U.S. TRI-SEAL COMPLIANCE NOTE ON COMPLIANCE OBLIGATIONS OF FOREIGN-BASED PERSONS

On March 6, 2024, the Department of Commerce, the Department of the Treasury, and the Department of Justice published the “Tri-Seal Compliance Note” entitled “Obligations of foreign-based persons to comply with U.S. sanctions and export control laws”. It can be downloaded at the following link: https://ofac.treasury.gov/media/932746/download?inline.

The abovementioned authorities highlight the applicability of U.S. sanctions and export control laws and regulations to persons and entities located outside the United States of America and draw attention to the enforcement mechanisms that are available to the U.S. government in case such laws and regulations are determined to have been violated.

In particular, the Note provides an overview of compliance requirements for non-U.S. persons with reference to the laws and regulations in question, a brief description of the role of the associated authorities, examples of the type of conduct that may be sanctioned, as well as examples of recent enforcement actions in which non-U.S. persons have been involved and sanctioned.

Lastly, the Note advises non-U.S. persons to take seriously the impact of U.S. sanctions and export control laws and regulations on their businesses and to take appropriate steps to understand the applicability of the laws and regulations at issue, the potential risks associated with breaching such laws and regulations, and the mitigation measures that may be adopted to minimize such risks.