News & Publications

Shearman & Sterling has published the latest issue of its FCPA Digest report, highlighting how FCPA enforcement actions have fared in 2022 amid a change of U.S. administration and enforcement priorities and the lingering impact of the COVID-19 outbreak and its disruption of market and governmental activity.

On February 14, 2023, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) added six Chinese entities to its Entity List for their contribution to components retrieved from the Chinese High Altitude Balloon (the “Balloon”) shot down on February 4, 2023 off the coast of South Carolina after crossing Alaska, parts of Canada, and the continental United States.

Partners John Nathanson (New York-Litigation) and Katherine Stoller (New York-Litigation) and senior associate Cáitrín McKiernan (Hong Kong-Litigation) contributed to the seventh edition of Global Investigation Review’s publication, The Practitioner’s Guide to Global Investigations.

With the war in Ukraine raging on, the U.S. continued to escalate its sanctions response against Russia.  The U.S. announced extensive trade and investment bans that prohibit U.S. persons from making any “new investment” in the Russian Federation, and imposed additional blocking sanctions on Russia’s largest banks and Russian elites. With the future of a revived JCPOA still in doubt, the U.S. resumed sanctions against Iran’s energy sector, taking aim at sanctions evasion networks tied to its state-owned oil company.

The world’s response to Russia’s invasion of Ukraine dominated the first quarter of 2022, as the US and its international partners coordinated efforts to impose unprecedented sanctions designed to isolate the Russian Federation from the global economy. The sweeping measures include the freezing of Russia’s foreign held reserves, blocking sanctions on Russia’s largest banks and Russian elites, sectoral sanctions against major issuers, and strict trade restrictions to deprive Russia of key goods and services. Elsewhere, the Department of Justice terminated its controversial “China Initiative” while the SEC identified six Chinese companies for potential de-listing from US exchanges for non-compliance with US audit requirements. Meanwhile, the US imposed sanctions on more conventional targets this quarter, including North Korean and Iranian ballistic missile procurement networks. Finally, OFAC announced settlements with US and non-US companies for prohibited dealings with Cuba and

Closing the year with a renewed focus on the People’s Republic of China, the Biden Administration imposed new export restrictions on US-origin technology to Chinese tech firms to hinder the PRC’s military and security apparatuses, sanctioned several Chinese officials in Hong Kong for purported encroachments on the region’s autonomy, and signed bipartisan legislation aimed at preventing the importation of goods produced by forced labor.  Meanwhile, the State Department sanctioned a construction company for its involvement in the Nord Stream 2 pipeline, as President Biden worked with allies to try to leverage NS2’s operation to deescalate tensions at the Russia-Ukraine border.   Amid a notable rise in cyber-attacks worldwide, OFAC sanctioned a virtual currency exchange for facilitating ransomware transactions and the Department of Commerce blacklisted companies who develop cyber-enabled technology.  Finally, enforcement actions this quarter highlight how human errors can lead to

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the U.S., the U.K., and globally, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

The Biden Administration this quarter announced fewer targeted sanctions, but issued several “whole of government” advisories regarding sanctions risks associated with China-related business dealings, as well as virtual currencies. OFAC also imposed new restrictions on the export of U.S.-origin munitions and military technology to Russia, sanctioned several Chinese officials in Hong Kong for purported encroachments on the region’s autonomy, and continued targeting military leaders and their support networks in Myanmar.

This quarter, the Biden Administration maintained its tough stance on China, revamping Trump-Era restrictions and expanding sanctions to include the PRC’s surveillance technology sector. In contrast, the Administration reversed years of U.S. Congressional policy by waiving key Nordstream 2 sanctions, effectively dropping U.S. opposition to the pipeline’s completion.

Shearman & Sterling has published the latest issue of its bi-annual FCPA Digest report, highlighting how FCPA enforcement actions have fared in the first half of 2021 amid a change of U.S. administration and enforcement priorities and the lingering impact of the COVID-19 outbreak and its disruption of market and governmental activity.

The first months of the Biden Administration signaled the new US President’s willingness to remain tough on China in the short term. Meanwhile, the new Administration appeared to pause the US “maximum pressure” policy against Iran as it engages in multi-lateral discussions to explore options for resuming US participation in a nuclear deal.

In this article, first published in Thomson Reuters Regulatory Intelligence on February 22, partner Brian G. Burke (New York & Shanghai-Litigation) and senior associate Mathew Orr (London-Litigation) consider the trend towards a “global” enforcement regime and how businesses can develop effective compliance strategies in response.

