Office Of Foreign Assets Control

  • Iran Continues to Dominate U.S. Sanctions headlines

    Since last year’s update appeared in the May 2012 issue of Maritime Reporter & Engineering News, Iran has continued to dominate U.S. sanctions headlines.  Significant actions by both the U.S. Congress and Department of the Treasury’s Office of Foreign Assets Control (OFAC) over the past year have increased sanctions against Iran substantially, and further initiatives are pending.  Our 2013 update concentrates on these key developments, with particular focus on Iran sanctions of interest to the maritime community.
    The most sweeping legislative development during the past year was the August 10, 2012 enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012 (the ITRA), which included amendments to the Iran Sanctions Act of 1996 (the ISA), the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA), and the National Defense Authorization Act For Fiscal Year 2012 (the NDAA 2012). 
    The ITRA  expanded the categories of activities sanctionable under the ISA to include:
    participation in certain petroleum joint ventures;
    provision of goods, services, technology or support that could directly and significantly contribute to the maintenance or enhancement of Iran’s ability to develop domestic petroleum resources or its domestic production of petrochemical products;
    ownership, operation, control or insurance of a vessel used to transport crude oil from Iran to another country;
    concealing the Iranian origin of crude oil or refined petroleum products;
    export, transfer or facilitation of transshipment of goods, services or technology to Iran, directly or indirectly, that would contribute materially to Iran’s WMD and conventional military capabilities; and
    participation in certain joint ventures relating to the mining, production or transportation of uranium.

