The Bureau of Industry and Security announced June 20 a final determination prohibiting Kaspersky Lab Inc., the U.S. subsidiary of a Russia-based anti-virus software and cybersecurity company, as well as its affiliates, subsidiaries, and parent companies, from directly or indirectly providing anti-virus software and cybersecurity products or services in the U.S. or to U.S. persons.
As a result, Kaspersky will generally no longer be able to, among other activities, sell its software within the U.S. or provide updates to software already in use. However, Kaspersky will be allowed to continue certain operations in the U.S., including providing anti-virus signature updates and codebase updates, through Sept. 28.
BIS states that this action is the first of its kind and the first final determination issued by BIS’s Office of Information and Communications Technology and Services, whose mission is to investigate whether certain ICTS transactions in the U.S. pose an undue or unacceptable national security risk.
Further, effective June 24 BIS has added three entities (AO Kaspersky Lab and OOO Kaspersky Group (Russia) and Kaspersky Labs Limited (United Kingdom)) to the Entity List for their cooperation with Russian military and intelligence authorities in support of the Russian government’s cyber intelligence objectives. Parties on the Entity List are subject to tougher individual export licensing requirements and policies.
BIS states that all of these actions are the result of an investigation finding that Kaspersky’s continued operations in the U.S. presented a national security risk – due to the Russian government’s offensive cyber capabilities and capacity to influence or direct Kaspersky’s operations – that could not be addressed through mitigation measures short of a total prohibition.
Finally, the Treasury Department’s Office of Foreign Assets Control announced June 21 economic sanctions on 12 individuals in executive and senior leadership roles at Kaspersky. As a result, all property and interests in property of these persons that are in the U.S. or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked.
Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the U.S. that involve any property or interests in property of designated or otherwise blocked persons. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
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