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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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President Biden signed H.R. 815 (now Public Law No. 118-50) on April 24, 2024, which provides additional foreign aid while also bolstering U.S. national security and enhancing sanctions and export control laws with the enactment of provisions that:

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On April 24, 2024, President Biden signed into law a broad national security package, <a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text?s=2&amp;r=1&amp;q=%7B%22search%22%3A%22hr815%22%7D">H.R. 815</a> (Public Law No. 118-50), which included the Israel Security Supplemental Appropriations Act, 2024, the Ukraine Security Supplemental Appropriations Act, 2024, the Indo-Pacific Security Supplemental Appropriations Act, 2024, the 21st Century Peace through Strength Act, the FEND off Fentanyl Act, and the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act. This new law is organized into 20 separate Divisions A-T, and not only provides substantial aid to Ukraine, Israel, and Indo-Pacific security for Taiwan but also encompasses extensive amendments to U.S. sanctions and export control laws.

Some of the most important legislative provisions are discussed below.

U.S. Sanctions Enforcement Period Is Extended to Ten Years

The Act (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#HF13641BB6FF042DD8644F5D5EDD58D06">Division E, Title I, Subtitle B, Sec. 311</a>) extends the statute of limitations for U.S. sanctions violations, doubling the enforcement period from five to ten years. Under the International Emergency Economic Powers Act (IEEPA) and the Trading With the Enemy Act (TWEA), enforcement actions must now be initiated within a decade of the violation. This amendment underscores the need for businesses to adopt and amend compliance strategies, requiring enhanced recordkeeping and preparation for potential audits covering transactions dating as far back as ten years. See Thompson Hine’s <a href="https://www.thompsonhinesmartrade.com/2024/05/new-legislation-extends-u-s-sanctions-enforcement-period-to-ten-years/">May 1, 2024 Update</a> for further details.

Additional Sanctions on Russia to Align with UK and EU Measures

The Act (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#H30EFEC941B70400C8D674A045C0F6962">Division G, Sec. 1</a>) requires the president to submit a report to Congress within 90 days, identifying foreign persons subject to European Union (EU) and United Kingdom (UK) sanctions, as well as those meeting criteria for U.S. sanctions related to Russian aggression. The president is then authorized to impose sanctions on persons not already under U.S. sanctions as outlined in the report. This provision is crucial as it ensures that U.S. sanctions align with international efforts, particularly with EU and UK measures, enhancing the effectiveness and consistency of the global response to Russian aggression.

Seizure of Russian Sovereign Assets to Rebuild Ukraine

The “Rebuilding Economic Prosperity and Opportunity for Ukrainians Act” or “REPO for Ukrainians Act” (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#H20880C98462547838F0704B970382442">Division F</a>) provides authority to the president to seize Russian sovereign assets frozen in U.S. financial institutions and allocate them to Ukraine for reconstruction efforts. Below are key highlights of the Act:

Additional Sanctions and Export Controls on Iran

Sanctions Aimed at Hamas and Other Terrorist Groups

The "Hamas and Other Palestinian Terrorist Groups International Financing Prevention Act" (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#H175CB5DF2D1644C4BC2154575C40BDE2">Division M</a>) establishes comprehensive measures aimed at curtailing the financial and operational capabilities of designated Palestinian terrorist organizations through a series of targeted sanctions and reporting requirements.

The “Protecting Americans from Foreign Adversary Controlled Applications Act” (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#HAF5E8313F92B4B47B3F9E2542C7499B3">Division H</a>) includes the widely discussed ban on the Chinese-owned TikTok. This Act targets foreign adversary controlled applications, particularly from China, Iran, North Korea, and Russia, making it illegal within the U.S. to distribute, maintain, or update such applications through online stores or internet hosting services. Specifically, the Act applies to entities like ByteDance and its subsidiary, TikTok, and extends to any company with over 1,000,000 monthly active users that allows user-generated content and is deemed a national security threat after a review process by the president. Set to take effect in January 2025 for ByteDance and TikTok, the law imposes penalties for violations, including potential civil penalties enforced by the Department of Justice based on user numbers within the U.S. See Thompson Hine’s <a href="https://www.thompsonhinesmartrade.com/2024/04/president-biden-signs-law-that-includes-provisions-to-ban-tiktok-from-the-united-states/">April 30, 2024 Update</a> for more details.

The "Protecting Americans' Data from Foreign Adversaries Act of 2024" (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#H98C024B0AC6B453B915C47821338C31D">Division I</a>) enacts stringent prohibitions on “data brokers” to sell, license, rent, trade, transfer, release, disclose, provide access to, or otherwise make available “personally identifiable sensitive data” of a United States individual to (1) any foreign adversary country (China, Iran, North Korea, or Russia); or (2) any entity that is controlled by a foreign adversary (entities 20% or more owned by entities organized under the laws of or headquartered in the listed countries). The Act defines crucial terms including "data broker," "foreign adversary country," "personally identifiable sensitive data," and "sensitive data," detailing various types of sensitive personal information. The legislation is set to take effect 60 days after enactment of the Act.

The "FEND Off Fentanyl Act" (<a href="https://www.congress.gov/bill/118th-congress/house-bill/815/text#H9BAAC8C05204461A894DCBCE0223B9C7">Division E</a>) strengthens the U.S. approach to the fentanyl crisis, recognized as a major national security threat causing extensive overdose deaths. The Act authorizes the president to impose sanctions on individuals and entities determined to be knowingly involved in the significant trafficking of fentanyl, precursor chemicals, or related opioids, or otherwise knowingly involved with the activities of a transnational criminal organization (TCO) involved in illicit narcotics trafficking. It also grants the Financial Crimes Enforcement Network (FinCEN) authority to enforce stringent anti-money laundering measures on U.S. financial institutions.

The new law significantly expands the U.S. legal framework on sanctions and export controls and increases their complexity. The law’s broad scope emphasizes the need for comprehensive due diligence and robust supply chain oversight.

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

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U.S. Aid Package for Ukraine, Israel and the Indo-Pacific Incorporates Extensive Sanctions and Export Control Reforms

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