A major aspect of US foreign policy involves economic sanctions imposed on specific countries, organizations, or individuals. This area of international economic regulation presents major compliance challenges to US companies operating in the global market. The Executive Branch, US Congress, and local governments are, with increasing frequency, imposing restrictions on US companies and US persons to prevent trade or financial transactions with targeted governments or entities.
Moreover, the regulatory risks associated with US embargo programs are increasing, as US companies are restricted from doing business with third-country entities and persons acting on behalf of a sanctioned government. Sanctions regulation involves a high degree of government discretion and unpublished interpretive guidance, further complicating compliance.
A hallmark of Steptoe's practice is advising corporate clients on the scope and subtleties of US sanctions regulations. With regard to embargoed countries, we have assisted clients with direct export, investment, and financial transactions, hiring of foreign nationals, third-party distributor relationships, joint ventures, mergers and acquisitions, licensing agreements, and parent-subsidiary relationships. Clients receive advice on the jurisdictional reach of sanctions regulations, the meaning of key regulatory terms, and the use of regulatory exceptions to achieve legitimate commercial or marketing objectives.
We have extensive knowledge of the regulations implementing each current sanctions program as well as those that have been in force during the last three decades. Our current and historical depth is central to advancing clients’ interests because the interpretation of each sanctions regime depends on the foreign policy context in which the embargo is formulated, as well as the accumulated experience of US regulators in administering embargo programs. We are very familiar with the statutory framework, Executive Orders, regulations and case law of the Trading With The Enemy Act, International Emergency Economic Powers Act, UN Participation Act, National Emergencies Act, the Anti-Terrorism and Effective Death Penalty Act, and various "specialty" statutes directed at sanctioned countries and entities.
Noteworthy
Chambers Global
- Chambers Global, International Trade/WTO, Global Market Leaders (2008-2024)
- Chambers Global, International Trade: Export Controls & Economic Sanctions, (The Elite), US (2019-2024)
- Chambers Global, International Trade: Trade Remedies & Trade Policy, US (2020-2024)
- Chambers Global, Disputes, International & Cross-Border Capabilities, US (2019-2024)
- Chambers Global, International Trade: CFIUS Experts, US (2020-2024)
- Chambers Global, International & Cross-Border Disputes (International Firms), China (2021-2024)
- Chambers Global, International Trade/WTO (International Firms), China (2019-2024)
- Chambers Global, International Trade/WTO, Asia-Pacific Region (2019-2024)
- Chambers Global, International Trade/WTO, Europe-wide (2019-2024)
Chambers Asia-Pacific & Greater China Region
- Chambers Greater China Region, Corporate Investigations/Anti-Corruption (International Firms) (2022-2024)
- Chambers Greater China Region, International Trade/WTO (International Firms) (2022-2024)
- Chambers Asia-Pacific, International Trade/WTO, Asia-Pacific Region (2009-2024)
Chambers Europe
- Chambers Europe, International Trade/WTO, Europe/Belgium (2008-2023)
Chambers USA
- Chambers USA, International Trade: CFIUS Experts, Nationwide (2017-2023)
- Chambers USA, International Trade: Export Controls & Economic Sanctions, Nationwide (2017-2023)
- Chambers USA, International Trade: Trade Remedies & Trade Policy, Nationwide (2017-2023)
- Chambers USA, International Trade, Nationwide (2005-2016)
- Chambers USA, International Arbitration: Enforcement, Nationwide (2022)
Legal 500
- Legal 500 US, International Trade: Trade Remedies & Trade Policy (2023)
- Legal 500 US, International Trade: Customs, Export Controls, & Economic Sanctions (2023)
- Legal 500 US, International Trade: CFIUS (2023)
- Legal 500 US, Dispute Resolution: International Trade (2007-2022)
- Legal 500 UK, Dispute Resolution: International Arbitration (2010-2023)
