What to look out for in the coming months
US jurisdiction on export controls, economic sanction laws and regulations are broad. It covers US origin items, foreign-made items with some US origin content, US dollars, and more. And US firms can enforce actions, even for activities outside of the US, warns Megan Gajewski Barnhill, partner at law firm Bryan Cave.
With changes ongoing, such as President Trump’s recent sanctions against Iran, North Korea and Russia, the business risks are high. Sanctions mean being “cut off from US markets and prevented from conducting business activities in the US or with US persons or entities”, she says.
The penalties for non-compliance are severe, and the government is not shy of enforcing them. Follow these tips to manage your risk.
• Know how your goods, software and technology are classified, including items procured from third parties, made outside the US but with US-origin content. Track and share the information internally.
• Gather details on potential transactions to spot any triggers under US export controls or economic sanctions. Be aware of any US involvement, including from financial institutions, or dollar transactions.
• Identify any US employees and ensure they are aware of restrictions applying to their activities under US export controls and economic sanctions.
• Screen customers, suppliers, and other parties for transactions against US restricted parties lists.
• Be aware of secondary sanction triggers and assess potential transactions for secondary sanctions risks.