Episode 266 — Joint Compliance Notice Issued on Sanctions and Export Controls Evasion
As we have noted on numerous occasions, the U.S. Russia Sanctions and Export Control Program is unprecedented and a compliance challenge for all organizations. In another unprecedented action, the Justice Department and the Departments of Commerce and Treasury issued a Joint Compliance Note (“JCN”) on the importance of compliance with the Russia Sanctions and Export Control requirement, which provides important descriptions of red flags and tactics used by organizations and individuals to evade applicable sanctions and export controls. In doing, DOJ, the Office of Foreign Asset Control (“OFAC”) and the Bureau of Industry and Security (“BIS”) have provided important guidance on government expectations and alerts to common scenarios that pose high-risk activities.
All compliance and trade compliance professionals should review the JCN since it sets out important and instructive information needed to ensure compliance. The key focal point, according to the JCN, is the use of third-party intermediaries and transshipment points that can be used to evade Russian and Belarusian sanctions and export controls. This is the first collective compliance guidance issued by the Justice Department and the Departments of Treasury and Commerce.
In this Episode, Michael Volkov discusses the Joint Compliance Notice.