Law Commons^™

Considering Sanctions Compliance In Light Of Ucc 4a, Michael Zytnick, Alaina Gimbert

Michigan Business & Entrepreneurial Law Review

As part of a bank’s financial crime compliance program, it is increasingly common to screen and halt the processing of a payment order for compliance investigation where reference is made to a potential, but unconfirmed, target of United States economic sanctions. This essay discusses challenges under Article 4A of the Uniform Commercial Code concerning the timing of such an investigation and the creation of potential liability where a bank wrongly accepts by execution a previously halted payment order received from a sender following five funds transfer business days after the relevant execution date or payment date of that order. In …

Ending Corporate Anonymity: Beneficial Ownership, Sanctions Evasion, And What The United Nations Should Do About It, Vineet Chandra

Michigan Journal of International Law

In the vast majority of jurisdictions around the world, there is a generous array of corporate forms available to persons and companies looking to do business. These entities come with varying degrees of regulation regarding how much information about the businesses’ principal owners must be disclosed at the time of registration and how much of that information is subsequently available to the public. There is little policy harmonization around the world on this matter. Dictators and despots have long taken advantage of this unintended identity shield to evade sanctions which target them; in July of 2019, the Center for Advanced …

Strengthening Sanctions: Solutions To Curtail The Evasion Of International Economic Sanctions Through The Use Of Cryptocurrency, Emma K. Macfarlane

Michigan Journal of International Law

Despite the ubiquity of cryptocurrency, no international uniform regulatory system exists. State-by-state regulation of cryptocurrencies has problematic implications for cross-border investigations and predictability in application. Moreover, this regulatory framework leaves open opportunities for actors worldwide to violate international sanctions with impunity.

This Note posits that an international regulatory framework is necessary to combat the evasion of financial sanctions on practical and theoretical grounds. It further argues that the best way to structure this new framework is through the enactment of a new multilateral treaty. A formal international regulatory mechanism for cryptocurrencies would have numerous benefits, foremost among them limiting the …

Understanding National Remedies And The Principle Of National Procedural Autonomy: A Constitutional Approach, Daniel H. Halberstam

Articles

This article provides a constitutionally grounded understanding of the vexing principle of ‘national procedural autonomy’ that haunts the vindication of EU law in national court. After identifying tensions and confusion in the debate surrounding this purported principle of ‘autonomy’, the Article turns to the foundational text and structure of Union law to reconstruct the proper constitutional basis for deploying or supplanting national procedures and remedies. It further argues that much of the case law of the Court of Justice of the European Union may be considered through the lens of ‘prudential avoidance’, ie the decision to avoid difficult constitutional questions …

Targeting Poverty In The Courts: Improving The Measurement Of Ability To Pay Fines, Meghan M. O'Neil, J.J. Prescott

Articles

Ability-to-pay determinations are essential when governments use money-based alternative sanctions, like fines, to enforce laws. One longstanding difficulty in the U.S. has been the extreme lack of guidance on how courts are to determine a litigant’s ability to pay. The result has been a seat-of-the-pants approach that is inefficient and inaccurate, and, as a consequence, very socially costly. Fortunately, online platform technology presents a promising avenue for reform. In particular, platform technology offers the potential to increase litigant access, reduce costs, and ensure consistent and fair treatment—all of which should lead to more accurate sanctions. We use interviews, surveys, and …

Understanding Administrative Sanctioning As Corrective Justice, Eithan Y. Kidron

University of Michigan Journal of Law Reform

When should a regulator prefer criminal sanctions over administrative sanctions? What procedural protections should apply if a process is labeled civil but the sanctions are, in fact, criminal in type? And can the state justifiably conduct parallel proceedings for punitive sanctions against the same person or entity for the same conduct?

Throughout the years, judges and scholars alike have tried to understand and classify administrative sanctioning. Common to all of these conceptions is their failure to provide a complete normative framework for this unique body of law, which in turn makes it difficult to identify its practical limits and to …

Contemporary Practice Of The United States Relating To International Law, Kristina Daugirdas, Julian Davis Mortenson

Articles

In this section: Congress Enacts Sanctions Legislation Targeting Russia • United States and Qatar Sign Memorandum of Understanding over Terrorism Financing • Trump Reverses Certain Steps Toward Normalizing Relations with Cuba • United States Announces Plans to Withdraw from Paris Agreement on Climate Change • President Trump Issues Trade-Related Executive Orders and Memoranda • United States, Russia, and Jordan Sign Limited Ceasefire for Syria • Trump Administration Recertifies Iranian Compliance with JCPOA Notwithstanding Increasing Concern with Iranian Behavior