    Several of these provisions, together with a broader definition of the term “services” used throughout the ISA, have a significant impact on the maritime industry.  In March of this year, the U.S. Department of State acted to impose sanctions against a Greek national and shipping company for concealing the Iranian origin of crude oil – one of the new heads of sanctionable activity.  At the same time, two insurance companies were sanctioned under the ISA for providing insurance or reinsurance to the National Iranian Tanker Company (NITC).
    Other provisions of the ITRA, including amendments to CISADA and the NDAA 2012, imposed additional sanctions targeting Iran’s petroleum, shipping, insurance and financial sectors. 
    In late 2012, Congress also included additional sanctions in the National Defense Authorization Act For Fiscal Year 2013 (the NDAA 2013).  Building on the ITRA, the NDAA 2013 requires imposition of additional sanctions with respect to the energy, shipping and shipbuilding sectors of Iran for conduct occurring on or after July 1 of 2013, as follows:
    subject to certain exceptions, including for transactions involving food, agricultural commodities, medicine, medical devices and humanitarian assistance, ISA sanctions are to be imposed against persons who knowingly sell, supply or transfer to or from Iran significant goods or services used in connection with the energy, shipping or shipbuilding sectors of Iran, including by companies such as the National Iranian Oil Company, the NITC, and the Islamic Republic of Iran Shipping Lines;
    subject to an exception for persons exercising appropriate due diligence, ISA sanctions are required to be imposed against persons who sell, supply or transfer, directly or indirectly, to or from Iran, precious metals or graphite, certain raw and semi-finished metals, and software for integrating industrial processes determined to be used by Iran, among other things, in connection with the energy, shipping, shipbuilding and certain other sectors of the economy of Iran; and
    subject to exceptions for transactions involving food, agricultural commodities, medicine, medical devices and humanitarian assistance and persons exercising due diligence, ISA sanctions also will be required against persons providing underwriting services or insurance or reinsurance for sanctioned persons and activities.
    In addition, the NDAA 2013 provides for sanctions against financial institutions that conduct or facilitate financial transactions related to sanctionable activities.  Other provisions of the NDAA 2013 designate port operators and entities in the energy, shipping, and shipbuilding sectors of Iran as entities of proliferation concern and require blocking of the assets of such entities and placing them off-limits to transactions with U.S. persons effective as of July 1, 2013.
    These Congressional initiatives led to the amendment and restatement of both the Iranian Financial Sanctions Regulations (IFSR) and the Iranian Transactions Regulations (now the Iranian Transactions and Sanctions Regulations, or ITSR).  The Administration also issued five Executive Orders targeting Iran in 2012.  Two of these targeted human rights abusers and foreign sanctions evaders,  respectively, while the other three primarily implemented new statutory provisions.  In addition, OFAC continued to add Iranian and Iranian-related parties to the Specially Designated Nationals and Blocked Persons List (SDN List) of individuals, entities, vessels and aircraft that are “off-limits” to U.S. persons.  As noted above, the U.S. Department of State also meted out additional sanctions under the ISA.  However, as a result of the removal of sanctions against three companies determined to have provided reliable assurances that they will not knowingly engage in sanctionable activity in the future, the list of persons remaining subject to ISA sanctions now stands at fifteen (fourteen companies and one individual).
    Challenges in the coming year will include reconciliation of the general licenses contained in the ITSR designed to facilitate agricultural, medical and humanitarian trade with the mandate under the NDAA 2013 to block the property of and prohibit transactions by U.S. persons with all Iranian port operators and entities in the shipping sector of Iran.  Implementation of the NDAA 2013 will substantially increase obstacles to delivery of and receipt of payment for legitimate trade with Iran by both U.S. and foreign companies unless Congress or the Administration take steps prior to the July 1 to ameliorate the impact of the new NDAA 2013 sanctions on such trade. While the primary target of the ITRA and the NDAA 2013 was foreign involvement in various significant sectors of Iran’s economy, two key provisions of ITRA – Sections 218 and 219 – and related provisions of the ITSR will have a significant impact on U.S. corporations whose subsidiaries engage in trade with Iran.
    First, foreign entities owned or controlled by U.S. persons now are prohibited from knowingly engaging in any transaction directly or indirectly with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited if the transaction were engaged in by a U.S. person or in the United States.  However, Section 218 of ITRA and Section 560.701 of the ITSR provide for imposition of penalties on the U.S. person who owns or controls the offending foreign entity, rather than against the foreign entity. 
    Section 219 of ITRA amended the Securities Exchange Act of 1934 to compel issuers required to file reports with the Securities and Exchange Commission (SEC) to disclose and provide detailed information regarding certain activities of the issuer or its affiliates that are sanctionable under the ISA or certain provisions of CISADA or involve blocked persons or the Government of Iran.  Such notices are to be transmitted to the President and certain congressional committees, and the President must undertake an investigation and determine within 180 days whether sanctions should be imposed under the ISA, CISADA, or any other applicable U.S. laws relating to sanctions with respect to Iran.  However, Guidance issued on December 4, 2012 by the SEC makes it clear that disclosure of lawful activities under OFAC general or specific licenses is not required.  These requirements will apply to both U.S. and foreign issuers, and will serve to draw the attention of investors and regulators alike to companies continuing to do business with Iran. More recently, OFAC has focused on Iran’s use of exchange houses and trading companies to evade sanctions against Iran.  Guidance issued on January 10 urges U.S. persons to exercise enhanced due diligence in connection with transactions with such exchange houses and trading companies, and two such entities were added to the SDN List on May 15.
    Eager to maintain the anti-proliferation momentum, Congress currently is considering proposed legislation that would, among other things, impose sanctions similar to those enacted under the NDAA 2012 against foreign persons who engage in certain financial transactions related to purchase of petroleum or petroleum products from Iran.  If passed, the proposed legislation would require sanctions to be imposed against foreign persons who engage in certain financial transactions related to the purchase, directly or indirectly, of any goods or services by or from a person in Iran, subject to exceptions for transactions related to sales of agricultural commodities, food, medicine and medical devices to Iran or involving countries that have significantly reduced their trade with Iran.
       
    Other Developments
    Over the past year, OFAC also took action on several other fronts, including imposing further sanctions against Syria and persons threatening the peace and stability of Yemen and making numerous additions to the SDN List under various sanctions programs, while gradually easing sanctions against Myanmar (Burma).  A comprehensive discussion of all recent changes in U.S. and international economic sanctions is beyond the scope of this article, but readers are cautioned to consider all potentially applicable sanctions laws and regulations before proceeding with international transactions.
     


