What BNPP Can Tell Us About Halkbank: Why Running Afoul Of U.S. Sanctions Regulations Is Bad For Business

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By Kemal Su

Mehmet Hakan Atilla, a high level banker at the Turkish state-controlled Halkbank, was convicted on January 3, 2018 of helping Iran circumvent international sanctions and gain access to billions in restricted petrodollar funds.[1]  Throughout the trial, witnesses described a conspiracy to avoid U.S.-imposed Iranian sanctions that was allegedly supported by the highest levels of the Iranian and Turkish governments.  Although six (6) other banks were named during the trial, Halkbank appeared to be at the center of the conspiracy.  While the guilty verdict applied only to Mr. Atilla, the fallout for Halkbank is only just beginning.  If the U.S. government finds that Halkbank engaged in wrongdoing, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) can impose a range of potentially debilitating penalties that will affect the future viability of the bank and may trigger a Turkish financial crisis.  In order to understand what actions the OFAC may take, it is useful to have a look at what happened when U.S. authorities investigated BNP Paribas SA (BNPP).

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Free CFIUS Webinar, Wednesday, Feb. 28, Noon to 1 p.m.

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West Legal Ed’s Federal Publications Seminars will host a free one-hour briefing on legislative and policy developments relating to the Committee on Foreign Investment in the United States (CFIUS).  CFIUS reviews proposed foreign investment in U.S. companies for potential national security concerns. U.S. companies that serve the federal government must stay abreast of how the Trump administration is implementing the CFIUS review process and how this process could change as Congress debates the first major CFIUS reform legislation in over a decade.

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Reminder: CLE Opportunities Thursday and Friday in Pinehurst

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Join top business lawyers and international law practitioners in Pinehurst for two days of North Carolina Bar Association CLE and networking.

Thursday kicks off at 8 a.m. with a three-hour ethics medley video replay, followed by the 2018 Business Law Institute, planned by the NCBA Business Law Section, in the afternoon.

On Friday, the 2018 North Carolina Bar Association Business Law and International Law & Practice Sections Joint Annual Meeting begins at 8 a.m.

With a total of 13 sessions, there is something for everyone. A February favorite, the agenda includes practice-oriented program, panels with experienced practitioners on crowdfunding and international transactions, the annual business law update and programs on ethics in transactional matters and attorney wellness.

Click on any of the links above to register.

Nemo Est Supra Leges

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By Jennifer Cory

The recent U.S. Immigration and Customs Enforcement nationwide I-9 Employment Eligibility Verification Audit of 7-Eleven stores reminds us that no one is above the law. In the early morning hours of Jan. 10, 2018, ICE reportedly visited 98 7-Eleven locations and made 21 arrests in what is being called the largest worksite compliance operation targeting an employer since President Trump took office.

The agency’s intent is clear as delivered by ICE Deputy Director Thomas D. Homan:

“Today’s actions send a strong message to U.S. businesses that hire and employ an illegal workforce: ICE will enforce
the law, and if you are found to be breaking the law, you will be held accountable. Businesses that hire illegal workers
are a pull factor for illegal immigration and we are working hard to remove this magnet. ICE will continue its efforts to
protect jobs for American workers by eliminating unfair competitive advantages for companies that exploit illegal
immigration.”

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International Law & Practice Section Reception with LL.M. Students

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By Jennifer D’Arcy Maher

For the past several years, members of the International Law and Practice Section have enjoyed meeting international Master of Laws (LL.M.) students from North Carolina law schools at a reception hosted by the Section. In the beautiful setting of the Bar Center in early fall, members have connected with LL.M.s such as

  • Young lawyers from the Japanese law firm of Nishimura & Asahi, which hosted the Section members who went on the Section’s exchange visit to Japan;
  • Students from Middle East and African countries where members’ companies are doing business; and
  • Students from countries where members have lived, worked, or traveled.

The conversations have resulted in follow-up meetings and invitations to Thanksgiving meals and other activities that help students appreciate Southern hospitality. The reception has also resulted in many students joining the Section as student members.

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Is Standard International Antitrust Enforcement Possible? The Virgin v. British Airways Case

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By Kemal Su

One of the most important functions of antitrust law is fighting against abuse of dominance or monopolization. Companies with high market shares and strong market power can exclude incumbents or potential entrants. Although national legislation and decisions of national authorities may differ, abusive behavior of a dominant firm in a given country should be deemed a violation of antitrust laws in all territories where the relevant company is dominant.

The near-similarity of antitrust laws throughout the world allows multinational companies to easily comply with the antitrust laws of countries in which they operate. However, this also generates a significant risk because such companies can face antitrust investigations in more than one country, due to a single decision or behavior.

Nonetheless, not only do market conditions or local strategies of the multinationals differ from one territory to another, so does antitrust enforcement. Those differences may stem from the willingness and determination of the antitrust authority to stop such abuses, market conditions due to the local competitors, the lack of relevant laws, or even implications on relations between countries.

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Want To Publish Your Article On the International Practice Section Blog? Here’s What You Need To Know

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Topics: We encourage relevant, timely articles on substantive cross-border legal issues and any others that may be of interest to the international legal community in North Carolina.

Length:  All articles are limited to 300-400 words. For articles exceeding this world limit, the author may:  1) edit the article into one article of 300-400 words, 2) serialize the article into two or more articles, or 3) include an abstract of the article as the blog post with author contact information for the reader.  The International Practice Section Blog Committee and the NCBA reserve the right to make final edits to the article before publication.

Process:  If you believe that your proposed article meets the topic and length requirements set out above, please submit it to [email protected] with “NCBA International Practice Section Article Submission” in the subject line.  A committee member will get back to you shortly with a publication decision and proposed publication date(s).

Thank you for your interest in publishing with us.  We look forward to working with you!