Sanctions, Export Controls, and Customs regulations today sit at the forefront of U.S. foreign policy, leveraging the country’s economy in a manner having ripple effects on manufacturers, resellers, distributors, logistics providers, and financial institutions.
Akrivis has long been a prominent and established name in this area, serving as a “go-to” firm for clients around the world seeking high level expertise on compliance and enforcement issues.
Akrivis handles a broad range of complex and sensitive matters for clients whose international business activities involve the movement of goods and services across borders, and whose trade and investment activities may be controlled for national security, foreign policy, anti-terrorism, crime control, or non-proliferation reasons. These issues arise in the context of government inquiries and investigations, settlements of enforcement actions, audit committee and internal investigations, corporate due diligence, and complex cross-border transactions.
Akrivis regularly counsels on a host of regulatory laws that affect their international business, including sanctions, export controls, customs regulations, and foreign investment in the United States. We routinely represent before the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), the U.S. Department of Homeland Security’s Customs & Border Protection (CBP).
More Detail
U.S. trade policy is increasingly at the forefront of national security, with its impact felt far beyond the borders of the United States. These policies leverage the U.S. economy and have pronounced ripple effects on not only manufacturers, resellers, distributors, logistics providers, but also financial institutions and other sectors. Akrivis has long been a prominent and established name in this area, serving as a “go-to” firm for clients around the world seeking high level expertise on compliance advisory and enforcement. We handle a broad range of complex and sensitive matters for clients whose international business activities involve the movement of goods and services across borders, and whose trade and investment activities may be controlled for national security, foreign policy, anti-terrorism, crime control, or non-proliferation reasons. These issues can arise in the context of licensing, government inquiries and investigations, settlements of enforcement actions, audit committee and internal investigations, corporate due diligence, and complex cross-border transactions.
Our clients benefit from our subject matter expertise, deep knowledge on critical regions of the world that are on the frontlines of U.S. national security-driven trade policy, and our fluency in key languages such as Russian, Persian (Farsi), and Spanish, among others.
Sanctions & Export Controls
Akrivis has a broad-based sanctions and export controls practice, advising companies around the world on regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the U.S. Department of Commerce’s Bureau of Industry & Security (BIS). This includes general advice, licensing, developing compliance policies, delistings, and other civil as well as criminal enforcement. Our clients in this space have included major multinational financial institutions, as well as manufacturers, global technology companies, family offices and companies in sectors such as hospitality, engineering, resellers, and sovereign investment.
Customs
The role of customs has continually expanded in recent years as a tool of U.S. trade and security policy. We have represented companies navigating the ever evolving tariff rules of the United States, as well as sanctions administered by the U.S. Department of Homeland Security (DHS) Customs & Border Protection (CBP), such as in the context of a Withhold Release Order (WRO). This work also overlaps with other regulatory areas such as transportation and food and drug regulation, on which we have also advised clients.
Committee for Foreign Investment in the United States (CFIUS) and Outbound Investment
Both inbound and outbound investment represent a key part of the ever-evolving national security legal framework in the United States. The Committee on Foreign Investment in the United States (CFIUS) continues to expand its jurisdiction and role in regulating inbound investment in sectors of the U.S. economy critical to national security, and OFAC now regulates outbound investment in certain sensitive technologies involving countries of concern. Akrivis has been advising clients on both categories of activity.
Foreign Corrupt Practices Act (FCPA)
Dovetailing our trade security policy is our FCPA practice. We have represented U.S. and foreign clients in federal investigations of alleged FCPA violations, advised parties on complying with the FCPA, including helping integrate proper internal procedures.
