For all the latest news and comment in clinical negligence healthcare law
For all the latest news and comment in clinical negligence healthcare law
This collection looks at the latest news and comment on commercial contracting healthcare law. With the health and social care sector under…
For all the latest news and comment in employment and pensions healthcare law
For all the latest legal and regulatory news and comment in health technology
This collection contains DAC B eachcroft's latest report, The Route to Integrated Healthcare , which provides the first practical examples of how…
This collection looks at the latest strategic, commercial, regulatory and negligence legal and advisory news and comment in health and social care. …
For all the latest news and comment on employment and pensions law.
DAC Beachcroft Dublin specialises in insurance, professional indemnity, defendant personal injury, health, commercial litigation and employment work.…
For all the latest new and comment in tax law.
The GC Collective collection offers insight and comment for General Counsels (GCs) and in-house legal teams.
For the latest news and comment on Corporate, M&A and Equity Capital Markets.
Analysis, commentary and checklists on the legal and governance implications of Brexit on businesses operating in, and trading with, the UK
The Accountant's Liability Collection brings you topical news and insight of interest to accountants, actuaries, trustees and other financial…
Events and online training for the health and social care sector.
For the latest news and comment on banking and finance disputes.
DAC Beachcroft's LatAm Quarterly Newsletter discusses topical news and issues in Latin America
In response to client suggestions and requests, DAC Beachcroft's insurance sector flagship publication.
For all the latest legal and regulatory news and comment in health and social care integration
For all the latest news and comment in corporate regulatory healthcare law
Find advice, commentary and thought leadership on all aspects of Director's & Officer's Insurance; from contract formation through to complex…
This collection looks at the latest news, comment and development on the law affecting mental health services. The law affecting mental health…
Our market-leading Information Law team regularly publish articles and updates addressing the ever-evolving Information Law landscape.
This collection looks at our Safety, Health and Environment Team and the products and services they can provide. In the climate of increased…
The Insurance Act 2015 comes into force in August 2016 and will represent a significant change to insurance contract law in this country. This…
Legislative changes are bringing major changes to the Insurance landscape. This collection houses DAC Beachcroft's alerts on the pertinent issues.
For all the latest news and comment in clinical regulatory healthcare law
Organisations face ever-increasing expectations from Government, regulators, customers or service users, and other stakeholders, so scrutiny and…
For all the latest legal and regulatory news and comment in healthcare estates and facilities management
This collection addresses the full spectrum of cyber security and data risk management – the zeitgeist of our age.
We have acted for clients in the majority of significant product liability cases that have been decided in the UK over the last 35 years. Our product…
Considering the future landscapes of our cities
The European General Data Protection Regulation (GDPR) came into force on 25 May 2016. A rewrite of European data protection law, the GDPR imposes…
Considering the future of housing
For the latest news and comment on public procurement law.
Welcome to the Construction Risks collection. This space is used to report upon issues of interest to those who seek to allocate, manage and reduce…
Technology, brands and intellectual capital are key assets for any successful business. Our intellectual property (IP) team are experts at helping…
Considering the future of retail
The Insurance Market Conditions and Trends report is DAC Beachcroft's insurance sector flagship publication. Now in its tenth year, the report…
The Solicitors' Risk Collection addresses issues and developments affecting legal practitioners, and the professional indemnity insurers of legal…
Published On: 4 February 2016
On 31 December 2015, the USA's Office of Foreign Assets Control (OFAC) issued in summary form the Cyber-Related Sanctions Regulations, 31 CFR Part 578, ("the Cyber Sanctions Regulations").
OFAC is responsible for managing sanctions arising from US foreign policy goals. It has traditionally sought to sanction the financial services sector, but is now turning to cyber threats that threaten the USA, such as hacking and corporate espionage.
OFAC publishes the Specially Designated Nationals (SDN) List. The SDN includes individuals, aircraft, ships, as well as corporate entities, with which American citizens and permanent residents of the USA are prohibited from doing business.
The scope of OFAC's work reaches beyond the USA's borders and can impact upon international transactions. And as cyber-attacks often herald from foreign countries, it is inevitable that this will have an impact on foreign companies as well as US companies.
OFAC has yet to publish the detailed regulations and has not yet designated any individual for Cyber Sanctions. But the summary gives a useful indication as to the direction of travel and any company with operations in the US, trades with US dollars, or who does business in the US will want to pay attention to how they can avoid directly, or indirectly assisting individuals, or entities on the SDN list
OFAC has indicated that more substantial regulations will follow, but the documents provided so far by OFAC give a strong indication of how OFAC intends to regulate and impose sanctions in relation to malicious cyber activities.
Although the definition of "Cyber Activities" has yet to decided, OFAC has in its Frequently Asked Questions section, indicated that the public should be aware that the Cyber Sanctions Regulations are intended to include:
“Deliberate activities accomplished through unauthorized access to a computer system, including by remote access; circumventing one or more protection measures, including by bypassing a firewall; or compromising the security of hardware or software in the supply chain.”
The Cyber Sanction includes the following guidance as to what kinds of "support" activities it will be seeking to police:
"Any property, tangible or intangible, including but not limited to currency, financial instruments, securities, or any other transmission of value; weapons or related materiel; chemical or biological agents; explosives; false documentation or identification; communications equipment; computers; electronic or other devices or equipment; technologies; lodging; safe houses; facilities; vehicles or other means of transportation; or goods."
It is too soon to be able to provide detailed commentary on what the regulations will mean for UK companies or other companies with a parent or an associate group company doing business in the USA.
OFAC regulations have, in the past, had a wide ranging impact on international transactions. As the intention is to sanction hackers and those deemed to be involved in corporate espionage, companies will need to consider compliance strategy. The summary of the Cyber Sanction Regulations underlines the need for companies to conduct adequate due diligence on all new customers and clients in order to ensure they are not on the SDN. Companies will need to consider the scope of "financial, material, or technological support", and whether they need to change their operations and internal security to ensure they have systems that ensure they avoid transactions with those listed on the SDN.
We will provide a further update when the regulations have been published in full, but this is yet another area where US policy is set to affect international trade.