    Barbara D. Linney is a member of the Washington, D.C. firm Miller & Chevalier Chartered, practicing in the area of international trade and transactions.
    e: Linney@milchev.com

    Kevin J. Miller
    is an International Trade Specialist at Miller & Chevalier.
    e: KMiller@milchev.com



    *This article reflects developments through May 15, 2013, 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 (BLinney@milchev.com) at (202) 626-5806 if you have questions or desire assistance.


    (As published in the June 2013 edition of Maritime Reporter & Engineering News - www.marinelink.com)

  • bank record keeping and reporting requirements and increased the penalty for currency smuggling and counterfeiting. The Treasury Department’s Office of Foreign Assets Control (OFAC) lists the names of sanctioned individuals, organizations and countries engaged in international narcotics trafficking, threats

  • the past 50 years.  Norman F. Laskay is currently Of Counsel with Dufour, Laskay & Strouse, Inc., a full service marine survey company with its head office in New Orleans, Louisiana. He is a graduate of Maine Maritime Academy, has sailed as a deck officer on U.S. and foreign flag freighters and worked

  • The U.S. Justice Department has eased its opposition to a bill in Congress that would ban gaming on foreign-flag cruises to nowhere and, for the first time, permit casinos on U.S.-flag cruise ships. Introduced by Representative Gene Taylor of Mississippi, the bill would annul the U.S. Gambling

  • The continued existence of the Merchant Marine Act of 1920 carries with it substantial economic and financial benefits. Its repeal could be catastrophic. The three-legged stool commonly referred to as the Jones Act is officially known as the Merchant Marine Act of 1920. For the purposes of national defense

  • A senior official from the U.S. Trade Representative's Office told the American Institute of Marine Underwriters that it has neglected its responsibility to help fight foreign restrictions on American marine cargo insurance. David Beebe, chairman of the institute representing 90 percent of the

  • and Oil and Gas sectors with the most advanced software to enhance the capabilities of their underwater sensors, vehicles and systems. The company has offices in Edinburgh, UK and San Diego, U.S. SeeByte has achieved a position of leadership in the development of smart software for remote or unmanned assets

  • Bollinger Shipyards, Inc., Lockport, La., signed a contract, pursuant to approval of the U.S. Bankruptcy Court, to acquire the assets and operations of Halter Marine from Friede Goldman Halter, Inc. If approved, Bollinger contemplates acquiring substantially all of Halter's operating assets, properties

  • excellence and ethics, the company also offers dimensional control surveys, laser scanning, 3D modeling and the iSite™ asset management software.  UTEC has offices located around the world including Australia, Brazil, Canada, Indonesia, Italy, Singapore, United Arab Emirates, United Kingdom and United States

  • , which require a wide range of services. To provide comprehensive support, the company operates a large, regionally organized, global network of offices and facilities. Fugro strives to achieve strong market positioning based on technologies that are mostly developed in house, high-value services and

  • Merchant Ships Owned by U.S. Parent Companies," which is for sale for $1.30 per copy from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The report lists foreign-flag merchant ships of 1,000 gross tons and over owned, either directly or through a foreign

  • With the potential threat to this valuable national asset, and the need for continuous review and practice of force protection, Blue Ridge's Commanding Officer, Capt. Andrew Sevald sent 10 of his officers to Naval Station San Diego, Calif, recently to take advantage of the Marine Safety International

  • MR Nov-19#96 MR NOV 2019_Index_revised2:Layout 1  11/7/2019  9:15 PM)
    November 2019 - Maritime Reporter and Engineering News page: 96

    MR NOV 2019_Index_revised2:Layout 1 11/7/2019 9:15 PM Page 1 ADVERTISER INDEX Page#Advertiser Website Phone #Page#Advertiser Website Phone # 55Advanced Mechanical Enterprises .www.amesolutions.com . . . . . . . . . . . . . . . . .(954) 764-2678 C3KE Marine / Worldwide Diesel . . . . .www.kemarine.com . .