Representative Matters
Examples of our work include:
Securing the removal of two Russian ex-bankers from OFAC’s List of Specially Designated Nationals and Blocked Persons (the SDN List)
Successfully representing clients in responding to OFAC Administrative Subpoenas
Securing the removal of multiple companies from the BIS Entity List and a removal from the Unverified List (UVL)
Applying for licenses from OFAC and the BIS for a host of activities, such as transactions involving Iran, Afghanistan, Venezuela, Cuba, and Russia
Representing clients before CBP on the Xinjiang Uyghur Autonomous Region (XUAR) Withhold Release Order on cotton and tomato products, securing the release of detained goods
Devising robust compliance policies for businesses in the United States and abroad to comply with U.S. policy with key risk abating approaches
Assisting companies having difficulty in foreign wire transfers due to ongoing federal investigations or simply outdated information in screening databases
Victores (Case Studies)
OFAC Expands Crackdown on Iran’s Energy, Logistics, and Finance Networks
OFAC has in recent weeks accelerated enforcement action against Iran’s energy sector, including oil and petrochemicals, targeting players in Iran, China, and elsewhere, part of a broader effort that has been ongoing for over a year.
The agency has also targeted Iran’s financial sector and payment systems by designating scores of entities outside Iran onto the SDN List.
These actions reflect the Trump Administration’s policy of maximum pressure and “economic fury” on Iran and underscore the need for smarter, more dynamic compliance by companies operating globally, particularly in key sectors and regions.
Introduction
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has in recent weeks accelerated its targeting of Iran’s energy sector and related supply chains, designating a web of foreign refineries, payment facilitators, and exchange houses around the world, and clarifying its position on Iranian regime “toll” payments for safe passage in the Strait of Hormuz and dealings with Iranian digital exchanges. In addition to new rounds of designations, OFAC issued two Iran-related sanctions risk alerts – one for financial institutions, emphasizing the risks posed by independent oil refineries in China for their alleged role in transacting sanctioned Iranian crude oil,1 and a second clarifying that payments for the safe passage of vessels through the Strait of Hormuz bear sanctions risks for U.S. and non-U.S. persons regardless of payment method.2
Alongside OFAC’s actions, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released an advisory yesterday reminding financial institutions of their reporting obligations under the Bank Secrecy Act (BSA) if they suspect activities related to financing for Iran’s the Islamic Revolutionary Guard Corps (IRGC). The advisory emphasizes activities related to laundering oil smuggling proceeds.3
These very recent actions underscore the Trump Administration’s expanding emphasis on targeting Iran’s oil sector and expanding sanction violations. Given the international reach of Iran’s vast web of sanctions circumvention, compliance challenges are pervasive and not limited to Iran. This effectively mandates companies in the oil and related sectors to exercise heightened vigilance.
Context
In a span of three days, OFAC issued two alerts on Iranian sanctions risks:
April 28, 2026: Covering financial institutions of the risk in dealings with Chinese independent refineries, also known as “teapot” refineries, that could be purchasing and refining Iranian crude oil; and
May 1, 2026: Clarifying that payments to Iran for passage through Strait of Hormuz bear sanctions risk for U.S. and non-U.S. persons.
Less than two weeks later, FinCEN issued an advisory on May 11, 2026 on reporting suspicious activities related to Iranian sanctions evasion, reminding financial institutions of the reporting requirements under the BSA on suspicious activities related to funding and facilitating the procurement networks supporting the IRGC, especially through use of front companies, facilitator networks, and digital assets. This Advisory also provided key red flags to consider in suspicious transactions.
These recent alerts underscore the Treasury Department’s commitment to maintain comprehensive sanctions on Iran and especially the country’s oil, petroleum, and petrochemical sectors. This is relevant not just for U.S. persons who are prohibited from transacting with any blocked entities, but also non-U.S. persons, which can face secondary and derivative sanctions exposure.
Targeting Iran’s oil and petrochemical sector and related shadow banking network
OFAC’s actions recent weeks, when reviewed in isolation or in the agency’s broader actions against Iran since last year, send a clear signal that Iran’s oil and petrochemical and the related shadow banking and shipment sectors are a key target as part of the broader maximum pressure campaign against the Iranian regime.