- Legal 500 UK, Dispute Resolution: Public International Law (2010-2023)
- Legal 500 EMEA, Customs, Trade, WTO & Anti-Dumping, Belgium (2011-2019, 2023)
Law360
- Law360, International Trade Group of the Year (2010-2013, 2015, 2019)
Global Arbitration Review
- Global Arbitration Review, “International arbitration practice that impressed in the past year,” (2016)
- Global Arbitration Review, GAR 100 (2017-2023)
Global Investigations Review
- Global Investigations Review (GIR) 100, Top 30 Firms for Investigations Worldwide (2015-2023)
WorldECR
- WorldECR, Sanctions Law Firm of the Year, USA (2018, 2021), Sanctions Highly Commended Law Firm, USA (2017);
- WorldECR, Export Controls, Law Firm of the Year, USA (2015-2016), Highly Commended Law Firm, USA (2017), Runner-Up Law Firm of the Year, USA (2018)
- WorldECR, Sanctions Law Firm of the Year Runner-Up, Rest of the World (2021)
Asia Legal Business
- ALB China Awards, International Firm of the Year: International Trade (Award in 2021, Shortlisted in 2022 and 2023)
- ALB Japan Awards, Japan Practice Foreign Law Firm of the Year (Award in 2021, Shortlisted in 2023)
- ALB Korea Awards, Korea Practice Foreign Law Firm of the Year (2022 - 2023)
- Shortlisted, ALB China Awards, Regulatory Compliance Law Firm of the Year (2022 - 2023)
- Shortlisted, ALB Hong Kong Awards, Regulation and Investigations Law Firm of the Year (2020-2021, 2023)
China Business Law Journal
- China Business Law Award, International Trade (2013 - 2022)
- China Business Law Award, Corporate Compliance (2019 - 2022)
- China Business Law Award, Government and public policy (2022)
- China Business Law Award, Anti-Bribery & Compliance (2015, 2018)
China Law & Practice
- China Law & Practice, International Firm of the Year: Trade Award (2016, 2018-2020, 2022); Shortlisted (2021)
- China Law & Practice, Shortlisted, International Firm of the Year: Regulatory & Compliance (2018, 2021-2022)
Depending on the country involved, US economic sanctions can permit some activity with an embargoed country. For example, foreign subsidiaries of US companies may be able to transact business with a country subject to US embargo restrictions; however, the foreign subsidiary cannot involve US nationals, lawful residents, or its US parent, and the business opportunity cannot be referred to the subsidiary by the parent. A US company may be able to supply goods to a third-country company, even though that company may be using those goods for commercial activities in the embargoed country.
At the same time, US companies and US persons (even those employed abroad) must be wary of the regulatory pitfalls leading to corporate or personal exposure to enforcement proceedings.
The US government maintains a lengthy list of "Specially Designated Nationals," with whom US persons cannot do business. Many of the individuals and entities on this list are located in countries enjoying good relations with the United States. The US government also has developed expansive, yet informal, interpretations of the embargo prohibitions, many of which are not obvious from the regulatory language.
Steptoe has developed internal compliance advice and mechanisms for clients attempting to navigate the shoals of US economic sanctions. We work closely with in-house counsel and key management personnel to understand the nature of a company's operations, its products and services, and its internal structure, to ensure that corporate compliance is thorough, yet not unnecessarily restrictive. We have extensive experience in tailoring compliance manuals and SOPs to accommodate decentralized organizations.
Steptoe lawyers have a close familiarity with the Office of Foreign Assets Control (OFAC), which administers US embargo programs. We identify situations when advisory opinions or specific licenses from OFAC are needed, and then seek the authorization necessary to move forward with a proposed transaction.
OFAC actively initiates investigations and brings administrative enforcement actions for transgressions of US economic sanctions. Steptoe has extensive experience in handling investigation and enforcement proceedings, including routine information requests, pre-penalty contacts, negotiated settlements, and administrative proceedings arising from penalty actions.