A Modest Memo, Yxta Maya Murray

Michigan Journal of Race and Law

A Modest Memo is a satire in the form of a legal memo written for President-Elect Donald Trump circa November 2016. It counsels Mr. Trump to obtain Mexican funding for a United States-Mexico “Wall” via United Nations Security Council sanctions. These sanctions would freeze remittances (that is, “hold them hostage”) until Mexican President Enrique Peña Nieto wired the United States sufficient monies for construction. The memo, which is entirely the product of my imagination and legal study, contemplates one of the many possible worst case scenarios threatened by the Trump presidency. Through the arts of law and literature, I aim …

Pretextual Sanctions, Contempt, And The Practical Limits Of Bearden-Based Debtors' Prison Litigation, Colin Reingold

Michigan Journal of Race and Law

At the time of this writing, recent events in Ferguson, Baltimore, New York City, and elsewhere have triggered quite justified social outrage at debtors’ prisons. Our country’s state and city courts keep scores of indigent people in jail for the crime of being poor, despite the Supreme Court’s clear prohibition on the practice. Skilled litigators and their journalist allies have seized on the moment to win victories in court and in the public eye, which prevent unconscionable bond and probation practices and try to reduce our burgeoning jail populations. Lost in the uproar, though, are the many ways that a …

Human Trafficking In Southeast Asia: Uncovering The Dynamics Of State Commitment And Compliance, Catherine Renshaw

Michigan Journal of International Law

In Part I of this Article, Renshaw explains some of the current theories about how and why states come to adopt human rights norms and then translates these norms into laws and policies. In Part II, she sets out the contours of the TVPA and the global regime with which it coexists, the United Nations Palermo Protocol. Part III considers how ASEAN States have responded to the global anti-trafficking regime. Part IV explores how ASEAN states perceive the issue of human trafficking. Part V describes how ASEAN states have responded to the threat of sanctions under the TVPA. Part VI …

Contemporary Practice Of The United States Relating To International Law, Kristina Daugirdas, Julian Davis Mortenson

Articles

In this section: • United States Adjusts Aid to Egypt in Light of Legal and Political Developments • P51 and Iran Reach Agreement on Iranian Nuclear Program; Obama Administration Seeks Congressional Approval • United States Authorizes New Sanctions Program Aimed at Foreign Perpetrators ofCyberattacks and Cyberexploits • Normalization of Cuba-U.S. Relations Continues • U.S. Navy Continues Freedom of Navigation and Overflight Missions in the South China Sea Despite China’s “Island-Building” Campaign • U.S. Department of Justice Charges Leaders of FIFA, Affiliate Soccer Organizations, and Sports Marketing Companies in 47-Count Indictment

Contemporary Practice Of The United States Relating To International Law, Kristina Daugirdas, Julian Davis Mortenson

Articles

In this section: • United States Condemns Russia’s Use of Force in Ukraine and Attempted Annexation of Crimea • In Wake of Espionage Revelations, United States Declines to Reach Comprehensive Intelligence Agreement with Germany • United States Defends United Nations’ Immunity in Haitian Cholera Case • French Bank Pleads Guilty to Criminal Violations of U.S. Sanctions Laws • D.C. Circuit Strikes down Administrative Order Requiring Divestment by Foreign-Owned Corporation • United States Adopts New Land Mine Policy • United States Claims That Russia Has Violated the INF Treaty

Contemporary Practice Of The United States Relating To International Law, Kristina Daugirdas, Julian Davis Mortenson

Articles

• Progress Is Made Implementing U.S.-Russia Framework for Eliminating Syrian Chemical Weapons • United States Advocates for Syrian Peace Conference • United States Extends Deadline for Signing of Bilateral Security Agreement with Afghanistan • China Announces New Air Defense Identification Zone over East China Sea, Prompting U.S. Response • United States and Six Other States Reach Interim Agreement on Iranian Nuclear Program

Security Council Resolution 1887 And The Quest For Nuclear Disarmament, Usman Ahmed, Raghav Thapar

Michigan Journal of International Law

Nuclear weapons pose an increased international threat to security in the modem era. Cheap transportation and the opening of national borders for trade have made it easy for nuclear materials to cross national boundaries. Informal networks have sprouted up, facilitating the proliferation and exchange of nuclear materials and the technology required to turn those materials into weapons. Advances in technology have made it easier to enrich uranium, instilling concerns of increased nuclear weapons proliferation. These changes in technology, the development of informal nuclear networks, and lax security in safeguarding weapons by states such as Russia and Pakistan have fueled global …

Spoliation Of Electronic Evidence: Sanctions Versus Advocacy, Charles W. Adams

Michigan Telecommunications & Technology Law Review

This Article proposes that courts should refrain from imposing adverse inference jury instructions as sanctions for the spoliation of evidence. This proposal bears some similarity to the approach taken twenty years ago by the 1993 amendments to Rule 11, which constrained courts' ability to sanction. Instead of imposing an adverse jury instruction as a sanction for spoliation of evidence, courts should allow evidence of spoliation to be admitted at trial if a reasonable jury could find that spoliation had occurred and if the spoliation was relevant to a material issue. If a court allows the introduction of evidence of spoliation …