Specifically, OFAC has in the period since May 2025 taken:
Oil and Petrochemical Sectors: 16 actions, resulting in the following additions to its List of Specially Designated Nationals and Blocked Persons (the “SDN List”):
55 individuals
300 entities
202 vessels
Eight separate actions against Iran’s shadow banking networks that are often used to process oil-related payments, resulting in the following designations onto the SDN List:
50 individuals
121 entities
Clarified via a Frequently Asked Question4 (FAQ) on its website that Iranian digital asset exchanges are considered blocked.
Confirmed via another FAQ that sanctions prohibit payment to the Iranian regime and/or the IRGC by US persons and could expose foreign financial institutions to sanctions exposure.5
Many of these designations have been under Executive Order (EO) 13902 (January 10, 2020), a broad-based authority executed by President Trump in his first Administration allowing for the blocking of parties operating in key sectors of Iran’s economy. Other authorities include the Global Terrorism Sanctions Regulations, 31 CFR Part 594 (the “GTSR”), EO 13949 (September 21, 2020), and the Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 CFR Part 544 (the “NPWMD”). OFAC has also relied on sectoral (non-blocking) authorities of the Iranian Financial Sanctions Regulations, 31 CFR Part 561 (the “IFSR”), with parties under this designation not being blocked (described below), but rather substantially limited in the scope of financial activities they can engage in with U.S. financial institutions.6
U.S. persons are generally prohibited from nearly all transactions in goods, services, and technology with parties on the SDN List, and any assets in which such parties hold an “interest,” a term OFAC defines broadly, that are in the United States or coming into the possession of a U.S. person (e.g., U.S. companies, citizens or permanent residents regardless of where in the world they are located, or any other person physically in the United States) must be blocked.
The effects can be far more pronounced as, under OFAC’s “50 percent rule,” entities owned in the aggregate 50% or more by blocked parties are themselves considered blocked and under the same restrictions as their upstream SDN owners. While all SDNs are “blocked,” not all blocked parties are SDNs. This is a key point - These entities are often not named on the SDN List, highlighting the need for increased vigilance in due diligence and compliance.
While the limitation on dealings with blocked parties are generally aimed at U.S. persons, such dealings can subject non-U.S. persons to derivative blocking, and today’s global derisking landscape in fields such as banking means blocked parties invariably face similar restrictions even outside the United States. Specifically, the designations can trigger a cascading “de-platforming” of these entities by non-U.S. businesses outside the United States, resulting in a loss in banking privileges, financial freezes, and broader limitations.
In addition to OFAC’s alerts, FinCEN’s May 11, 2026 alert on Iran’s shadow banking network, using BSA data published in October 2025,7 identified that shell companies linked to Iran moved roughly $5 billion in the global financial system in 2024.8 This supplements another FinCEN’s advisory from June 2025 on exchange houses and front companies being used to settle the proceeds from Iran’s oil and petrochemical trades.
The increased enforcement is not surprising due to the continuous evolution of sanctions evasion tactics used by parties dealing in Iran’s oil and gas and related sectors. More broadly, OFAC signaled in late March that it is looking beyond ownership and interests of blocked property to “underlying practical and economic realities” of transactions in its enforcement and designation actions.9 As a result, oil traders and financial institutions could inadvertently violate sanctions even if none of the transacting parties ostensibly have a connection to Iran and none are blocked pursuant to OFAC regulations or Executive Orders.
Examples of these less apparent sanctions violations include the “rebadging” of oil --- re-branding oil of sanctioned origin as originating from a non-sanctioned origin to bypass restrictive measures from buyers or intermediating parties. As such, a downstream transaction distanced from any blocked parties on paper and ostensibly bearing no evident reference to Iran could nonetheless run afoul of U.S. sanctions.10
The risk of sanctions violations for both U.S. and non-U.S. persons is especially salient in light of OFAC’s recent temporary authorizations for certain in-transit oil cargoes. In March 2026, OFAC temporarily eased sanctions on Iranian-origin oil through Iran-Related General License (GL) U, authorizing certain transactions involving in-transit Iranian-origin cargoes through April 19, 2026. Almost concurrently, on March 12, 2026, OFAC issued similar authorizations for in-transit Russian-origin oil GL 134, which was valid through April 11, 2026. As the origin of oil heavily can heavily impact the sanctions exposure associated with dealings in downstream products, bad-faith actors utilize alternative payment methods, front companies, or fraudulent identification to ship the sanctioned crude to teapot refineries. Notably, refining could make tracing the oil’s origin logistically more difficult, involving the use of petroleum forensics on certain isotopic footprints. By imposing pressure on the entire supply chain of Iranian oil, OFAC ensures that the chemical transformation inside a refinery cannot be abused as a legal shield to mask the sanctioned crude origin of non-sanctioned refined products.
