USA LAW AND PRACTICE Contributed by: Seward & Kissel LLP
1. Trends and Overview 1.1 Sanctions Market
violation of applicable Ukraine/Russia sanctions, and for failing to fully and timely respond to an OFAC sub- poena. OFAC highlighted by this action that gatekeep - ers – such as “investment professionals, accountants, attorneys, and providers of trust and corporate forma- tion services, among others” – must remain vigilant of sanctions risks posed by sanctioned parties or their proxies who may seek to use their services. OFAC also emphasised that it expects non-bank financial institu - tions, including venture capital firms and investment advisers, to develop and maintain effective risk-based sanctions compliance controls to counter sanctions risks in their industries. Second, the National Security Division (“NSD”) of the DOJ announced parallel resolutions coordinated with OFAC, and with the US Department of Commerce’s Bureau of Industry and Security (“BIS”) Office of Export Enforcement (“OEE”) of apparent violations of US sanctions and export control laws, with private equity firm White Deer Management LLC (“White Deer”) and its affiliates, after the firm discovered and voluntarily self-disclosed criminal violations of US sanctions and export laws committed by a company it had acquired, Texas-based Unicat Catalyst Technolo - gies LLC (“Unicat”). Most notably, the DOJ declined to prosecute the acquiring firm after White Deer and Unicat’s new management submitted a voluntary self-disclosure, ceasing the offensive conduct and co-operating with the government. This is the DOJ’s first reported declination under its March 2024 NSD Enforcement Policy for Business Organizations that applies to Voluntary Self-Disclosures in Connection with Acquisitions (the “NSD M&A Policy”). The OFAC release also highlights extensive remedial measures undertaken by White Deer and Unicat upon the new management’s discovery of the offensive conduct, with voluntary self-disclosure credit provided to Uni- cat, resulting in a 50% reduction of OFAC’s base civil penalty amount. 1.3 Key Industries The economic and trade sanctions programmes administered and enforced by OFAC are driven by US national security and foreign policy goals and objec- tives. In that respect, it bears noting that all individ - uals and entities subject to US jurisdiction, as well as foreign persons that conduct business in or with
The field of economic sanctions in the past several years has been characterised by dynamic and rapid growth and development, particularly with respect to the Russia and Iran sanctions programmes, among other countries, industries and policy initiatives, including legislation and regulations directed at China, Venezuela, the fintech/virtual currency, shipping and transportation industries, the area of cybersecurity, and a long-standing commitment to counter global human rights violations. Sanctions regulation and enforcement show no signs of abating as the US gov- ernment continues to employ these tools to address current national security and foreign policy priorities. 1.2 Key Trends In 2025, there has been a notable shift in political messaging and tone from the new US administration, together with certain adjustments in emphasis regard- ing US national security and foreign policy priorities. At the time of this publication, this has emphasised the imposition of “maximum pressure” on Iran, vig - orous strategic competition with China, which may include sanctions activity, and ongoing enforcement of traditional sanctions programs against Venezuela and other regimes. Sanctions regulations have eased against Syria, and, despite popular speculation to the contrary, have not eased against Russia. Overall, existing US sanctions laws and regulations continue to be implemented and vigorously enforced against both US and non-US persons and entities alike across the full range of its more than three dozen sanctions programs. The US Treasury Department’s Office of Foreign Assets Control (OFAC), in coordination with the Department of Justice (DOJ), has recently issued its first two new enforcement releases under the Trump administration, both in June 2025, sending a strong signal about the new administration’s enforcement priorities. First, OFAC imposed the statutory maximum civil pen- alty of USD215,988,868 on a California-based venture capital firm, GVA Capital Ltd., for knowingly managing an investment for sanctioned Russian oligarch Sulei- man Kerimov, while aware of his blocked status, in
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