views
🚨🧵SECTION 721 WEAPONIZATION? IS THIS THE TRUTH ABOUT THE TIKTOK BILL? 🧵
In April 2022, Deputy U.S. Attorney General Lisa Monaco emphasised the centrality of national security to DOJ’s white collar enforcement efforts, noting in particular the enforcement of sanctions evasion and export control violations as a key part of deterring corporate crime, stating “one way to think about this is as sanctions being the new Foreign Corrupt Practices Act."
Lisa Monaco is said to have drafted H.R 7521, the TikTok bill.
Is Section 721 - US sanctions law - being weaponized against US citizens, companies, and crypto currency—like section 702 has been?
Monday, March 11, 2024,
"As part of the new Russian sanctions actions, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added almost 300 entities to its list of “Specially Designated Nationals” (the SDN List)."
"U.S. persons are prohibited from engaging in virtually all dealings involving SDNs."
The greatest risk is not to the notified SDN, but to the US citizen or entity that "knowingly, or unknowingly, directly or indirectly," transacts with a designated SDN.
Penalties for U.S persons violating sanctions carry 20 year prison sentences and up to 1 million dollars in fines per violation. Sound familiar? The language is nearly verbatim that of The Restrict Act.
@MikeBenzCyber
natlawreview.com/article/us-gov…
iclg.com/practice-areas…
In April 2022, Deputy U.S. Attorney General Lisa Monaco emphasised the centrality of national security to DOJ’s white collar enforcement efforts, noting in particular the enforcement of sanctions evasion and export control violations as a key part of deterring corporate crime, stating “one way to think about this is as sanctions being the new Foreign Corrupt Practices Act."
Lisa Monaco is said to have drafted H.R 7521, the TikTok bill.
Is Section 721 - US sanctions law - being weaponized against US citizens, companies, and crypto currency—like section 702 has been?
Monday, March 11, 2024,
"As part of the new Russian sanctions actions, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added almost 300 entities to its list of “Specially Designated Nationals” (the SDN List)."
"U.S. persons are prohibited from engaging in virtually all dealings involving SDNs."
The greatest risk is not to the notified SDN, but to the US citizen or entity that "knowingly, or unknowingly, directly or indirectly," transacts with a designated SDN.
Penalties for U.S persons violating sanctions carry 20 year prison sentences and up to 1 million dollars in fines per violation. Sound familiar? The language is nearly verbatim that of The Restrict Act.
@MikeBenzCyber
natlawreview.com/article/us-gov…
iclg.com/practice-areas…
Between 2023 and 2024 the Office of Foreign Assets Control (OFAC) added 1,000 new Specially Designated Nationals (SDNs) to its list.
However, in October of 2022 OFAC sent a very clear message to US companies when it fined a Bellevue, WA based virtual currency exchange $24 million and $29 million, respectively, to Bittrex, Inc. (Bittrex).
"COMPLIANCE IS NOT OPTIONAL"
Why?
"Bittrex had reason to know that these users were located in jurisdictions subject to sanctions. At the time of the transactions, however, Bittrex was not screening this customer information for terms associated with sanctioned jurisdictions. This information was not voluntarily self-disclosed."
So, for not adopting then recently created, OFAC screening standards, Bittrex was fined millions for allowing third party transactions in jurisdictions subject to sanctions. They should have known...
home.treasury.gov/news/press-rel…
However, in October of 2022 OFAC sent a very clear message to US companies when it fined a Bellevue, WA based virtual currency exchange $24 million and $29 million, respectively, to Bittrex, Inc. (Bittrex).
"COMPLIANCE IS NOT OPTIONAL"
Why?
"Bittrex had reason to know that these users were located in jurisdictions subject to sanctions. At the time of the transactions, however, Bittrex was not screening this customer information for terms associated with sanctioned jurisdictions. This information was not voluntarily self-disclosed."
So, for not adopting then recently created, OFAC screening standards, Bittrex was fined millions for allowing third party transactions in jurisdictions subject to sanctions. They should have known...
home.treasury.gov/news/press-rel…
Lawfirms are now advising their clients of the consequences of not knowing, because apparently it's just that easy to get caught into the net of those who "should have known."
Now, with Congressional Democrats setting their sights on X, and Elon Musk, perhaps it's time to start asking more questions about the use of sanctions for compliance. And perhaps, there's more to this TikTok bill that must be answered prior it passing.mofo.com/resources/insi…
Now, with Congressional Democrats setting their sights on X, and Elon Musk, perhaps it's time to start asking more questions about the use of sanctions for compliance. And perhaps, there's more to this TikTok bill that must be answered prior it passing.mofo.com/resources/insi…
Following the original invocation of IEEPA, and the creation of OFAC's expanded authority, Congress had Stephan Mulligan author a full report and sidebar on all legislation and administrative actions.
Perhaps, it may now be prudent to request a part III of this report, PRIOR to the Senate passing HR 7521?
Perhaps, it may now be prudent to request a part III of this report, PRIOR to the Senate passing HR 7521?
Ultimately, if section 721 is to be another tool of the administrative state, used to target and seize the assets of U.S citizens, shouldn't we at least know first?
Perhaps it's time to start asking more questions.
Perhaps it's time to start asking more questions.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
