Recent U.S. sanctions against an Iranian procurement network and drug traffickers in Mexico signal a trend within the Biden administration toward using sanctions to target “transnational organized crime,” Herbert Smith said in a June client alert. The firm suggested that companies should make sure their anti-money laundering and “know your customer” procedures are incorporated as “an integral part of sanctions compliance” due to the U.S.'s “increasing sanctions focus on transnational crime and money laundering.”

The Office of Foreign Assets Control will retire its public-facing file transfer protocol (FTP) server next year to comply with updated Treasury Department security policies, the agency announced last week. OFAC said it’s “aware” many people use the server, which will be retired June 10, 2024, to automate their sanctions list data downloads, and is maintaining it for one more year “to allow users sufficient time to develop automation that utilizes the list content hosted on the agency's website.” The agency said users should contact O_F_A_C@treasury.gov for “technical support related to this decision.”

Charlie Steele, former chief counsel at the Treasury Department's Office of Foreign Assets Control during 2019-2020, launched a solo law practice called the Law Office of Charles Steele, the attorney announced on LinkedIn. The firm's work will center on "U.S. economic sanctions matters, including counseling, compliance advice, license applications, enforcement matters, and delisting petitions," along with proceedings involving the Committee on Foreign Investment in the U.S. and national security. Steele added that he will continue his practice at Forensic Risk Alliance, where he has worked as a partner since 2020.

The Office of Foreign Assets Control this week revised 15 entries on its Specially Designated Nationals List. The entries have ties either to the U.S.-sanctioned National Iranian Tanker Company or the Islamic Republic of Iran Shipping Lines. OFAC didn’t release more information.

The Office of Foreign Assets Control this week sanctioned three people and one entity with ties to Mexico’s Cartel de Jalisco Nueva Generacion (CJNG), a sanctions arms trafficking organization. The designations target two senior CJNG members -- Alonso Guerrero Covarrubias and Javier Guerrero Covarrubias -- as well as Mary Cruz Rodriguez Aguirre, who directs a money laundering network on behalf of CJNG using currency exchange house Nacer Agencia Panamericana de Divisas y Centro Cambiario, S.A. de C.V.

Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.

The U.S. announced new sanctions this week against people and entities in China, Hong Kong and Iran for helping Iran procure “sensitive and critical parts and technology” for its ballistic missile programs. The “network” has also helped the Iranian government conduct financial transactions in support of its missile development efforts and aided the country’s Ministry of Defense and Armed Forces Logistics (MODAFL), as well as other affiliated procurement organizations, the Office of Foreign Assets Control said.

The Office of Foreign Assets Control published previously issued general licenses under its Belarus Sanctions Regulations in three separate notices. The full text of each license is available in the notices.

The Office of Foreign Assets Control this week sanctioned seven members of a “malign influence group” with ties to Russian government intelligence. The designations target Konstantin Prokopyevich Sapozhnikov, Yury Yuryevich Makolov, Gleb Maksimovich Khloponin, Svetlana Andreyevna Boyko, Aleksey Vyacheslavovich Losev, Vasily Viktorovich Gromovikov and Anna Travnikova, all of whom are involved in efforts to “destabilize” the Moldovan government. OFAC also sanctioned Perko Julleuchter, a workshop that produces ceramic lanterns, which is owned by Losev.

The Office of Foreign Assets Control published previously issued general licenses, a sectoral determination and a directive under its Russian Harmful Foreign Activities Sanctions Regulations. Each notice includes the full text of the licenses, determination and directive.