We also have handled voluntary disclosures to the US government on terms that are favorable to our clients. Where appropriate, Steptoe uses its white-collar enforcement capability to supplement its sanctions experience in dealing with US government prosecutors.
Our experience in the area of economic sanctions includes:
- In-depth knowledge of the regulatory prohibitions applicable to countries sanctioned by the United States, the European Union, the United Kingdom, Japan, or the United Nations
- Jurisdictional issues in the administration of US economic sanctions, including extraterritorial aspects of export, reexport, investment, and transactional controls
- Formulation of compliance programs for multinational corporations and organizations with multiple levels of US management
- Structuring transactions to permit commercial activity consistent with regulatory compliance
- Advisory opinions, interpretations, license applications, and knowledge of regulatory exceptions and limitations
- Negotiation, voluntary disclosures, and defense of enforcement proceedings
- Familiarity with US regulatory institutions and the interagency policy-making and licensing process
Our clients span a wide spectrum of US industries, and include multinational corporations, small to mid-sized businesses, partnerships, trade associations, and individuals. A sampling of the industries we represent is as follows:
- Hydrocarbon exploration and production
- Refining
- Chemicals
- Construction
- Engineering
- Food and beverages
- Mechanical and industrial equipment
- Financial services
- Software
- Telecommunications and data transmission
- Legal
- Data processing
- Airline services
- Electronics
News & Publications
Publications
Sanctions Aren't the New FCPA - They're Harsher
Control Risks
March 14, 2024
By: Wendy Wysong
Steptoe Investigations & Enforcement Blog
Disruptive Technology Strike Force: Year in Review
March 7, 2024
Publications
Managing Foreign Direct Product Rule Compliance
Export Compliance Manager
February 2024
Media Mentions
Nikkei Asia Quotes Wilson Zhao in Article About DoD’s Chinese Military Companies List
February 9, 2024
Press Releases
Judy Wang Appointed to District Export Council of Southern California
January 29, 2024
Client Alerts
Regulatory Landscape in the EU and the UK: Key Considerations in 2024
January 22, 2024
By: Renato Antonini, Eva Monard, Byron Maniatis, Yongqing Bao, Elli Zachari, Mihai Ioachimescu-Voinea, Ruxandra Cana, Eléonore Mullier, Alexandra Melia, Zoe Osborne, Guy Soussan, Anne-Gabrielle Haie, Maria Avramidou, Charles Whiddington, Yumiko Takahashi, Zanda Romata, Darren Abrahams, Tom Gillett, Roman Spangenberg, Jonathon Egerton-Peters, Michael Lee
Client Alerts
Sanctions and Export Controls: Key Considerations in the EU and the UK in 2024
January 22, 2024
Client Alerts
Harnessing Automation for your Trade Compliance Program
January 10, 2024
By: Alexandra Baj
Press Releases
Chambers Asia-Pacific 2024 Recognizes Steptoe's Top International Trade Practice and Lawyers
December 20, 2023
Events
Webinars
Quarterly Investigations & Enforcement Update Webinar
January 25, 2024
Speakers: Jason Abel, Iris E. Bennett, Lee Berger, Christopher R. Conte, Amba M. Datta, Stacie R. Hartman, Lucinda A. Low, John J. Kavanagh, Michael Campion Miller, Zoe Osborne, Wendy Wysong
Webinars
An Insider's Perspective on DOJ with Andrew Adams