Federal Employer Sanctions As Immigration Federalism, Darcy M. Pottle

Michigan Journal of Race and Law

For low-skilled workers in much of the world, U.S. admission policies make illegal immigration the most viable means of entering the country. Low average schooling, which disqualifies many potential immigrants from employment-based visas, and long queues affecting family preference immigration from high-traffic countries, make the admission criteria outlined in the U.S. Immigration and Nationality Act (INA) prohibitive for most would-be immigrants to the United States. Perhaps due to this failure of immediate legal avenues, many immigrants enter the country illegally. Though many eventually gain legal status, in the meantime they live and work in the United States without documentation. "Illegal …

Do Liquidated Damages Encourage Breach? A Psychological Experiment, Tess Wilkinson-Ryan

Michigan Law Review

This Article offers experimental evidence that parties are more willing to exploit efficient-breach opportunities when the contract in question includes a liquidated-damages clause. Economists claim that the theory of efficient breach allows us to predict when parties will choose to breach a contract if the legal remedy for breach is expectation damages. However, the economic assumption of rational wealth-maximizing actors fails to capture important, shared, nonmonetary values and incentives that shape behavior in predictable ways. When interpersonal obligations are informal or underspecified, people act in accordance with shared community norms, like the moral norm of keeping promises. However, when sanctions …

The Legal Arizona Workers Act And Preemption Doctrine, Sandra J. Durkin

Michigan Journal of Race and Law

in recent years, a spate of states passed laws regulating the employment of undocumented immigrants. This Note argues that laws that impose civil sanctions on employers that hire undocumented immigrants are preempted by both federal immigration law and federal labor law. The Note focuses specifically on the Legal Arizona Workers Act because it went into effect in 2008 and has amassed more than two years' worth of data on its enforcement, and because it is touted as the harshest state anti-immigration measure to date. This Note examines the law's impacts and argues that practitioners nationwide should challenge the Legal Arizona …

Coordinating Sanctions In Torts, Kyle D. Logue

Articles

This Article begins with the standard Law and Economics account of tort law as a regulatory tool or system of deterrence, that is, as a means of giving regulated parties the optimal ex ante incentives to minimize the costs of accidents. Building on this fairly standard (albeit not universally accepted) picture of tort law, the Article asks the question how tort law should adjust, if at all, to coordinate with already existing non-tort systems of regulation. Thus, if a particular activity is already subject to extensive agency-based regulation (whether in the form of command-and-control requirements or in the form of …

In Search Of Justice: Increasing The Risk Of Business With State Sponsors Of Terror, Gabriel C. Lajeunesse

Michigan Law Review First Impressions

If the aims of tort law are deterrence, compensation, and provision of equitable distribution of risks, U.S. anti-terrorism laws have been margin-ally effective at best. Though Congress has passed legislation providing causes of action to U.S. victims of terrorism, compensation of victims is often difficult and terrorists are rarely deterred. Attempts to provide such recourse include the Antiterrorism Act of 1991 ("ATA"), the Antiterrorism and Effective Death Penalty Act of 1996 ("AEDPA"), and the Flatow Amendment to the Foreign Sovereign Immunities Act ("FSIA"). These attempts, however, are not enough.

How To Think About Ppms (And Climate Change), Donald H. Regan

Book Chapters

The European Commission has apparently backed off from a proposal to tax imported goods produced by methods that generate excessive greenhouse gas emissions. So the issue of whether such a tax would be legal under the WTO has become slightly less urgent than it recently appeared. But Pascal Lamy the Director-General of the WTO still thought the possibility of some countries imposing emission-based trade restrictions was worth mentioning prominently in his speech to the Trade Ministers Conference in conjunction with the Bali Conference on climate change after Kyoto. And at that same conference, an official of the European Commission may …

The United Nations, The European Union, And The King Of Sweden: Economic Sanctions And Individual Rights In A Plural World Order, Daniel Halberstam, Eric Stein

Articles

In the last decade, economic sanctions have become a major instrumentality of the UN Security Council in the struggle against terrorism and lawless violence endangering peace. It is not surprising that innocents would be ensnarled, along with culprits, in the nets of the so-called "smart" or "targeted" sanctions, which are directed against named individuals and groups (as opposed to delinquent States). In such rare cases, as the individual concerned searches for a legal remedy, significant issues of fundamental human rights may arise at the levels of the international, regional, and national legal orders. This essay explores these issues. After examining …

Uncertainty Revisited: Legal Prediction And Legal Postdiction, Ehud Guttel, Alon Harel

