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  • President Trump issues Executive Order delegating sanctions implementation authority; OFAC issues new CAATSA- Russia-related FAQ

    Financial Crimes

    On September 20, President Trump announced the issuance of Executive Order 13849 (E.O. 13849), “Authorizing the Implementation of Certain Sanctions Set Forth in the Countering America’s Adversaries Through Sanctions Act (CAATSA),” pursuant to national emergencies previously declared in Executive Orders 13660, 13694, and 13757. E.O. 13849 grants authority to the Secretary of the Treasury to take certain actions to implement the sanctions against identified persons, including the promulgation of regulations. Among other things, E.O. 13849 prohibits: (i) any U.S. financial institution from making loans or extending credits to sanctioned persons “totaling more than $10,000,000 in any 12-month period, unless the person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities”; (ii) any foreign exchange transactions, subject to U.S. jurisdiction, in which the sanctioned person has any interest; and (iii) transfers of credit or payments between, by, or through financial institutions for the benefit of a sanctioned person subject to U.S. jurisdiction. E.O. 13849 further describes the actions that can be taken to implement the sanctions.

    In response to E.O. 13849, the U.S. Treasury Department’s Office of Foreign Assets Control published a new CAATSA- Russia-related FAQ providing additional clarifying information.

    Find continuing InfoBytes covered on CAATSA-related sanctions here.

    Financial Crimes Department of Treasury OFAC CAATSA Russia Executive Order

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  • Departments of Treasury, State, and Homeland Security issue joint advisory warning businesses of North Korean sanctions evasion tactics

    Financial Crimes

    On July 23, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), in conjunction with the Department of State and the Department of Homeland Security, issued an advisory to warn businesses—including manufacturers, buyers, and service providers—of the potential risks that may result from sanctions evasion tactics used by North Korea across supply chains. The advisory also provides assistance for businesses complying with Title III of the Countering America’s Adversaries Through Sanctions Act of 2017 with respect to North Korean sanctions. According to the advisory, the U.S. government “is focusing its disruption efforts on North Korean citizens or nationals whose labor generates revenue for the North Korean government.” Specifically, the advisory warns businesses to examine their entire supply chains and adopt appropriate, well-documented due diligence best practices, which “may be considered mitigating factors when the U.S. government determines the appropriate enforcement response.” The advisory also outlines penalties for violations of sanctions and enforcement actions.

    See here for previous InfoBytes coverage on North Korea sanctions.

    Financial Crimes Department of Treasury Department of State Department of Homeland Security Sanctions CAATSA North Korea OFAC

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  • OFAC sanctions Russian entities and individuals for cyber activities connected to FSB

    Financial Crimes

    On June 11, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced its decision to sanction five Russian entities and three Russian individuals connected to Russia’s Federal Security Service (FSB), pursuant to Section 244 of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) and Executive Order 13694. The sanctions target individuals and entities who, through “malign and destabilizing cyber activities,” have provided material and technological support to the FSB. Pursuant to OFAC’s sanctions, all property and interests in property of the designated persons within U.S. jurisdiction are blocked, and U.S. persons are “generally prohibited” from participating in transactions with these individuals and entities. As part of the announcement, Treasury Secretary Steven Mnuchin stated that “The United States is committed to aggressively targeting any entity or individual working at the direction of the FSB whose work threatens the United States and will continue to utilize our sanctions authorities, including those provided under CAATSA, to counter the constantly evolving threats emanating from Russia.”

    Visit here for additional InfoBytes coverage on Russian sanctions.

    Financial Crimes OFAC Russia Sanctions International CAATSA

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  • Treasury issues general license to extend wind-down period for sanctioned Russian aluminum producer

    Financial Crimes

    On April 23, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License 14 (GL 14) to extend the grace period for specified wind-down activities involving a Russian aluminum producer sanctioned earlier this month. As previously covered in InfoBytes here, the April 6 sanctions—issued pursuant to the Countering America’s Adversaries Through Sanctions Act of 2017—allowed U.S. persons until May 7 to wind down operations involving identified blocked persons. According to Treasury’s press release, GL 14’s new October 23 deadline provides Treasury time to consider the aluminum producer’s petition for delisting given the impact the April 6 sanctions have had on U.S. partners and allies. Additionally, Treasury stated that “OFAC will not impose secondary sanctions on non-U.S. persons for engaging in the same activity involving [the aluminum producer] or its subsidiaries that General License 14 authorizes U.S. persons to engage in.”

    The same day, OFAC also issued an amended General License 12A to reflect the authorization in GL 14, and released several new FAQs addressing authorizations and limitations under GL 14.