This is the second edition of UK Business Crime Review—an annual publication focused on the outcomes, trends and developments over the past 12 months that are likely to be of interest to businesses operating in the United Kingdom. While this publication primarily focuses on the introduction and use of criminal sanctions in the business crime space, we also consider key regulatory developments that are likely to be of interest to those managing financial crime risks within businesses.

On February 5, 2021, the U.K. Supreme Court handed down its judgment in Regina (On the Application of KBR Inc) v Director of the Serious Fraud Office [2021] UKSC 2. In a unanimous decision, the Court ruled that the Serious Fraud Office (SFO) cannot use its investigation powers under section 2(3) of the Criminal Justice Act 1987 (“the 1987 Act”) to compel a foreign company to produce documents it holds outside the U.K.—overturning an earlier High Court decision.

Last quarter, as the Trump Administration wound down, it continued to impose expanded sanctions against China and Iran.  New executive orders targeted Chinese app developers and banned U.S. investors from holding public securities in dozens of Chinese companies with perceived military ties.  In a last-minute effort to entrench its “maximum pressure” policy, the outgoing Administration sanctioned a host of actors in Iran’s financial and steel sectors and re-designated many Iranian targets under counterterrorism authorities, potentially making their removal politically more difficult.  Numerous other developments from last quarter included new legislative sanctions on the Nordstream 2 and Turkstream pipelines, the re-listing of Cuba as a State Sponsor of Terrorism, and continued US efforts to curb Venezuela’s oil exports.  Notably, in its first week, the Biden Administration has already signaled a new international approach, as Treasury Secretary Janet Yellen announced a general

Shearman & Sterling has published the latest issue of its bi-annual FCPA Digest report, highlighting how FCPA enforcement actions have fared amid a difficult year marked by the COVID-19 outbreak, the presidential elections, natural disasters and the ensuing disruptions of market and governmental activity.

For many businesses, Asia provides a wealth of opportunities, but there are also risks in doing business in a diverse region with legal systems and practices that may be unfamiliar to those more used to operating in Europe and the Americas.

For many businesses, Asia provides a wealth of opportunities, but there are also risks in doing business in a diverse region with legal systems and practices that may be unfamiliar to those more used to operating in Europe and the Americas.

For many businesses, Asia provides a wealth of opportunities, but there are also risks in doing business in a diverse region with legal systems and practices that may be unfamiliar to those more used to operating in Europe and the Americas.

In a world in which businesses face an ever-increasing compliance burden, the costs of failing to identify and manage business crime risks effectively have never been greater.

This quarter, the U.S. announced new sanctions and trade restrictions on China in response to its perceived intrusions on Hong Kong’s autonomy and reported human rights abuses in Xinjiang. The Trump Administration acted unilaterally to curtail Iran’s acquisition of conventional military weapons after receiving little international support for a snapback of U.N. sanctions.  And, in a last-ditch effort to stall completion of the Nordstream 2 and Turkstream pipelines, the U.S. expanded the scope of potential sanctions on vessel owners and service providers involved in construction activities. Finally, among other enforcement actions this quarter, several U.S. companies agreed to settle potential liability arising from compliance failures by foreign subsidiaries.

Prosecutors and regulators are signaling an intent to expand accountability amongst cryptocurrency platforms under U.S. laws and regulations, including the Bank Secrecy Act (BSA). On October 8, 2020, the United States Department of Justice (DOJ) released a report on enforcement challenges and areas of focus related to entities dealing in cryptocurrency. The report came shortly after the DOJ and the Commodity Futures Trading Commission (CFTC) announced an indictment and civil charges against directors and entities related to BitMEX, a platform for trading in futures contracts and other derivatives tied to cryptocurrencies, for failing to register with the CFTC as a Futures Commission Merchant (FCM) and to implement proper anti-money laundering (AML) measures.

This quarter, the U.S. announced new sanctions and trade restrictions on China in response to its recent encroachments on Hong Kong and its reported mistreatment of ethnic minorities. OFAC continued to target shipping companies dealing in Venezuelan oil, and also imposed sanctions on the global subsidiaries of Iran’s largest steel manufacturer. Meanwhile, Congressional leaders mull dramatic new sanctions to prevent completion of the controversial Nordstream 2 and Turkstream pipelines. OFAC also issued global advisories warning of the North Korean cyber-threat, and set forth “best practices” for the maritime industry to avoid sanctions exposure. Finally, a non-U.S. bank agreed to pay $86 million to regulators and prosecutors for sanctions violations caused by AML/KYC compliance failures.