  • MR Nov-19#94  Kits 
6DIHW\(TXLSPHQW
 
USA OFFICE  Ph: 832-203-7170
Coastal)
    November 2019 - Maritime Reporter and Engineering News page: 94

    and rust Supporting, Defending Subchapter M 2FHDQ0HGL[? Commercial Vessel 7KH6RXUFH)RU0HGLFDO(PHUJHQF\ Medical Kits 6DIHW\(TXLSPHQW USA OFFICE Ph: 832-203-7170 Coastal & Offshore 6LQFH www.rustibus.com houston@rustibus.com Configurations http://www.OceanMedix.com Available

  • MR Nov-19#83 ?
%RDW/,)(DGLYLVLRQRI/LIH,QGXVWULHV proud manufacturers of)
    November 2019 - Maritime Reporter and Engineering News page: 83

    ? %RDW/,)(DGLYLVLRQRI/LIH,QGXVWULHV proud manufacturers of boat sealants, cleaners, compounds, waxes and epoxies, is now celebrating 60 years in the marine industry. With a longstanding reputation for quality, affordability, and trust, we are pleased to serve various marine industries on an ongoing basis.

  • MR Nov-19#82 P
PRODUCTS HEAVY LIFT & DECK MACHINERY
Cimolai Technology)
    November 2019 - Maritime Reporter and Engineering News page: 82

    P PRODUCTS HEAVY LIFT & DECK MACHINERY Cimolai Technology Heavy Lift to Assist Shipbuilding Operations Images: Cimolai Technology imolai Technology Spa, the a span of 60 m and height of 60 m and Cimolai Technology Spa has been also lifting platform or used independently Italian company specialized

  • MR Nov-19#80 V
VESSELS PATROL CRAFT
Damen Patrol Vessels for Offshore)
    November 2019 - Maritime Reporter and Engineering News page: 80

    V VESSELS PATROL CRAFT Damen Patrol Vessels for Offshore Nigeria amen recently delivered a companies. Features of the 33m vessels four weeks and travel 1,200 nm in and ity and cost effectiveness to the bene? t pair of FCS 3307 high-spec include Damen’s trademark Axe Bow around Nigeria’s coastal and

  • MR Nov-19#77 M
MARITIME MEDICAL CREW CARE
 “Medical care has to be)
    November 2019 - Maritime Reporter and Engineering News page: 77

    M MARITIME MEDICAL CREW CARE “Medical care has to be managed by medical professional companies to ensure that cases are handled in the most ap- propriate way, crew members get highest quality of medical care at the most reasonable price. Additional requirements of GDPR put even additional pressure to

  • MR Nov-19#76 M
MARITIME MEDICAL CREW CARE
Crew Care: Managing Mariner)
    November 2019 - Maritime Reporter and Engineering News page: 76

    M MARITIME MEDICAL CREW CARE Crew Care: Managing Mariner Medical Care By Joe Keefe he competent authority shall as the population on shore enjoys. But, the embarking any mariner, a trusted 2012. There are several key aspects to require that, prior to begin- that’s not always the case. In case of

  • MR Nov-19#75 E
EMISSION REDUCTION TECH FILES
AMETEK Land Emissions)
    November 2019 - Maritime Reporter and Engineering News page: 75

    E EMISSION REDUCTION TECH FILES AMETEK Land Emissions Monitoring AMETEK Land, a provider of combus- tion ef? ciency and environmental pollutant emissions monitoring instrumentation, has launched two new continuous emission mon- itoring systems (PM-CEMS) to provide accu- rate and reliable measurement of

  • MR Nov-19#74 E
EMISSION REDUCTION TECH FILES
Schottel Propulsion for)
    November 2019 - Maritime Reporter and Engineering News page: 74

