The United States imposes a wide variety of economic sanctions on foreign individuals, foreign corporations, countries, terrorist organizations, and other entities. Sanctions are an increasingly important part of U.S. foreign policy and they play a significant role in the work of the United Nations, the European Union, and some other countries. Many sanctions do not give rise to litigation, but some do. Indeed, some sanctions legislation provides a cause of action, lifts foreign sovereign immunity, or otherwise makes it easier to sue sanctioned entities in the United States.
Sanctions related to terrorism generate a lot of litigation, so we have grouped the two topics together. Sanctions are imposed for many reasons other than terrorism, however, and some terrorism-related litigation is not a product of sanctions. Finally, sanctions are a controversial topic globally, in part because it is unclear that they are effective at changing behavior and in part because they often have negative consequences for marginalized communities in the countries subjected to sanctions, including countries like Afghanistan, Iran, and Venezuela.
The U.S. Takes the Fight Against Bribery to Foreign Officials
American companies, U.S. issuers, and persons in the United States have long been barred from bribing foreign officials under the Foreign Corrupt Practices Act (FCPA). But until December 2023, no U.S. law directly penalized those foreign officials for soliciting or taking bribes. With the enactment of the Foreign Extortion Prevention Act (FEPA), buried deep within…
Continue ReadingFederal Court Enjoins New Jersey Statute Sanctioning Russia
Following Russia’s full-scale invasion of Ukraine in 2022, New Jersey enacted a statute (the “Russia Act”) prohibiting state agencies and political subdivisions from doing business with entities engaged in “prohibited activities” in Russia. In Kyocera Document Sols. Am., Inc. v. Div. of Admin., district court judge Robert H. Kirsch held that the statute is preempted…
Continue ReadingSecond Circuit Hears Halkbank Oral Argument
On February 28, 2024, the Second Circuit heard oral argument in United States v. Turkiye Halk Bankasi A.S. From the judges’ questions—which admittedly came almost exclusively from Judge Bianco—the panel seems likely to hold that Halkbank, a Turkish state-owned bank, is not immune under federal common law from criminal prosecution for violating U.S. sanctions on Iran. That…
Continue ReadingIngrid (Wuerth) Brunk, Does Foreign Sovereign Immunity Apply to Sanctions on Central Banks?
Scott R. Anderson, What’s Happening with Afghanistan’s Assets?
Jamie L. Boucher, et al., The Potential Impact of Terrorism Lawsuits Under the Antiterrorism Act on Ordinary Corporate, Banking and Sovereign Enterprises