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April 2010 www.marinelink.com 23 to such exportations to Sudan and Iran) and issued a new definition of the means of “payment of cash in advance” applica- ble to certain shipments of authorized agricultural exports to Cuba delivered during fiscal year 2010 or timely deliv- ered pursuant to contracts entered into in fiscal year 2010. Apart from these rela- tively minor modifications, however, bar- riers faced by U.S. companies wishing to do business with Cuba remain un- changed, although Congressional efforts to ease or remove the sanctions continue.

Recent Enforcement Actions

November 11, 2009 saw publication of

OFAC’s long awaited final enforcement guidelines, designed to allow greater in- sight into the manner in which OFAC de- termines an appropriate enforcement response to apparent violations of U.S. economic sanctions. In December, the announcement of the imposition of sub- stantial penalties against Lloyds TSB

Bank, plc and Credit Suisse made clear to an already skittish U.S. banking com- munity the pitfalls of violating the ban on processing U.S. dollar transactions for

SDNs and other sanctioned parties.

The U.S. Department of Commerce’s

Bureau of Industry and Security (“BIS”) and OFAC also continued their focus on the transportation and transportation services industry, imposing significant criminal and civil penalties and denial of export privileges against two companies involved in unauthorized exports of air- craft and aircraft parts to Iran in violation of both OFAC sanctions and the Export

Administration Regulations. BIS also is- sued new guidance for freight forwarders, reminding them of the important role they play in ensuring the security of the global supply chain. * This article reflects developments through March 16, 2010, the date of submission for publication. The views expressed herein are those of the authors, do not necessarily reflect the opinion of the firm or other members of the firm, and should not be construed as legal advice or opinion or a substitute for the advice of counsel. Please contact Barbara Linney ([email protected]) at (202) 772-5935 if you have questions or desire assistance.

About the Authors

Barbara D. Linney

Blank Rome LLP, Partner

[email protected]

Barbara Linney is a partner in the

Washington D.C. office of Blank Rome

LLP, practicing in the area of interna- tional trade and transactions. She regu- larly advises both U.S. and foreign clients regarding U.S. export controls and international economic sanctions, defense trade and security regulations, anti-bribery and anti-boycott regula- tions, and other international trade and business issues, including foreign in- vestment review, mergers, acquisitions and financings.

Kelly Loughery

[email protected]

Kelly Loughery is an associate in the

Washington D.C. office of Blank Rome

LLP. She concentrates her practice on export controls, economic sanctions, government contracts, and defense se- curity matters.

Kevin J. Miller

[email protected]

Kevin Miller is a Trade Specialist based in the D.C. office of Blank Rome

LLP.