U.S. government agencies issue advisory on high risks to U.S. companies engaged in Sudan

On May 23, 2022, the U.S. Departments of State, Treasury, Commerce, and Labor issued a joint advisory for U.S. companies operating in Sudan. The notice highlights the risks associated with doing business with Sudanese State-Owned Enterprises (“SOEs”), which have been effectively controlled by the Sudanese military since it took power on October 25, 2021. Among other things, the The Business Advisory highlights the following risk points:

  • gold industry: The advisory warns U.S. companies that the U.S. Department of Labor classifies gold from Sudan as a good produced by child labor and urges companies engaged in gold trading in Sudan or whose suppliers source in Sudan to adopt due diligence practices in line with the OECD Due Diligence Guidance. , Gold Supplement.
  • Sanctioned parties: The advisory also highlights that certain individuals and entities in Sudan have been designated under various sanctions authorities, including the recent designation of the Central Reserve Police under Executive Order 13818, and advises companies to employ a tailored approach. to comply with sanctions by developing and updating their sanctions compliance policies and procedures.
  • Weapons, military equipment and related activities: the Sudan Business Council points out that there is a United Nations embargo on the supply of arms and related materiel and any related training or technical assistance in relation to actors operating in Darfur, and that the embargo has been lifted implemented by the U.S. government in the International Traffic in Arms Regulations, which reflects a policy of denial of exports or imports of defense articles and services to or from Sudan, with some exceptions.
  • Human Rights Due Diligence: Finally, the Business Advisory Paper recommends that U.S. businesses conduct human rights due diligence based on publicly available guidance documents, including the UN Guiding Principles on Business and Human Rights. rights, and the U.S. Department of Labor platform – Comply Chain: Business Tools for Labor Compliance – providing information on due diligence measures specific to forced labor and child labor in supply chains.

Ashley C. Reynolds