    E EMISSION REDUCTION TECH FILES Schottel Propulsion for Emission-Free Push Boat The agreement between Wärtsilä and Norsepower will pro- mote the use of Rotor Sails & support sustainable shipping. Wärtsilä, Norsepower Sign Agreement The technology group Wärtsilä and Norsepower, a provider of low maintenance

  • MR Nov-19#65 VOICES NICK BROWN, DIRECTOR OF MARINE AND OFFSHORE,)
    November 2019 - Maritime Reporter and Engineering News page: 65

    VOICES NICK BROWN, DIRECTOR OF MARINE AND OFFSHORE, LLOYD’S REGISTER what we believe will be prototype ves- LR research suggests that the cheap- as weather routing but these can only Digitalization has also enabled LR to sels, contracted and constructed in the est zero carbon fuels are going to be go

  • MR Nov-19#64 VOICES NICK BROWN, DIRECTOR OF MARINE AND OFFSHORE,)
    November 2019 - Maritime Reporter and Engineering News page: 64

    VOICES NICK BROWN, DIRECTOR OF MARINE AND OFFSHORE, LLOYD’S REGISTER 5 minutes with LR’s Nick Brown By Greg Trauthwein “LR research suggests that the cheap- est zero carbon fuels are going to be at least double the price of fuels today.” Nick Brown, Lloyd’s Register Photo: Lloyd’s Register To kick things

  • MR Nov-19#63 OFFSHORE WIND THE INSTALLATION FLEET
for installation)
    November 2019 - Maritime Reporter and Engineering News page: 63

    OFFSHORE WIND THE INSTALLATION FLEET for installation vessels. bon ? ber. There’s been a paradigm shift and ef? ciency, they are far ahead, but curve, Europe and globally.” But, while The prototype system was installed in in the largest players in the industry.” they’re a 120-year-old industry.

  • MR Nov-19#59 OFFSHORE WIND THE INSTALLATION FLEET
Brave Tern and Bold)
    November 2019 - Maritime Reporter and Engineering News page: 59

    OFFSHORE WIND THE INSTALLATION FLEET Brave Tern and Bold Tern in port of Esbjerg Source: Fred. Olsen Windcarrier watt (MW) turbines could be available tractors and there are questions over neck in handling these large turbines You really need big machines, bigger in the timeframe of those projects.

  • MR Nov-19#47 SHIPBUILDING USCG POLAR SECURITY CUTTER
vessel to reach)
    November 2019 - Maritime Reporter and Engineering News page: 47

    SHIPBUILDING USCG POLAR SECURITY CUTTER vessel to reach the North Pole unaccom- transits to get on station and conduct Mardiros. The number one mission for panied—but it is designed primarily for operations with limited or no logistics the new PSC will be to carry out the an- Meet The “Fleet” scienti?

  • MR Nov-19#37 WORKBOATS SOUTHERN TOWING COMPANY
“It’s health, it’s safety)
    November 2019 - Maritime Reporter and Engineering News page: 37

    WORKBOATS SOUTHERN TOWING COMPANY “It’s health, it’s safety, it’s security, it’s environmental, its quality and it’s training. That is our license to operate, and if we take care of those things ? rst, a lot of times everything else just falls into place. I like to say we are in a 5 mph business –

  • MR Nov-19#36 WORKBOATS SOUTHERN TOWING COMPANY
The Southern Towing)
    November 2019 - Maritime Reporter and Engineering News page: 36

    WORKBOATS SOUTHERN TOWING COMPANY The Southern Towing Company Pillars Every Southern Towing employee has a com- pany challenge coin (and the T-shirt!) embla- zoned with the company’s ‘pillars’. Ed Grimm describes what the pillars mean. • Success Through Commitment: “You have to be 100 percent; 100 percent

  • MR Nov-19#32 WORKBOATS THE OSV MARKET
DEMEREST TIDE: Tide-
water vessel)
    November 2019 - Maritime Reporter and Engineering News page: 32