A second key focus of the Treasury Department’s enforcement is on Iran’s multi-jurisdictional shadow banking networks, as highlighted in the recent FinCEN advisory. Given the de facto lack of formal links between Iranian banks and their foreign counterparts (e.g., by disconnecting them from SWIFT and correspondent banking relations), Iran has in recent decades increased reliance on third country exchanges and paying agents, as well as triangulated payments. While such entities are often for legitimate purposes, they can enable illicit proceeds from sanctioned oil sales to repatriate to the Iranian regime. OFAC highlighted this issue in January when targeting numerous so-called “rahbar” companies, basically overseas agents of Iranian financial institutions that handle hard currency and international trade transactions for Iran by proxy.
Shadow banking networks commonly use Iranian exchange houses to manage front and trading companies, exploiting gaps in regional bank reporting requirements, such as policies intended to ease banking friction in commercial free trade zones, to open accounts and conduct large, opaque transactions. Other networks falsify the source of funds to evade detection by regional banks with U.S. correspondent banking relationships, allowing foreign currency to be converted into U.S. dollars. These types of fraudulent and opaque structures, by design, make U.S. and non-U.S. financial institutions prone to inadvertently moved illicit funds through the global financial system.
OFAC’s enforcement appears to reflect a commitment to close the banking gaps. Notably, common third-country jurisdictions for such front companies are also among the top targeted jurisdictions for shadow banking enforcement, and increasingly such countries are cooperating in a crackdown on illicit Iranian activities. Additionally, as digital wallets rise in prevalence, especially among illicit financial operators to evade detection common to a traditional banking environment, OFAC also targeted crypto-based funds facilitators in the September 16, 2025 designations, IRGC-linked digital asset exchange on January 30, 2026, and facilitators building circumvention infrastructure in other actions. In particular, OFAC listed digital currency addresses for two coordinators of crypto-based sales in its September 16, 2025 notice.11
Key Takeaways
OFAC and FinCEN’s recent actions reflect a concerted effort to target activities that provide funding for the Iranian regime and recent enforcement action should be viewed in the broader context of the current U.S.-Iran conflict and the Trump Administration’s maximum pressure campaign against Iran. Current geopolitics driving down the supply of oil and the de facto closure of the Strait of Hormuz has not only disrupted supply chains but could easily accelerate sanctions exposure risks, OFAC and FinCEN’s alerts provide a window to the private sector into the Treasury Department and more broadly, the executive branch’s sanctions enforcement priority, noting that this policy could easily lead to more criminal enforcement of violations as well both for companies, and perhaps more likely for individuals, such as corporate executives and traders.
As with most sanctions enforcement, players in the energy and logistics as well as related sectors should be cognizant of and responsive to the shifting legal and enforcement landscape and respond to the ever-evolving risks presented. While foreign companies doing business in this sphere risk blocking sanctions, civil and criminal enforcement, U.S. companies and individuals can face civil and criminal penalties for similar allegations.
