USA LAW AND PRACTICE Contributed by: Seward & Kissel LLP
respect to blocked property are to retain records of such transactions for five years after the date of such transaction, or for the period such property is blocked, and for at least five years after the date such property is unblocked. 3. Recent and Future Legal Developments 3.1 Significant Court Decisions or Legal Developments The most significant developments related to sanc - tions in the past three years include the following. • The rapid expansion and intensification of the Russian Foreign Harmful Activities Sanctions programme, following Russia’s invasion of Ukraine in February 2022, resulted in thousands of desig- nations of individuals and entities, including broad sectoral sanctions targeting a range of actors within key sectors of the Russian Federation’s economy. • Enhanced government enforcement against con- duct in violation of US sanctions laws and regula- tions, with a recent focus on secondary sanctions that target third-country actors and sanctions evaders. This focus has prompted high-level US officials to communicate at industry conferences that “sanctions are the new FCPA”, referencing that DOJ and other government agencies are now directing additional resources to investigate and enforce against violations of sanctions laws and regulations, mirroring those regulators’ historical focus on international violations of the Foreign Cor- rupt Practices Act by US persons (or others subject to US jurisdiction). • The April 2024 passage of the “21st Century Peace Through Strength Act”, which includes a provision extending the statute of limitations for enforce- ment of sanctions violations under both IEEPA and TWEA, from five to ten years. The lengthened statute of limitations will affect all of the numer - ous sanctions programmes enacted under IEEPA and TWEA, and gives the government additional breathing room to investigate and enforce against apparent violations of those laws and regulations.
• A final rule amending various reporting, procedures and penalties regulations, effective on 8 August 2024. In the new rule, filers are generally required to use the electronic OFAC Reporting System (ORS) for submission to OFAC of initial reports of blocked property and Annual Reports of Blocked Property pursuant to § 501.603 (d), and reports of rejected transactions under § 501.604 (d), among other changes seeking to streamline reporting requirements and require filings to be made via email rather than mail or facsimile transmission. • OFAC’s 23 May 2025 release of General License (GL) 25 in the Syria sanctions program. As stated by OFAC’s fact sheet, this license “effectively” lifts sanctions on Syria, together with a concur- rent waiver issued by the US Department of State under the Caesar Syria Civilian Protection Act. GL 25 authorises transactions that were previously prohibited under the Syria Sanctions Regulations, including, generally speaking, the provision of services to people and companies in Syria; new investment in Syria; transactions with the new Government of Syria and with certain blocked persons listed in the Annex to GL 25; and import and dealing in petroleum and petroleum products from Syria. 3.2 Future Developments Given that decisions concerning sanctions are often driven primarily by US national security and foreign policy considerations, there is continued turbulence with respect to China, Russia, Iran, Venezuela and other notable sanctions regimes. In 2025, a number of national security initiatives are being rapidly advanced by different elements of the US government, most of which are focused on China and other “countries of concern,” including Venezuela, Russia, Iran, Cuba and North Korea. This includes pro - grams such as the recently implemented “Outbound Investment Security Program” implemented by the Department of the Treasury and the “Data Security Program” advanced by the National Security Division of the Department of Justice – as well as sector-spe- cific legislative and regulatory initiatives, in industries such as the US maritime, logistics and shipbuilding sectors, as well as the semiconductor, artificial intel - ligence, and quantum computing sectors. At the time
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