    WORKBOATS THE OSV MARKET DEMEREST TIDE: Tide- water vessel now working Eastern Mediterranean Photos: Iain Cameron ering longer term sentiments. A reckon- Tidewater units are oper- to point to actual demand seeing dayrates just above $40,500, ing in an early September 2019 confer- ating, its slide deck

  • MR Nov-19#26 T
THOUGHT LEADERSHIP: OFFSHORE WIND
Equinor Invests in)
    November 2019 - Maritime Reporter and Engineering News page: 26

    T THOUGHT LEADERSHIP: OFFSHORE WIND Equinor Invests in Solar & Wind Energy in Brazil By Claudio Paschoa Scatec Solar and Equinor have ? rst major solar plant in Brazil in commercial operation. Equinor illustration of Hywind offshore wind farm in shallow waters off Scotland. Photo: Equinor ew technologi

  • MR Nov-19#24 T
THOUGHT LEADERSHIP: OFFSHORE WIND
“The US needs to)
    November 2019 - Maritime Reporter and Engineering News page: 24

    T THOUGHT LEADERSHIP: OFFSHORE WIND “The US needs to develop a work- force from scratch,” noting that a mas- sive campaign was undertaken in the UK, something that needs to start now in the United States. Laura Smith, USA Director for Atlas Professionals from renewable energy? NJ wants to de- to the

  • MR Nov-19#22 T
THOUGHT LEADERSHIP: OFFSHORE WIND
Public Of?  cials Face)
    November 2019 - Maritime Reporter and Engineering News page: 22

    T THOUGHT LEADERSHIP: OFFSHORE WIND Public Of? cials Face Detailed Decisions – needed sooner, not later… AOT is working to develop a new port, speci? cally con? gured to serve Atlantic Ocean wind projects, on 30 acres along the Arthur Kill tidal strait between Staten Island and New Jersey. Boone Davis

  • MR Nov-19#18 D
DESIGN: BACK TO THE DRAWING BOARD
-cally no longer so)
    November 2019 - Maritime Reporter and Engineering News page: 18

    D DESIGN: BACK TO THE DRAWING BOARD -cally no longer so dif? cult. sion pods in the 250 kW range (I would and a better engine room). seating to keep passengers safe in foil Foiling math is fun, and it is now well like to use four and she is a 1000 kW I would like her to be a bow loader collisions

  • MR Nov-19#16 D
DESIGN: BACK TO THE DRAWING BOARD
Rik van Hemmen is the)
    November 2019 - Maritime Reporter and Engineering News page: 16

    D DESIGN: BACK TO THE DRAWING BOARD Rik van Hemmen is the President of Martin & Ottaway, a marine consulting ? rm that specializes in the resolution of technical, operational and ? nancial issues in maritime. By training he is an Aerospace and Ocean engineer and has spent the majority of his career in

  • MR Nov-19#14 I
INSIGHTS: LEGAL BEAT
F. Daniel Knight
F. Daniel Knight)
    November 2019 - Maritime Reporter and Engineering News page: 14

    I INSIGHTS: LEGAL BEAT F. Daniel Knight F. Daniel Knight is a Shareholder at Chamberlain Hrdlicka in Houston, Texas, practicing Admiralty, Maritime, and Energy law, as well as commercial and civil litigation. Follow him on Twitter @MaritimeProctor Maritime Contracts 5 Common Mistakes ften clients or

  • MR Nov-19#12 I
INSIGHTS: GOVERNMENT UPDATE
Dennis L. Bryant 
Dennis)
    November 2019 - Maritime Reporter and Engineering News page: 12

    I INSIGHTS: GOVERNMENT UPDATE Dennis L. Bryant Dennis Bryant is with Bryant’s Maritime Consulting, and a regular contributor to Maritime Reporter & Engineering News as well as online at MaritimeLogisticsProfessional.com. dennis.l.bryant@gmail.com The Internet of Maritime Things he Internet of Maritime