Partner Philip Urofsky recently appeared in The Global Anti-Bribery and Corruption Insights Series podcast, hosted by consulting and accounting firm Nexdigm. He discussed the stress created by the ongoing COVID-19 pandemic on the U.S. economy, organizations, employees, and the government, and how it has led to an increased risk of corruption. The discussion covered the risks associated with various stimulus packages announced by the government to revive the economy alongside measures taken by authorities to enforce anti-corruption measures.

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the U.S., the U.K. and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

Partner Philip Urofsky and associate Oyinkan Muraina co-authored an article in the Anti-Corruption Report in which they discuss the difficulty in determining whether or not a royal family member is a foreign official under the FCPA.

Associate Jesse Van Genugten recently authored two articles addressing issues related to corporate anti-bribery investigations in the Review of Litigation and the Georgetown International Law Journal, respectively.

Partner Philip Urofsky, associate Jesse van Genugten, counsel Jonathan Swil and associate Mathew Orr, co-authored an article titled “Civil Litigation in the Aftermath of FCPA and U.K. Bribery Act Investigations.” The article, published in Anti-Corruption Report, notes that “securing a settlement with investigating authorities will not curb follow-up litigation by victims of corporate misconduct” and may instead “encourage it.” This means that companies should be prepared to defend against subsequent lawsuits or, at least, be ready to incur additional litigation and settlement costs after resolving an FCPA or U.K. Bribery Act investigation.

Regulators and law enforcement agencies are clear that businesses must maintain effective measures to prevent and detect financial crime even when faced with challenging circumstances. While the current pandemic may be a once in a lifetime event, many of the issues that organizations are grappling with can arise in a wide variety of situations. It has never been more important for businesses to implement robust policies and procedures that allow them to continue to meet their legal and regulatory obligations during periods of disruption and uncertainty.

U.S. sanctions authorities remained active in the first quarter of 2020, even as international focus turned toward combating the COVID-19 pandemic.

This is the first edition of U.K. Business Crime Review—an annual publication focused on the outcomes, trends and developments over the past 12 months that are likely to be of interest to businesses operating in the United Kingdom.

The landmark decision in the Ruta del Sol arbitration against the Agencia Nacional de Infraestructura – ANI, the Colombian government agency in charge of awarding concessions through public-private partnerships for the design, construction, maintenance, operation and administration of transport infrastructure in Colombia, addresses the key issue of whether governments must honor termination payments when the award of a concession or governmental agreement was tainted by corruption during the awarding process. In this landmark decision, the Arbitral Tribunal awarded the termination payments notwithstanding its declaration that the agreement was null and void, but did so (i) only in favor of those parties who had been unaware of the unlawful acts and who had acted in good faith and without fault (for example, the creditors); and (ii) in a substantially reduced amount and based on an unfavorable order of priority from the perspective of the

On 31 January 2020, Airbus SE (Airbus) reached final agreements with the French Parquet National Financier (PNF), the U.K.’s Serious Fraud Office (SFO) and the U.S. Department of Justice (DoJ) in order to resolve investigations into allegations of bribery and corruption. The agreement reached with the U.S. authorities also resolves investigations by the DoJ and the State Department into inaccurate and misleading filings made by Airbus with the State Department pursuant to the International Traffic in Arms Regulations (ITAR).

Partner Philip Urofsky (Washington, D.C.-Litigation) appeared in the FCPA Compliance Report podcast hosted by Tom Fox. In the interview, Philip discusses highlights from Shearman & Sterling’s FCPA Recent Trends and Patterns report, including enforcement actions and strategies seen in 2019, the issue of parent-subsidiary liability under the FCPA, and key developments in the UK around Bribery Act prosecutions and enforcement actions.

Partner Philip Urofsky (Washington, D.C.-Litigation) appeared in the FCPA Flash podcast hosted by Mike Koehler, editor of the FCPA Professor blog. In the interview, Philip talks about whether the government has continued to advance expansive FCPA enforcement theories, the government’s expectations surrounding cooperation, including whether the government could be more specific, and new players in the anti-corruption enforcement world.

The final quarter of 2019 saw a burst of wide-reaching sanctions developments from China to Latvia, capping off another record year of U.S. sanctions implementation and enforcement.

