Far from the spotlight of Special Counsel Robert Mueller, a Maryland man has pled guilty and is awaiting sentencing for violating the Foreign Agents Registration Act (FARA), highlighting the U.S. Department of Justice’s (DOJ) renewed attention on enforcement of the once little-known FARA. Nisar Ahmed Chaudhry, a U.S. permanent resident and Pakistani national pled guilty… Continue Reading
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Commerce Officially Launches Investigation to Determine Whether Steel Imports Should be Restricted on National Security Grounds
Posted in Announcements, National Security, Trade RemediesThe Trump Administration has officially launched an investigation into whether steel imports should be restricted on national security grounds pursuant to Section 232 of the Trade Expansion Act of 1962. Section 232 is a rarely-used provision of U.S. trade law and was last invoked in 2001. The statute provides that investigations may be initiated upon… Continue Reading
Data Flows from China Could Be Significantly Restricted
Posted in National SecurityThis article is co-authored by Stephen Claeys and Shawn Chang of the Telecom, Media, & Technology practice. Proposed Chinese regulations (open in Google Chrome for English translation) could substantially limit the ability of companies in China from sending data outside of that country. If implemented, the regulations would potentially affect almost any type of business or… Continue Reading
FOCI Mitigation 101
Posted in National SecurityUnder Department of Defense (DoD) regulations and policies, government contractors that are owned or controlled by non-U.S. parties will not be awarded contracts that require access to classified information, unless safeguards are put in place. While the DoD recognizes that foreign investment in the U.S. defense industry may, in fact, serve national security interests, U.S.… Continue Reading
Commerzbank Fined $1.45 Billion For Sanctions And Money Laundering Violations
Posted in Anti-Money Laundering, Compliance, Economic Sanctions, National SecurityCommerzbank AG, the second-largest bank in Germany, is the latest in a series of foreign banks to be fined hundreds of millions of dollars for violations of U.S. sanctions and anti-money laundering (AML) laws. Commerzbank and its New York branch have agreed to pay fines and forfeitures totaling $1.45 billion, including $259 million imposed by… Continue Reading
CFIUS Considers Changes to Review Process
Posted in CFIUS, National SecurityReports indicate that in the wake of an order from the D.C. Circuit, the Committee on Foreign Investment in the United States (CFIUS) is considering changes to its review process for transactions involving foreign investment in the United States. Last year, CFIUS was ordered to disclose unclassified information on which it based a recommendation to… Continue Reading
Jail Time Handed Down for Zimbabwe Lobbyists
Posted in Economic Sanctions, National SecurityTwo individuals were recently charged and sentenced for violating U.S. sanctions against Zimbabwe and the Foreign Agents Registration Act (FARA), underscoring the potential legal risks associated with engaging in business activities with foreign entities that are subject to U.S. economic sanctions. It also highlights the dangers of failing to register under the little-known FARA. On Tuesday,… Continue Reading
Judge Orders CFIUS to Disclose Unclassified Information to Ralls
Posted in CFIUS, National SecurityLate in 2012, President Obama blocked Ralls Corporation’s (“Ralls”) acquisition of four Oregon wind farm companies, based on the recommendations of the Committee on Foreign Investment in the United States (CFIUS). Ralls, whose owners hold senior management positions within the Chinese company, Sany Group, was given 90 days to divest all interest in the wind… Continue Reading
The Foreign Agents Registration Act: A Trap for the Unwary
Posted in CFIUS, National SecurityThe Foreign Agents Registration Act (FARA), enacted in 1938 and administered by the FARA Registration Unit of the Counterespionage Section in the National Security Division of the Department of Justice (DOJ), is a little known requirement, statingthat all persons acting as an “agent of a foreign principal” must register with DOJ, unless an exception applies. … Continue Reading
Expanded CFIUS Review Under the DeLauro Bill?
Posted in CFIUS, National Security2014 continues to be an eventful year for the Committee on Foreign Investment in the United States (CFIUS). On September 18, 2014, Congresswoman Rosa DeLauro has introduced legislation that has the potential to significantly enlarge the Committee’s mandate. Currently, CFIUS reviews foreign acquisitions, mergers, and takeovers of U.S. businesses that raise national security concerns. The… Continue Reading
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