or from Cuba, Iran, and Sudan, primarily under global insurance policies.
OFAC’s enforcement notice is here.
The US has extended the deadline for deciding whether to revoke its sanctions on Sudan for 3 months. They were due to expire on 12 July, if not prevented by the White House. The Obama Administration eased US sanctions on Sudan in January, in recognition of Sudan’s improved cooperation with the US including on counter-terrorism, improvements to humanitarian access, and the reduction in its military activity in conflict areas such as Darfur (see previous blog). The full lifting of the sanctions is contingent on Sudan continuing to address these areas, but the current administration decided that it needed more time to “ensure that, given the scope and gravity of this decision, we reached the proper outcome”.
Senior administration officials gave a press briefing on US sanctions on Sudan on Wednesday (link here).