Shearman & Sterling’s bi-annual Recent Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the U.S., the U.K. and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

The third quarter of 2019 saw continued activity across a wide spectrum of U.S. sanctions programs. Pressure against the Maduro Regime reached new heights as OFAC sanctioned the entire Government of Venezuela, simultaneously threatening punitive measures against its international trading partners. As the continued viability of the Iran nuclear deal was thrown into further doubt, OFAC escalated its use of U.S. secondary sanctions by designating several major Chinese shipping companies for continuing to transport Iranian oil exports. Meanwhile, the U.S. resumed pressure on North Korea following a lack of progress in denuclearization talks and imposed new sanctions on Russia for its alleged involvement in chemical weapons attacks and election interference. Finally, as European courts begin giving effect to the E.U. blocking statute, one recent U.K. court decision affirmed the ability of non-U.S. banks to contractually mitigate their exposure to certain U.S. “secondary

In the recent case of Lamesa Investments Ltd v Cynergy Bank Ltd [2019] EWHC 1877 (Comm), the High Court upheld the bank’s attempt to avoid a common banking dilemma: the ‘double jeopardy’ of being contractually liable to make a payment in one jurisdiction that risks the imposition of criminal or regulatory liability in another. In this case, if the bank had paid interest under a loan, it risked the imposition of U.S. ‘secondary sanctions.’

This quarter, the Trump Administration continued its “maximum pressure” campaign against Iran, extending sanctions to its metals industries and senior officials as prospects of an EU alternative payment system all but collapsed. OFAC also maintained focus on Venezuela, disrupting the country’s oil revenues and its ties to Cuba. Meanwhile, OFAC published new guidance for building an effective sanctions compliance program and revised regulations governing reporting requirements. On track for a record number of enforcement actions, OFAC announced multiple resolutions, including settlements with three U.S. entities for arranging Cuba-related travel services. Finally, Turkey’s scheduled purchase of a Russia-developed defense system will test the Trump Administration’s resolve in imposing mandatory CAATSA sanctions.

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the U.S., the U.K. and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

In this quarter, OFAC lifted sanctions on Rusal and other companies following divestment by Oleg Deripaska.  Meanwhile, as Venezuela descends into economic and political crisis, the US targeted PdVSA and others to hasten regime change.

Closing out 2018, OFAC announced its plan to lift sanctions against United Co. Rusal and others, despite bi-partisan opposition from Congress. Simultaneously, OFAC continued to target Russia’s defense and intelligence sectors for continued destabilizing activity in Ukraine, and worldwide elections interference.

Partner Philip Urofsky (Washington, D.C.- Litigation) was interviewed in the FCPA Compliance Report Podcast, where he discussed some of the top highlights from Shearman & Sterling’s FCPA Digest 2019 with host Tom Fox. The episode aired in January 2019.

Partner Philip Urofsky (Washington, D.C.- Litigation) was quoted in a Corporate Counsel article titled “FCPA Lawyer Predicts GCs, CCOs Have Targets on Their Backs in 2019.”

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the US, the UK and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

This quarter, companies around the globe prepared to exit Iran-related business in the wake of U.S. sanctions snap-back.  Meanwhile, OFAC provided a path to relief to designated Russian entities, extending several deadlines to allow for the continued divestment by their oligarch owners.  The U.S. took no new sanctions actions against North Korea as the two countries entered highly anticipated negotations surrounding denuclearization.  Finally, in its first enforcement action of the year, OFAC stressed the importance of empowering compliance personnel to prevent prohibited transactions.

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the US, the UK and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

The U.S. exit from the Iran Deal and the return of U.S. sanctions on Iran will impact companies located around the world, particularly if they conduct some part of their business in the U.S. Partner Philip Urofsky (Washington, D.C.-Litigation) and Of Counsel Danforth Newcomb (New York-Litigation) look at which companies will be most affected and how they could respond.

This quarter saw the announcement of sweeping new sanctions against Russia’s billionaire class and their corporate holdings, and included the Trump Administration’s first issuance of sanctions against Russia for meddling in the 2016 US presidential elections and other malign cyber activity.   These measures accompanied a general uptick in designations with respect to targets in North Korea, Venezuela, and Iran.  Notably, OFAC announced no enforcement actions in the first three months of the year.

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the US, the UK and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

The third quarter was headlined by the imposition of broad new US legislative sanctions against Russia, Iran, and North Korea.  The Trump Administration also acted unilaterally to significantly expand sanctions against both North Korea and Venezuela, while removing decades-old sanctions against Sudan.  OFAC continued its recent trend of pursuing enforcement actions again non-financial entities.

