Cross-Border Compliance Update

Cross-Border Compliance Update: November 2019

December 10, 2019

Foley Hoag’s Trade Sanctions & Export Controls Practice offers experienced, proactive regulatory advice to help clients avoid regulatory compliance missteps and to prevail in official proceedings. For more information about global compliance, visit the Foley Hoag Trade Sanctions & Export Controls Practice Group.

Included in this Issue:

  • Alert for Information and Communications Technology and Services Industries: Proposed New Rule Implements Unprecedented Regime to Review and Restrict Transactions
  • Temporary License Extension for Huawei; DOC Grants First Huawei Export Licenses
  • Foreign Executive Found Guilty of FCPA Violations Based on Evidence That He Acted as Agent of U.S. Subsidiary in Carrying Out Bribery Scheme
  • CFIUS Annual Report to Congress Released
  • Two New Laws Impose Sanctions on China: “The Hong Kong Human Rights and Democracy Act of 2019” and “An Act to Prohibit the Commercial Export of Covered Munitions Items to The Hong Kong Police Force”
  • Enhanced Due Diligence for Humanitarian Trade with Iran
  • DOJ Issues Clarifications to FCPA Corporate Enforcement Policy
  • New Amendments to Venezuela Sanctions Regulations
  • Restrictions on U.S. Air Service to Cuban Airports

Excerpt:

Alert for Information and Communications Technology and Services Industries: Proposed New Rule Implements Unprecedented Regime to Review and Restrict Transactions

The Department of Commerce (DOC) is accepting comments from now through December 27, 2019 on a proposed rule (the “Rule”) that would restrict certain foreign-involved transactions, including investment and services contracts, in the information and communications technology and services (ICTS) industries. The Rule as proposed has a very broad scope, and would impact telecommunications service providers, internet and digital service providers, and vendors and manufacturers of ICTS. The long-anticipated Rule would implement the May 15, 2019 Executive Order 13873, ‘‘Securing the Information and Communications Technology and Services Supply Chain.” This EO, while it does not name any particular entities or countries, is widely regarded as targeting China, and particularly Chinese companies such as Huawei, for the risks their presence in the global ICTS supply chain may pose to U.S. national security.

Download the November 2019 Foley Hoag Cross-Border Compliance Update (pdf).