Given this reality, U.S. and non-U.S. businesses and executives can, in consultation with expert counsel and compliance specialists:
Become fully aware of key sector-specific risks and not being willfully unaware. These include:
Evolving trends and patterns in sanctions evasion tactics, defining key red flags
The use of intermediary and front entities in both procurement and financing
Supply chains
Supporting logistics infrastructure (e.g., payment systems and shipping)
“Phantom” Iran related transactions – these can be illicit sales and payments for the benefit of Iran and/or blocked entities where no parties appear to be Iranian or connected to Iran, nor blocked
Procurement or payment opportunities that look “too good to be true”
Strange or atypical payment methods
Respond to shifting risks. This is done by:
Defining risk appetite based on knowledge of the above
Systematically incorporating heightened and expanded counterparty due diligence, including robust “know your customer” (KYC) and “know your customer’s customer” (KYCC) approaches, with a clear strategy to obtain truthful ultimate beneficial owner (UBO) information to determine potential blocking or simply diversion and even reputational risks
Identifying thresholds for when to rely on expanded business intelligence beyond internal “in house” capabilities, such as those offered by third party diligence providers and whether to invest in broader based diligence tools; and
Expanding and strengthening contractual representations and warranties, covenants, and force majeure clauses in agreements to address and mitigate sanctions exposure.
Periodically reassessing risk appetite and risk management approaches and tailoring processes based on sectoral shifts and changing geopolitical realities.
Understanding that as the regime seeks to rebuild facilities and plants damaged from U.S. and Israeli attacks that obscure, shadowy procurement behavior and processes may emerge, and U.S. enforcement against such activities will likely accelerate on both civil and criminal fronts
The Treasury Department’s actions vis-à-vis Iran in many ways reflects the broader contours of U.S. sanctions and export control policies – ever-expanding and underscoring the need for compliance. Such compliance is becoming increasingly challenging given the increasing complexities of regulatory frameworks and the expansion of prohibited parties lists such as the SDN List. This highlights the need for relentless attentiveness, hypervigilance, and by extension, properly directing company resources to understand and meet these needs.
Special thanks to Kristen Xiao for her help with this Legal Update.
This Legal Update is intended solely for informational purposes and should in no way be construed as legal advice, nor shall the information shared here result in or constitute the formation of an attorney-client relationship with anyone who reads it. If you have any questions or are unclear on any of the subject matters addressed or discussed in this Legal Update, please consult a licensed legal professional.
8U.S. Dep’t of the Treasury, Financial Crimes Enforcement Network, FinCEN Alert on the Use of Front Companies, Financial Facilitators, and Digital Asset Infrastructure by Iran’s Islamic Revolutionary Guard Corps to Evade Sanctions and Launder Proceeds (May 11, 2026), https://www.fincen.gov/system/files/2026-05/FinCEN-Alert-IRGC.pdf.
Akrivis Law Group, PLLC Secures Removal of Russian Ex-Banker Mikhail Zadornov from OFAC SDN List
WASHINGTON, D.C. – April 7, 2026 – Akrivis Law Group, PLLC is pleased to announce that on April 3, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) officially removed Mikhail Zadornov from the Specially Designated Nationals and Blocked Persons (SDN) List.
In a landmark ruling, the U.S. Supreme Court rejected President Trump’s sweeping tariffs, holding that the International Emergency Economic Powers Act1 (IEEPA) does not authorize the President to impose tariffs. The Court delivered its opinion on the consolidated cases of Learning Resources, Inc. v. Trump and V.O.S. Selections v. Trump and upheld the conclusion from lower court ruling that the Presidential power to impose tariffs exceeds the authority granted by the Congress under IEEPA, a 1977 statute traditionally used as an authority for the imposition of U.S. sanctions against particular jurisdictions as well as legal and natural persons. As a result of the Supreme Court’s ruling, U.S. importers could potentially collect refunds on excess tariffs paid, with reports suggesting over $175 billion having been paid in such additional tariffs.2
Global Encryption, Al, Cloud & Cyber Export Controls
Senior Counsel Valentin Povarchuk will be speaking at the ACI Global Encryption, AI, Cloud & Cyber Export Controls conference in San Francisco on March 16-17 to share his insights building export-controlled technology control plans at multinational manufacturing and technology companies. We encourage our clients and colleagues working in this area to take part.