The first six months of the Trump Administration saw several notable developments for US sanctions, with particular implications for Russia and Iran.  The Administration also declared a shift in US policy toward Cuba.  Meanwhile, OFAC concluded a major enforcement effort against the Chinese firm ZTE, imposing the largest fine on record against a non-financial entity.

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the US, the UK and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

On June 16, 2017 during a speech in Miami, President Trump announced changes to US sanctions targeting Cuba. The speech announced two substantial changes to the previous administration’s Cuban sanctions regime: first, the new policy will restrict business transactions with any entity affiliated with the Cuban military and second, the new policy will restrict people-to-people travel to Cuba. The outlines of the policy were announced in a Presidential Memorandum; however, the true shape of these changes will depend on yet to be issued amendments to the Cuban Assets Control Regulations. For businesses looking to understand the impact the new policy will have, the devil will be in those details.

In recent years, government authorities have ever more rigorously pursued corruption. The number and magnitude of recent corruption investigations, particularly in Latin America, have raised questions about the implications for those doing business with entities ensnared in these investigations.

Partner Philip Urofsky (Washington, DC-Litigation) and associate R. Zach Torres-Fowler (New York-International Arbitration) co-authored an article, titled “The Firtash Case May Present Jeff Sessions’ Department of Justice With Its First Real Test on FCPA Enforcement,” that was published in Bloomberg BNA’s Criminal Law Reporter on March 1.

On November 8, 2016, Donald John Trump was elected the 45th President of the United States. Following fiery criticism of the Obama Administration’s sanctions policies, including the Iran deal, the lifting of substantial parts of the Cuban sanctions program, and the imposition of sanctions on Russia, it is likely that the new President will usher in a new era of US policy as it relates to Russian, Iran, and Cuban sanctions, although the nature, scope, and timing of such changes, not to mention Congressional views on certain of them, is still unknown.

On January 4, 2017, President-elect Trump announced that he intended to nominate Jay Clayton, a Mergers & Acquisitions partner at Sullivan & Cromwell LLP, to succeed Mary Jo White as Chair of the SEC.

Shearman & Sterling’s bi-annual Trends & Patterns report provides insightful analysis of recent enforcement trends and patterns in the US, the UK, and elsewhere as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

On April 5, 2016, the United States Department of Justice, Criminal Division, Fraud Section launched a one-year Pilot Program that invites companies to self-report potential violations of the Foreign Corrupt Practices Act (“FCPA”) to the FCPA Unit of the Justice Department in exchange for, among other things, up to a fifty percent reduction in criminal fines, declination and, where appropriate, settlements without a compliance monitor.

Although US and EU sanctions targeting Iran are not likely to be lifted before early 2016, there are a number of issues which US and EU-based financial institutions should be aware of in preparation for sanctions relief as a result of recent international agreement to lift sanctions in the Joint Comprehensive Plan of Action (the "JCPOA"). This client note highlights some of the main issues.

Recently, governmental authorities have pursued corruption investigations in Latin America with a vigor traditionally not seen. One potential result is a significant disruption of business. While there are inherent risks in executing business transactions with companies involved in these investigations, a number of precedents show that transactions can be done at acceptable levels of risk—if the proper steps are taken.

Recent enforcement actions by the Department of Justice and Securities and Exchange Commission have raised the profile of corruption in international sports and highlight unique FCPA compliance concerns.

On April 1, 2015, the United States Securities and Exchange Commission (“SEC” or “Commission”) filed its first enforcement action under Section 21F of the Securities Exchange Act of 1934 (“Exchange Act”) and Exchange Act Rule 21F 17 promulgated thereunder, which is intended to prevent issuers from taking steps that impede employees from reporting potential federal securities law violations to the SEC.

New sanctions targeting Russia have been implemented in the US, EU and Japan. Although the consequences of breaching the sanctions are severe, navigating the rules is not straightforward. Transactions and business lines will need to be reconsidered in light of the complex rules to which they may be subject. This client publication highlights the key issues and differences in the US, EU and Japanese rules that companies should understand.

The headline for the second quarter is, of course, the United States’ enforcement action against Bank BNP Paribas and its breathtaking penalty of $8.9 billion, tied to the allegedly intentional evasion of the US sanctions programs for Sudan and, to a lesser extent, Iran and Cuba. This settlement capped off a series of enforcement actions by US authorities against a variety of actors stemming from violations of all sizes.

Both the United States and the European Union have issued calibrated Ukraine-related sanctions as a direct response to the recent political upheaval in Ukraine.