November 8, 2023
Speaker: Andrew C. Adams
Webinars
Investigations & Enforcement Webinar Series
October 19, 2023
Speakers: Andrew C. Adams, Jason Abel, Iris E. Bennett, Christopher R. Conte, Stacie R. Hartman, Patrick F. Linehan, Lucinda A. Low, John J. Kavanagh, Zoe Osborne, Wendy Wysong
Webinars
Investigations & Enforcement Webinar Series
July 27, 2023
Speakers: Jason Abel, Lee Berger, Christopher R. Conte, Amba M. Datta, Stacie R. Hartman, Patrick F. Linehan, Lucinda A. Low, Cáitrín McKiernan, Michael Campion Miller, Zoe Osborne, Wendy Wysong
Seminars & Events
Global Trade and Enforcement Symposium in Hong Kong
June 1, 2023
Speakers: Renato Antonini, Yongqing Bao, Brigida Benitez, Brian G. Burke, Ali Burney, Henry Cao, John Caracappa, Boyd Cloern, Robyn C. Crowther, Brian J. Fleming, Coy Garrison, Stacie R. Hartman, Zoey Hong, Stanley C. Kuo, Amy J. Lentz, Michelle L. Levin, Patrick F. Linehan, Lucinda A. Low, Jamie Lucia, Alexandra Melia, Cáitrín McKiernan, Eva Monard, Darryl Nirenberg, Gwendolyn Prothro Renigar, Angus Rodger, Guy Soussan, David M. Stetson, Grace Wang, Philip R. West, Charles Whiddington, Wendy Wysong, Lin Yang, Bo Yue, Wilson Zhao
Webinars
Investigations & Enforcement Webinar Series
April 27, 2023
Speakers: Jason Abel, Christopher R. Conte, Amba M. Datta, Stacie R. Hartman, John J. Kavanagh, Michael Campion Miller, Zoe Osborne, Wendy Wysong
Webinars
Impact of EU Sanctions on Compliance with EU Chemicals Requirements
December 8, 2022
Speakers: Ruxandra Cana, Eva Monard, Roberto Crespi
Webinars
Investigations & Enforcement Webinar Series
July 28, 2022
Speakers: Jason Abel, Iris E. Bennett, Amba M. Datta, Coy Garrison, Lucinda A. Low, Michael Campion Miller, Zoe Osborne, Wendy Wysong
Webinars
Investigations & Enforcement Webinar Series
April 21, 2022
Speakers: Iris E. Bennett, Christopher R. Conte, Stacie R. Hartman, Paul R. Hurst, Lucinda A. Low, Alexandra Melia, Michael Campion Miller, Wendy Wysong, Rachel B. Peck
Webinars
Possible Sanctions Against Russia: What You Need to Know
February 9, 2022
Speakers: Meredith Rathbone, Edward J. Krauland, Alexandra Baj, Matthew Coleman, Alexandra Melia, Guy Soussan, David M. Stetson
Client Alerts
Client Alerts
China's New Blocking Rules May Impact US Sanctions and Export Control Compliance Strategies for Many
February 10, 2021
By: Edward J. Krauland, Bo Yue
Client Alerts
Singapore Data Protection: Considerations for Data Driven Compliance Activities
February 1, 2021
Client Alerts
Sanctions Under the Biden Administration: A Return to 'Smart?'
November 24, 2020
By: Edward J. Krauland, Meredith Rathbone, Wendy Wysong, Jack R. Hayes, Peter Jeydel, Evan T. Abrams, Martin Willner, Jordan Cannon (Law Clerk)
Client Alerts
HKSE Listing Applicants: What You Should Know about Sanctions and Export Controls Due Diligence
October 21, 2020
By: Wendy Wysong, Ali Burney
Client Alerts
White House Memorandum Sets Out Best Practices for Agency Enforcement Actions
October 9, 2020
By: Wendy Wysong, Edward J. Krauland, Ali Burney, Meredith Rathbone
Client Alerts
US and EU Actions to Address Supply Chain Threats Caused by Reliance on Critical Mineral Imports
October 8, 2020
By: Jeffrey G. Weiss, Meredith Rathbone, Peter Jeydel, Yongqing Bao
Client Alerts
New Orders Issued Barring Imports into the US from Certain Xinjiang-Related Entities
September 18, 2020