    Visit here for additional InfoBytes coverage on Ukraine/Russian sanctions.

    Financial Crimes OFAC Department of Treasury Sanctions Russia Ukraine CAATSA

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  • OFAC sanctions Russian oligarchs and government officials; releases new general licenses and updated FAQs

    Financial Crimes

    On April 6, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced its decision to sanction seven Russian oligarchs along with 12 companies they own or control, 17 senior Russian government officials, and a state-owned Russian weapons trading company and its Russian bank subsidiary, pursuant to the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) and Executive Orders 13661, 13662, and 13582. In a foreign policy statement released the same day, President Trump explained that the identified persons placed on the Specially Designated Nationals (SDNs) and Blocked Persons List engaged in actions that have reportedly contributed to “advancing Russia’s malign activities,” including (i) profiting from “Russia's destabilizing activities”; (ii) election meddling; (iii) undermining U.S. cybersecurity; (iv) engaging in weapons proliferation; (v) continuing to occupy Crimea; (vi) instigating violence in eastern Ukraine; and (vii) providing military equipment and support for the Government of Syria's continued attacks against Syrian citizens. Pursuant to OFAC’s sanctions, all property or interests in property of the designated persons along with any other entity owned 50 percent or more by one or more designated persons that is within U.S. jurisdiction are blocked, and U.S. persons are “generally prohibited” from participating in transactions with these individuals and entities. Additionally, “non-U.S. persons could face sanctions for knowingly facilitating significant transactions for or on behalf of the individuals or entities blocked today.”

    The same day, OFAC issued two Ukraine-/Russia-related general licenses to “minimize immediate disruptions to U.S. persons, partners, and allies.” General License 12 authorizes through June 5 certain activities necessary to “wind down” operations, contracts, or agreements in effect prior to April 6 involving specified blocked persons. General License 13 authorizes through May 7 divestiture transactions with certain blocked persons to a non-U.S. person, as well as the facilitation of transfers of debt, equity, or other holdings involving listed blocked persons by a non-U.S. person to another non-U.S. person. OFAC also released eight new FAQs related to this action and published one updated FAQ related to CAATSA.

    Visit here for additional InfoBytes coverage on Ukraine/Russian sanctions.

    Financial Crimes OFAC Department of Treasury Sanctions CAATSA Russia Ukraine Trump

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  • OFAC expands Russian sanctions in connection with election interference and cyber attacks

    Financial Crimes

    On March 15, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced its decision to sanction an additional five entities and 19 individuals, pursuant to Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) and Executive Order 13694 (E.O. 13694). The CAATSA sanctions target “cyber actors” who carried out cyber attacks on behalf of the Russian government, while E.O. 13694 designations target entities and individuals who interfered with the 2016 U.S. election. Pursuant to OFAC’s sanctions, all property or interests in property of the designated persons within U.S. jurisdiction are blocked, and U.S. persons are “generally prohibited” from participating in transactions with these individuals and entities. As part of the announcement, Treasury Secretary Steven Mnuchin stated that “Treasury intends to impose additional CAATSA sanctions, informed by our intelligence community, to hold Russian government officials and oligarchs accountable for their destabilizing activities by severing their access to the U.S. financial system.”

    The same day, OFAC amended General License No. 1, “Authorizing Certain Transactions with the Federal Security Service” and reissued it as “Cyber General License No. 1A” (GL 1A). OFAC also published four updated FAQs relating to the agency’s sanctions and GL 1A and CAATSA.

    Visit here for additional InfoBytes coverage on Russian sanctions.

    Financial Crimes OFAC Sanctions International Department of Treasury CAATSA Russia

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  • OFAC reissues North Korean Sanctions Regulations

    Financial Crimes

    On March 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) published a final rule in the Federal Register to amend and reissue the North Korea Sanctions Regulations in their entirety. The final rule implements Executive Orders 13687, 13722, and 13810, references the North Korea Sanctions and Policy Enhancement Act of 2016 and the Countering America’s Adversaries Through Sanctions Act of 2017, and provides the Treasury Secretary, “in consultation with the Secretary of State, additional tools to disrupt North Korea’s ability to fund its weapons of mass destruction and ballistic missile programs.” All property and interests in property of the Government of North Korea and the Workers’ Party of Korea are blocked, transactions by U.S. persons involving the sanctioned entities are generally prohibited, and “all transactions within the United States, including all financial transactions that transit the U.S. financial system, must comply with OFAC regulations.” Among other things, the final rule (i) incorporates several general licenses previously only available on OFAC’s North Korea Sanctions page; (ii) adds several new general licenses; (iii) adds and expands provisions to provide the public with a more comprehensive set of regulations; (iv) updates certain regulatory provisions; and (v) makes other technical and conforming changes. The final rule takes effect March 5, 2018. Also released the same day were updates to OFAC’s North Korea-related FAQs.

