A new lawsuit filed by Ukrainian civilians in U.S. courts illustrates a growing and often misunderstood risk for U.S. technology companies: you can face severe legal and reputational consequences even when you believe you’ve done everything right. In this case, plaintiffs allege that U.S.-made microchips were diverted, without the manufacturers’ knowledge, to the Russian military …
Client Challenge Following the 2014 U.S. embargo on Crimea, multinational companies faced the risk of violating sanctions due to resellers using sophisticated methods to hide their activities. Automated compliance systems often failed to detect these tactics, resulting in potential fines and reputational damage. The FiveBy Solution FiveBy, a risk intelligence firm, has utilized its human-driven …
Companies operating in the maritime, shipping, and oil trade sectors must conduct thorough due diligence to ensure compliance with the EU’s 16th package of economic sanctions related to Russia’s invasion of Ukraine, especially in light of the newly introduced criterion potentially targeting entities that facilitate the activities of unsafe oil tankers. With the EU’s expanded …
In December 2024, Russian cybersecurity giant Kaspersky Lab completed its exit from the US market after being banned the from doing business in the United States by the Bureau of Industry and Security. Regulators notified Kaspersky in June 2024 that it needed to exit the US market by December 2024 due to the national security …
Introduction The Federal Trade Commission’s (FTC) new “Click-to-Cancel” rule officially went into effect on January 14, 2025 and gives businesses until May 14, 2025 to ensure full compliance. Finalized on October 16, 2024, the rule aims to simplify the cancellation process for consumers who want to terminate recurring subscriptions like streaming services, pet insurance, gym …
Summary Companies engaged in Syria’s post-Assad reconstruction efforts have significant opportunities in key sectors such as infrastructure, energy, and telecommunications. For businesses investing in Syria’s recovery, understanding and navigating the complicated maze of sanctions compliance is essential to avoiding financial and reputational risks. Understanding Syria’s Emerging Market As Syria’s political landscape shifts, potential investors …
Summary On November 26, the U.S. Fifth Circuit Court of Appeals issued a partial ruling that Tornado Cash’s immutable smart contracts cannot be considered “property,” and are therefore not subject to the sanctions issued by the Office of Foreign Assets Control (OFAC). This decision could become a turning point for crypto compliance, highlighting the ongoing …
Executive Summary The aviation industry is facing heightened risks in the wake of escalating international sanctions and export controls. A stark example of this is Russia’s recent seizure of aircraft owned by Western companies. To mitigate the risk of losing aircraft and other assets, civil aviation lessors and insurers must identify jurisdictions where asset recovery …
Executive Summary The new proposed export controls from the US Department of Commerce’s Bureau of Industry and Security would require deeper due diligence research to ensure products do not end up in the hands of militaries or governments adversarial to the United States. The proposed export controls expansion and categorization will impact a wider range …
As part of its 14th package of sanctions, following deliberations with the G7, the European Council sanctioned the System for Transfer of Financial Messages (SPFS). The sanctions prohibit EU entities from connecting to this system or any similar financial messaging service developed by Russia’s Central Bank, barring European Union (EU) operators from conducting transactions with …