Farhad Alavi quoted on Cuba sanctions in Bloomberg
Managing Partner Farhad Alavi was interviewed and quoted in a Bloomberg article titled Did Donald Trump’s Executives Violate the Cuban Embargo? The article covers repeated travel to Cuba by affiliates of the Trump Organization where potential hotel and golf course sites were scouted on the island state, and how this can be interpreted as a violation of the United States’ longstanding embargo. Despite a recent loosening of the Cuban sanctions, most business with Cuba remains off-limits for U.S. persons, and unfettered travel without specific authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is still not permitted, rather, travel must be through one of a limited number of permissible transactions.
Akrivis Scores Major Victory in Massive Sanctions Penalty Case
The U.S. Court of Appeals for the District of Columbia Circuit ruled today in favor of our client Epsilon Electronics, Inc., in a case against the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the primary U.S. government body administrating trade restrictions against sanctioned countries like Iran and Cuba. This case is already the subject of exceptional interest and significance for the trade compliance community. The ruling is particularly timely in the aftermath of the agreement over Iran’s nuclear program resulting in the 2015 Joint Comprehensive Plan of Action (JCPOA), which led to partial but not complete sanctions relief for Iran.
Client Alert: Reintroduction of Iran Sanctions following US withdrawal from the JCPOA
November 6, 2018. Akrivis Law Group, PLLC is pleased to issue its latest Client Alert, titled U.S. Completes Reintroduction of Post-JCPOA Iran Sanctions. The United States completed its phase-in of sanctions against Iran following the decision by President Donald Trump to withdraw from the Joint Comprehensive Plan of Action (JCPOA, commonly referred to as the Iran nuclear deal), which has been entered into by Iran and the “P5+1” states (the United States, United Kingdom, France, Russia, China, and Germany) in 2015 and implemented in 2016. These are mainly sanctions that had been lifted and/or relaxed as a result of that agreement.
On October 18, 2017, Akrivis Law Group, PLLC with the help of its friends at AmCham Abu Dhabi, held a compliance briefing at the Ritz-Carlton Dubai International Financial Center (DIFC). Managing Partner Farhad Alavi presented on the latest developments in the U.S. sanctions framework and answered questions.
Akrivis and Gorrisen Federspiel lead trade compliance seminar in Copenhagen
Akrivis Law Group, PLLC co-hosted a trade compliance seminar in Copenhagen, Denmark on April 8, 2019 with Gorrissen Federspiel, one of Scandinavia’s leading law firms. This workshop, held at the Danish firm’s Copenhagen headquarters, was led jointly by Farhad Alavi, Partner, and Camilla Collett, Partner, and Ida Krogh-Otzen, Assistant Attorney, Gorrissen Federspiel. The discussion focused on U.S. and E.U. sanctions, export controls, and related issues, both from a compliance and enforcement angle.
July 24, 2019. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) yesterday issued an advisory on matters pertaining to Iran’s civil aviation sector. Our Client Alert can be read and downloaded here.
Client Alert: Akrivis secures U.S. Entity List removal for Technology Links Pvt. Ltd.
We are proud to announce that we secured the removal of Akrivis Law Group, PLLC client Technology Links Pvt. Ltd. from the U.S. Department of Commerce’s Bureau of Industry & Security (BIS) Entity List.
Akrivis Law Group, PLLC and AZHA Avocats of Switzerland co-hosted a sanctions compliance seminar in Geneva at the Hotel President Wilson on Thursday, January 16, 2020. The event was headlined by Akrivis partner Farhad Alavi and AZHA partner Mercedeh Azeredo da Silveira. Other speakers from the United Kingdom and France also presented. The event was attended by roughly 60 people from throughout Europe.
U.S. Government Agencies Issue Joint Xinjiang Supply Chain Advisory
On July 1, the U.S. Departments of State, the Treasury, Commerce, and Homeland Security issued a detailed advisory (the “Advisory”). This is in response to the various types of regulatory exposure companies could face when dealing with suppliers and vendors in China’s northwestern Xinjiang region, given substantial allegations of forced labor and other human rights abuses there.