    See here for previous InfoBytes coverage on North Korean sanctions.

    Financial Crimes OFAC Sanctions International Department of Treasury CAATSA

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  • OFAC sanctions target North Korea’s shipping and trading industry

    Financial Crimes

    On February 23, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) imposed additional sanctions targeting the North Korean shipping and trading industry. The sanctions include the designation of 27 entities, 28 vessels, and one individual consistent with the Countering America’s Adversaries Through Sanctions Act of 2017. Treasury Secretary Steven T. Mnuchin stated, “Treasury is aggressively targeting all illicit avenues used by North Korea to evade sanctions, including taking decisive action to block the vessels, shipping companies, and entities across the globe that work on North Korea’s behalf. This will significantly hinder the Kim regime’s capacity to conduct evasive maritime activities that facilitate illicit coal and fuel transports, and erode its abilities to ship goods through international waters.” All property or interests in property held by the sanctioned individual and entities within U.S. jurisdiction must be blocked, and transactions between the designated persons and Americans are also prohibited.

    Separately, OCAC issued a global shipping advisory in conjunction with the U.S. Department of State and the U.S. Coast Guard to, among other things, (i) outline methods employed by North Korea to facilitate illicit transactions to evade sanctions; (ii) list due diligence steps companies should employ to monitor illicit North Korean activity and mitigate the risk of potentially engaging in prohibited activity or transactions; and (iii) provide an overview of penalties associated with violating U.S. or UN sanctions.

    See here for previous InfoBytes coverage on North Korean sanctions.

    Financial Crimes OFAC Sanctions CAATSA International Department of Treasury

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  • Treasury releases list of Russian senior foreign political figures and oligarchs, does not impose new sanctions

    Financial Crimes

    On January 29, the U.S. Treasury Department released an unclassified report to Congress containing a list of 210 individuals who are either senior foreign political figures in the Russian Federation or Russian oligarchs with a net worth of at least $1 billion. Treasury emphasized that the report—which was mandated through Section 241 of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA)— (i) is not a sanctions list; (ii) should not be interpreted as a determination that individuals or entities included in the report or listed within classified appendices or annexes meet the criteria for sanctions designation (individuals and entities subject to separate sanctions are denoted within the report); and (iii) does not serve to indicate that the U.S. Government possesses information about an “individual’s involvement in malign activities.” Classified lists that may include officials and oligarchs of lesser rank and wealth will be submitted as well. Additionally, Treasury submitted to Congress a required classified annex to the report, which lists Russian parastatals entities that are defined as “companies in which state ownership is at least 25 percent and that had 2016 revenues of approximately $2 billion or more.” The annex also presents an analysis of potential impact on the U.S. economy that may result should additional debt and equity restrictions or sanctions be imposed on the identified entities.

    Separately, on January 30, Treasury released updated FAQs to address questions related to the report’s release.

    See here for additional CAATSA InfoBytes coverage.

    Financial Crimes Department of Treasury Sanctions International CAATSA OFAC Russia

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  • OFAC Issues License and Guidance on Amended Ukrainian/Russian Sanctions

    Financial Crimes

    On November 28, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) released General License 1B to address amendments made to Directives 1 and 2 (Directives) of its Ukrainian/Russian-related Sectoral Sanctions. The amendments were made in accordance with the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA). (See previous InfoBytes coverage on Directives here.) The Directives prohibit U.S. persons from dealings in certain equity and debt of persons determined by OFAC to be part of the Russian financial and energy sectors. According to a Treasury press release, General License 1B addresses the decrease in the maturity dates of debt transactions prohibited by Directive 1 from 30 days to 14 days, and the decrease in the maturity dates of debt transactions prohibited by Directive 2 from 90 days to 60 days. General License 1B authorizes transactions by U.S. persons, wherever located, and transactions within the United States that involve derivative products whose value is linked to an underlying asset that constitutes prohibited debt issued by person subject to Directives 1, 2 or 3 of the Sectoral Sanctions, including those issued on or after November 28 that have the reduced maturity dates targeted by CAATSA. OFAC also released updated FAQs to answer questions related to the Ukrainian-/Russian-related amended directives. 

    Financial Crimes OFAC Sanctions Department of Treasury CAATSA Russia Ukraine

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