The Office of Foreign Assets Control this week sanctioned seven people and 19 Mexican companies for their ties to a drug trafficking cartel, including Eduardo Pardo Espino, a fugitive of U.S. trafficking charges. OFAC said the people and companies have ties to a timeshare fraud led by the Cartel de Jalisco Nueva Generacion, which has been targeted by previous sanctions measures (see 2303020047, 2207110011|, [Ref:2206020077, 2110060017 and 2202180011).
The departments of Treasury and State this week sanctioned Russia’s Federal Security Service (FSB) and Iran’s Islamic Revolutionary Guard Corps Intelligence Organization, along with four of its senior officials, for their role in taking hostages and wrongfully detaining U.S. nationals. The sanctions are the first issued under the authority established last year by Executive Order 14078, which allows for sanctions against hostage-takers (see 2207190045).
New York lawyer Robert Wise pleaded guilty to participating in a scheme to make around $3.8 million in payments to maintain six real properties in the U.S. owned by sanctioned Russian oligarch Viktor Vekselberg. Wise pleaded guilty to one count of conspiring to commit international money laundering and faces a maximum of five years in prison, DOJ said April 25. He also forfeited more than $3.7 million and agreed "to be satisfied" by a $210,441 payment.
The Office of Foreign Assets Control issued a notice this week correcting several errors in its sanctions regulations. The changes correct a “typographical error” in the Iranian Transactions and two typographical errors in its Western Balkans Stabilization Regulations. OFAC also said the license incorporates one general license into the Western Balkans Stabilization Regulations. The changes take effect April 27.
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.
A British cigarette manufacturer agreed to pay American authorities more than $635 million to settle alleged sanctions violations after the U.S. said the company illegally sent tobacco and tobacco products to North Korea. British American Tobacco will pay about $508 million to the Treasury Department’s Office of Foreign Assets Control, the agency's largest fine in more than four years, and pay an additional fine as part of a deferred prosecution agreement with DOJ.
The U.S. this week sanctioned three people for supporting North Korea through “illicit financing and malicious cyber activity,” the Office of Foreign Assets Control said. Wu Huihui is a China-based based virtual currency trader who helps convert virtual currency stolen by North Korean “actors” working with the U.S.-sanctioned Lazarus Group (see 1909130039), and Cheng Hung Man is a Hong Kong based virtual currency trader who works with Wu to “remit payment to companies in exchange for virtual currency.” OFAC also sanctioned China-based Sim Hyon Sop for working for U.S.-sanctioned Korea Kwangson Banking Corp. (see 1907230027) and coordinating “millions of dollars in financial transfers” for North Korea.
The Office of Foreign Assets Control this week sanctioned four senior officials with the Law Enforcement Forces of Iran and the Islamic Revolutionary Guard Corps for their involvement in suppressing 2022 protests stemming from the arrest and death of Mahsa Jina Amini, who was accused of not correctly wearing a hijab. The designated officials are: Parviz Absalan, Amanollah Goshtasbi, Ahmed Khadem Seyedoshohada and Salman Adinehvand.
The Office of Foreign Assets Control this week sanctioned three Nicaraguan judicial officials involved in human rights abuses conducted by President Daniel Ortega regime. The designations target Ernesto Leonel Rodriguez Mejia, Nadia Camila Tardencilla Rodriguez and Octavio Ernesto Rothschuh Andino, who preside over courts that affirmed decisions that revoked the citizenship of more than 300 Nicaraguan citizens for opposing the government.
The Office of Foreign Assets Control April 19 again extended a general license that continues to delay an exemption that would authorize certain transactions related to Petroleos de Venezuela, S.A. General License 5K, which replaced GL 5J, now authorizes certain transactions with PdVSA involving an 8.5% bond on or after July 20. The agency also updated a frequently asked question to reflect the change. The previous license was set to allow those transactions to occur on or after April 20.