OFAC’s $4.1 Million Penalty on Berkshire Hathaway Subsidiary: Why it Matters
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on October 20 that it was imposing a $4.1 million penalty against Omaha, Nebraska-based Berkshire Hathaway Inc., its subsidiary MC International Metalworking Companies B.V. (“IMC”) and IMC’s wholly owned Turkish subsidiary, Iscar Kesici Takim Ticareti ve Imalati Limited Sirket (“Iscar Turkey”) for illicit transactions by Iscar Turkey with Iran. Iscar Turkey is in the business of manufacturing machinery, specifically cutting tools and inserts. The violations took place between 2012 and 2016, with Iscar Turkey entering into 144 transactions with Iran over that period. While announcements of OFAC penalties for sanctions violations are not rare, this one has a few notable points.
WorldECR article co-authored by Partner Farhad Alavi offers lessons on removal from the U.S. BIS Entity List and Japan’s METI End-User List
WorldECR (Export Control Review), a premier trade publication based in London, last month published an article co-authored by Akrivis Law Group, PLLC Partner Farhad Alavi and Daisuke Takahashi of Shinwa Sohgoh Law Offices in Japan on removal from the U.S. Department of Commerce’s Bureau of Industry & Security (BIS) Entity List and Japan’s Ministry of Economy, Trade, and Investment (METI) End-User List.
OFAC Penalizes Two Foreign Banks in One Week for U.S. Sanctions Violations: Key Takeaways
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued two penalties against non-U.S. financial institutions this past week. The agency’s December 28, 2020 settlement with Saudi Arabia-based National Commercial Bank (NCB) and its January 4, 2021 settlement with France-based Union de Banques Arabes et Françaises (UBAF) arguably demonstrate a more detailed evaluation by OFAC of compliance procedures and activities of foreign financial institutions processing U.S. dollar (USD) payments. Additionally, they may potentially signal more enforcement actions against foreign financial institutions going forward.
Partner Farhad Alavi to Speak on Panel on AmCham Abu Dhabi Webinar on US Trade Law & Policy Developments
Akrivis Law Group Partner Farhad Alavi will be on a May 25 webinar panel sponsored by the American Chamber of Commerce Abu Dhabi (AmCham Abu Dhabi) including former US Ambassador to the UAE Michael Corbin, as well as other distinguished guests. Titled “Trade Expectations in the Biden Era: Policy, Diplomacy and Export Controls,” the four member panel will discuss important trade issues in the new administration, with emphasis on how they impact the UAE, US-UAE trade, and the broader region. The panel will be moderated by Charles Laubach, secretary of AmCham Abu Dhabi and a partner at Afridi & Angell in Dubai.
Client Alert: U.S. Department of Commerce Adds 34 Parties to the Entity List
The U.S. Department of Commerce’s Bureau of Industry & Security yesterday added 34 entities (43 entries in total) to its Entity List, placing those parties under a near blanket ban on U.S. origin goods and technologies.
Our Client Alert, which summarizes the decision and provides insights into its significance, can be downloaded by clicking on the image below or clicking here.
As a potential invasion of Ukraine by Russia appears increasingly likely, many are speculating about the potential for U.S. sanctions. Our Client Alert, written by Akrivis Law Group partners Farhad Alavi (Washington) and Sam Amir Toossi (New York), provides some key insights as to what these trade restrictions may look like and how U.S. and non-U.S. companies can prepare accordingly. Download the PDF here.
Akrivis Partners Lead Practising Law Institute (PLI) CLE on Russia Sanctions
Akrivis Partners Farhad Alavi (Washington) and Sam Amir Toossi (New York) led a Continuing Legal Education (CLE) webinar hosted by the Practising Law Institute (PLI) on Russia sanctions issue, an ever important area in the international trade compliance field. The one-hour webinar, titled Overview of Russian Economic Sanctions – Past and Present, focuses on the ramp up of Russian sanctions, key new changes, and how companies can focus and sharpen their compliance approaches and wind-down strategies.