Michigan Law Review

Legal scholarship, following rational-choice theory, has traditionally treated uncertainty as a single category. A large body of experimental studies, however, has established that individuals treat guesses concerning the future differently than guesses concerning the past. Even where objective probabilities and payoffs are identical, individuals are much more willing to predict a future event (and are more confident in the accuracy of their predictions) than they are willing to postdict a past event (and are also less confident in the accuracy of their postdiction). For example, individuals are more willing to bet on the results of a future die toss than …

Are Eu Trade Sanctions On Burma Compatible With Wto Law?, Robert L. Howse, Jared M. Genser

Michigan Journal of International Law

This Article will explore the European Union's approach to Burma. The European Union, until recently, has implemented quite limited trade sanctions against the Burmese junta. According to the most recent figures, E.U. countries still import €306 million ($454 million) of commodities and products, ninety-five percent of which are textiles, timber, gems, and precious metals. However, the Common Position of November 19, 2007, strengthens considerably E.U. measures against the Burmese regime and contains a ban on the importation of these goods from Burma. Further, the Common Position requires E.U. countries to prohibit intentional and knowing "participation" in activities that "directly or …

The Corporate Monitor: The New Corporate Czar?, Vikramaditya Khanna, Timothy L. Dickinson

Michigan Law Review

Following the recent spate of corporate scandals, government enforcement authorities have increasingly relied upon corporate monitors to help ensure law compliance and reduce the number of future violations. These monitors also permit enforcement authorities, such as the Securities & Exchange Commission and others, to leverage their enforcement resources in overseeing corporate behavior. However there are few descriptive or normative analyses of the role and scope of corporate monitors. This paper provides such an analysis. After sketching out the historical development of corporate monitors, the paper examines the most common features of the current set of monitor appointments supplemented by interviews …

Averting Catastrophe: Why The Nuclear Nonproliferation Treaty Is Losing Its Deterrence Capacity And How To Restore It, Orde F. Kittrie

Michigan Journal of International Law

This Article analyzes from a legal perspective the responses of the international community, and especially the Security Council, to the examples of nuclear proliferation outlined in this Article and the impact of those responses on the vitality of the nuclear nonproliferation regime. In doing so, the Article identifies and focuses on two key, interrelated themes. The first theme is the effect on these responses of the NPT's remarkably weak mechanisms for detecting violations of NPT obligations. The second theme is the frequent strong reluctance of the international community, including the Security Council, to impose serious sanctions for proliferation activity when …

The United States As Global Sheriff: Using Unilateral Sanctions To Combat Human Trafficking, Janie Chuang

Michigan Journal of International Law

By situating the U.S. rise to dominance in historical and political context, this Article underscores the significance of U.S. unilateralism for international anti-trafficking law and policy.

International Treaty Enforcement As A Public Good: Institutional Deterrent Sanctions In International Environmental Agreements, Tseming Yang

Michigan Journal of International Law

This Article approaches the issues through the lens of two general questions. First, what are the functions of treaty enforcement and institutional deterrent sanctions? Second, what are the obstacles to the effective deployment of institutional deterrent sanctions in response to noncompliance? This Article elaborates on the instrumental purposes of enforcement as well as its independent normative function. Much of the analysis follows the recent stream of works that combines both international law and international relations theory. These works offer a rich understanding of the conduct of states and the functioning of international legal regimes.

The United Nations Security Council's Quest For Effectiveness, Emilio J. Cárdenas

Michigan Journal of International Law

The terrorist attacks of September 11, 2001, on New York's World Trade Center Towers and Washington's Pentagon, instantly refocused the United Nations' attention on the issue of international terrorism. The Security Council (Council) responded immediately: first, on September 12, 2001, with an unequivocal condemnation of the attacks, contained in Resolution 1368 (2001), and second, on September 28, 2001, with the enactment of Resolution 1373 (2001), which, under Chapter VII of the Charter, mandated that all Member States take specific actions to combat international terrorism. Terrorism was rightly understood to be "a threat to international peace and security."

The Problems With Scorecards: How (And How Not) To Measure The Cost-Effectiveness Of Economic Sanctions, Richard W. Parker

Michigan Journal of International Law

This Article looks "beneath the bridge" of sanctions law and policy to investigate these foundational questions. Part I will look briefly behind the currently prevailing estimate for the direct economic cost of high foreign policy export sanctions for the U.S. economy. It will demonstrate that the most widely reported aggregate cost estimate of $15-20 billion per year and 200,000 U.S. jobs lost is unsubstantiated. Moreover, the evidence is clear that environmental trade sanctions, i.e., import restrictions deployed for environmental purposes, have cost U.S. companies and workers virtually nothing. Trade sanctions may impose very significant costs on individual companies, and these …