Sanctions, Export Controls & Anti-Money Laundering

Overview

The Sanctions, Export Controls & Anti-Money Laundering practice group of Hughes Hubbard & Reed LLP advises clients on the full range of U.S. and European Union trade compliance, disclosures, enforcement actions, and authorizations involving the Commerce, State and Treasury Departments, the Department of Justice, as well as the European Commission and national competent authorities in the EU. Our team identifies and mitigates economic sanctions and export controls compliance risks, performs due diligence, investigates, and assists with potential remediation.

We regularly advise U.S. and foreign companies on licensing, commodity jurisdiction and classification issues, compliance with regulations governing the transfer of technology to foreign nationals, compliance programs, disclosures, enforcement matters (civil and criminal), and audits. We regularly conduct sanctions and export control due diligence in broad range of corporate contexts. We develop, evaluate, and assist in implementing sanctions and export control compliance programs. We also provide advice on the extraterritorial impact of U.S. export controls on overseas business transactions, counsel clients on the U.S. antiboycott regulations, and provide advice on the intersection of export controls and classified information requirements in designing compliance programs. We also provide advice on the growing reach of European Union sanctions and trade controls. Finally, we shepherd multinational companies through the foreign investment review process conducted by the Committee on Foreign Investment in the United States (“CFIUS”) and advise on compliance issues arising during the due diligence process in mergers and acquisitions.

As needed, our export control group draws upon Hughes Hubbard & Reed’s strengths in many intersecting areas, including international corporate transactions and joint ventures, employment, intellectual property, corporate governance, litigation and telecommunications.

For more information on our Sanctions, Export Controls & Anti-Money Laundering Practice, please contact:

Sean M. Reilly

Co-Chair

Michael H. Huneke

Co-Chair

Together, our team has represented a wide array of U.S. and foreign companies in export controls, sanctions, and related matters before the Commerce Department’s Bureau of Industry and Security (BIS), the State Department’s Directorate of Defense Trade Controls (DDTC), the Treasury Department’s Office of Foreign Assets Control (OFAC), and before CFIUS. We have also represented a wide array of European and international companies in sanctions, export controls and related matters before national competent authorities in the EU as well as before the European Commission. We also represent industries affected by U.S. and European foreign policy and sanctions-related export controls because of the location of their business operations, including telecommunications, aerospace and defense, energy, automotive, computers, information security (encryption), freight forwarding, general manufacturing, financial and accounting services, pharmaceuticals and specialty chemicals.

Our practice draws on the experience of members of the firm’s Anti‑Corruption & Internal Investigations, Arbitration, Corporate, and White Collar & Regulatory Defense practice groups. Our team includes lawyers fluent in French, German, Italian, Spanish, Mandarin, Norwegian, Polish, Russian, among other languages, and are often dual-qualified.

Enforcement Activities

Represent companies in enforcement matters, including investigations, disclosures, administrative and criminal enforcement proceedings.
Conduct internal investigations, prepare findings, and make recommendations with respect to disclosure obligations and corrective actions.
Negotiate with government enforcement officials to minimize penalties and avoid suspension or debarment from government contracting opportunities, loss of export privileges, or other potential administrative, civil, or criminal penalties
Assist clients in post-plea agreement/settlement matters, monitorships and consent agreements.

Compliance Advice and Audits

Advise U.S. and foreign firms on Commerce Department and State Department export and re-export controls applicable to their products, technologies, and personnel; and assist in obtaining any necessary export licenses.
Assist companies on export classification and commodity jurisdiction issues and preparation of any necessary requests.
Conduct audits and risk assessments, including government-required audits.
Assist companies on encryption controls, including classification, one-time review, use of mass market exception and filing of encryption reports with the Commerce Department.
Advise U.S. and foreign clients on issues arising from U.S. “deemed export” and “deemed re-export rules” (which govern the export of technology to foreign nationals both in the U.S. and abroad) in the context of employment, presentations at academic symposia and plant visits.
Assist clients in navigating the complex world of defense trade controls, including drafting and obtaining approval of Technical Assistance Agreements and Manufacturing License Agreements, advising on exceptions available under the International Traffic in Arms Regulations, and assisting with registration.
Provide customized training and compliance materials, and assist in establishing internal company compliance programs.
Advise companies on new regulatory developments and their impact on company operations.

Sanctions, Embargoes, and Extraterritorial Reach of U.S. Export Control Laws

Advise U.S. and non-U.S. companies, including foreign operations of U.S. companies, on global business implications of U.S. embargo and economic sanctions rules with respect to countries such as Crimea, Cuba, Iran, North Korea, and Syria with the terrorism and anti-narcotics trafficking sanctions.
Assist companies in developing sanctions compliance programs and training for foreign subsidiaries.
Prepare and obtain licenses from the Office of Foreign Assets Control.
Obtain advisory opinions from the Office of Foreign Assets Control.
Obtain waivers from the Commerce Department to permit authorized activity in sanctioned countries.
Assist financial institutions with compliance responsibilities.
Provide advice in use of limited exceptions to sanctions, including temporary sojourn, government contractor, and humanitarian provisions.
Provide legal opinions in foreign legal proceedings on implications of U.S. re-export control rules for non-U.S. business transactions.
Advise clients on the applicability of the Helms-Burton law regarding sanctions on persons doing business in Cuba.

Mergers, Acquisitions, and Divestitures

Represent multinational companies and foreign investors before CFIUS in connection with acquisitions of U.S. businesses.
Advise foreign investors on the applicability of the Foreign Investment Risk Review Modernization Act (FIRRMA) Pilot Program and filing strategies.
Assist companies with export controls, sanctions, and anti-money laundering issues and risk assessment in connection with due diligence.
Obtain government approvals in connection with mergers and acquisitions, including notifications to DDTC, national security clearance approvals and negotiating Foreign Ownership, Control, or Influence (FOCI) mitigation instruments with the Defense Security Service.
Provide advice in connection with mergers, acquisitions, and divestitures of companies that have operations in sanctioned countries.
Draft representations, warranties and other contractual provisions regarding compliance responsibility in connection with corporate acquisitions.

Anti-Money Laundering/ Countering the Financing of Terrorism

Advise financial services firms on obligations created by the Bank Secrecy Act and USA Patriot Act Amendments, including Know Your Customer (KYC) requirements and other related due diligence and reporting obligations.
Represent covered financial institutions in connection with FinCEN inquires, including 314(a) requests, and enforcement actions.
Advise in connection with the filing of Suspicious Activity Reports (SAR’s).

Anti-boycott Regulations

Advise major international firms on the anti-boycott implications of contemplated business activity.
Represent companies in compliance and enforcement matters in both Commerce and Treasury Department anti-boycott control regimes, including identifying boycott issues, taking corrective action, making reports and disclosures, and negotiating settlements.

Miscellaneous

Advise U.S. and foreign companies on export control issues arising in proposed contracting with the United States government.
Provide strategic advice and advocacy on legislative and regulatory export controls initiatives.
Advise companies on the multilateral regimes in the export controls field, and assist in developing and implementing strategies for change.
Work with companies performing classified contracts with the United States government to incorporate classified information handling requirements into export compliance programs.

Michael H. Huneke

Co-Chair

Sean M. Reilly

Co-Chair