The U.S. Departments of the Treasury and State and the Federal Bureau of Investigations (FBI) yesterday issued a joint advisory (the “Advisory”) on North Korean information technology (IT) workers informing the business community of the sanctions risks associated with recruiting and hiring individuals such as freelance developers and alerting the public to deceptive practices by such persons. The interagency guidance explains how the North Korean IT workers operate, identifies indicators that raise red flags, and suggests mitigation measures, such as due diligence to help employers from unwittingly hiring them.
Following Russia’s invasion of Ukraine, the United States quickly imposed sweeping sanctions on Russian entities and individuals, which the Biden Administration immediately began to take steps to aggressively enforce. The Department of Justice (DOJ) announced the formation of the KleptoCapture Task Force, an interagency law enforcement effort to enforce the sanctions and restrictions designed to punish Russia’s actions in Ukraine.
US Executive Departments Issue Joint Sudan Business Advisory
The U.S. Departments of State, Treasury, Commerce, and Labor on May 23 issued an advisory for US businesses operating in Sudan, highlighting the growing risk to US businesses and individuals associated with conducting business with Sudanese State-Owned Enterprises (SOE), which are entirely controlled by Sudan’s military following its seizure of power on October 25, 2021.
US Department of Commerce Adds 26 Entities to the Entity List
On October 21, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) added 26 companies and individuals to the Entity List for engaging in activities contrary to U.S. national security and foreign policy. The entities added were from the following jurisdictions: China (6), Egypt (1), Pakistan (16), and the United Arab Emirates (UAE) (3). These additions were made under various rationale, including alleged violations of export controls, evasions of U.S. sanctions on Russia and Iran, and involvement in weapons programs of concern. The move follows a recent trend of significant increases in Entity List additions. Nine of the Pakistani entities named to the Entity List this week were added for being associated with a previously identified company already on the Entity List, while the remaining seven were added for contributions to Pakistan’s ballistic missile program. The three UAE entities as well as the one Egyptian entity were added for acquiring U.S.-origin parts to evade U.S. Sanctions imposed on Russia. The six Chinese entities were added for acquiring U.S.-origin items in support of their military modernization, dilatory and evasive conduct during end-use checks, and procurement of U.S.-origin items for Iran’s weapons of mass destruction program.
Biden Administration Tightens Vise on Sanctions Evaders, OFAC and BIS Collectively List Hundreds around the World
In its latest move to counter the national security threat posed by Russia sanctions invaders, the Biden Administration targeted over 300 companies and individuals around the world on Wednesday, October 30, placing them under either sanctions or export controls lists.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on May 23 issued a general license (GL-25) effectively lifting most prohibitions on U.S. persons on that country. This move follows President Trump’s meeting with Syrian President Ahmad Al-Sharaa earlier in the month, which in turn follows the fall of the Assad government in December 2024.
Akrivis Law Group PLLC is pleased to announce that the firm and our Florida-based partner Walter Norkin have been ranked in Chambers in the field of Litigation: White Collar Crime & Government Investigations.
Akrivis to Participate at 2025 IBA Annual Conference
Farhad Alavi (Washington Partner), Sam Amir Toossi (New York Partner), and Valentin Povarchuk (Washington Counsel) will be attending the 2025 International Bar Association (IBA) Annual Conference in Toronto this year, which will be held between November 2-7.
Client Alert: BIS issues new rule expanding scope of Entity List to cover affiliates
The U.S. Department of Commerce’s Bureau of Industry & Security (BIS) on September 29, 2025 took a significant yet anticipated step by adopting an Interim Final Rule, referred to as the Affiliates Rule, extending the restrictions imposed on entities listed on the Entity List (“EL”) to unlisted entities that are 50% or more owned by one or more of the listed entities. Presently, naming to the Entity List, the BIS’s strictest listing of non-U.S. parties, was limited to the named entity and none of its legally distinct affiliates or subsidiaries. This rule drastically changes that by capturing a wider range of related entities whose names would not necessarily be on the list. This action will have a momentous impact on many companies in China and elsewhere, significantly increasing compliance burdens, particularly on companies doing business in or with sensitive regions.
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