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OFAC sanctions Iranian leaders
On October 6, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions, pursuant to Executive Order 13553, against seven senior leaders within Iran’s government and security apparatus for the shutdown of Iran’s Internet access and the ongoing violence against peaceful protesters following the death of a 22-year old who died in the custody of Iran’s Morality Police. OFAC noted that the designations follow the September 22 sanctions against Iran’s Morality Police along with seven senior leaders who oversee Iran’s security organizations (covered by InfoBytes here). Collectively, and with the release of Iran General License D-2 (covered by InfoBytes here), which authorizes exports of additional tools to assist Iranians in accessing the Internet, these sanctions “show the United States’ commitment to free, peaceful assembly and open communication.” As a result of the sanctions, all property and interests in property belonging to the sanctioned persons subject to U.S. jurisdiction are blocked and must be reported to OFAC. Additionally, “any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.” U.S. persons are also generally prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons. Persons that engage in certain transactions with the individuals or entities designated today may themselves be exposed to designation. Additionally, OFAC warned that “any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the individuals designated today could be subject to U.S. sanctions.”
OFAC sanctions wildlife trafficking organized crime group
On October 7, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13581 against a Malaysian national, a wildlife trafficking transnational criminal organization, and a Malaysian company for trafficking endangered wildlife and engaging in poaching. According to OFAC, the Malaysian individual specializes in transporting rhino horn, ivory, and pangolins from Africa, generally utilizing routes through Malaysia and Laos and onward to consumers in Vietnam and China. OFAC noted that the designations were made in collaboration with the U.S. Fish and Wildlife Service, the State Department, and the DOJ. As a result of the sanctions, all property and interests in property belonging to the sanctioned targets that are in the U.S. or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Further, “any entities that are owned 50 percent or more by one or more designated persons” are blocked. U.S. persons are prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons.
OFAC sanctions arms dealers for supporting Burma’s military regime
On October 6, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 14014 against three individuals and one entity connected to Burma’s military regime. According to OFAC, the sanctions target persons who profit from the regime’s oppressive actions, including support networks and war profiteers that enable weapons procurement for the military regime. The same day, the State Department also designated the former Burma police chief and deputy Home Affairs minister under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2022, for his involvement in “gross violations of human rights.” As a result of the sanctions, all property and interests in property belonging to the sanctioned persons subject to U.S. jurisdiction are blocked and must be reported to OFAC. Additionally, “any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.” U.S. persons are generally prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons unless authorized by a general or specific OFAC license, or are otherwise exempt.
OFAC sanctions North Korean fuel procurement network
On October 7, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13810 against two individuals and three entities for engaging in activities related to the exportation of petroleum to the Democratic People’s Republic of Korea (DPRK), which directly support the development of DPRK weapons programs and its military. OFAC’s actions build upon other U.S. government actions taken against one of the sanctioned individuals and entities, including criminal charges for conspiring to evade economic sanctions of the DPRK and conspiring to launder money. As a result of the sanctions, all property and interests in property of the sanctioned persons subject to U.S. jurisdiction are blocked and must be reported to OFAC. OFAC noted that its regulations generally prohibit U.S. persons from participating in transactions with the designated persons, including transactions transiting the U.S. OFAC’s announcement further warned that any foreign financial institution that knowingly facilitates significant transactions or provides significant financial services for any of the designated persons may be subject to U.S. correspondent account or payable-through account sanctions. Additionally, persons that engage in certain transactions with the designated persons may themselves be exposed to designations.
OFAC sanctions persons in Bosnia and Herzegovina
On October 3, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 14033 against two individuals and one business entity in Bosnia and Herzegovina (BiH). According OFAC, these designations follow OFAC’s September 26 designation of a corrupt state prosecutor in BiH and build on other recent sanctions imposed on individuals and entities in the region (covered by InfoBytes here). Collectively, OFAC noted that “these actions underscore the United States’ willingness to hold accountable those enabling divisive and destabilizing activities in the Western Balkans.” OFAC further noted that one of the designated individuals is one of the wealthiest individuals in BiH and is the longtime owner of a large engineering firm. According to OFAC, the individual and the firm “have been linked to corruption in the construction sector.” The sanctions also target the Prime Minister of the Federation of Bosnia and Herzegovina for “misus[ing] pensioner data for the benefit of his own political party and contrary to BiH law.” As a result of the sanctions, all property and interests in property belonging to the sanctioned individuals and entities subject to U.S. jurisdiction are blocked and must be reported to OFAC. Additionally, “any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.” OFAC further noted that “transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt,” which “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.”
Treasury reissues Libyan Sanctions Regulations
On September 30, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a final rule reissuing the Libyan Sanctions Regulations, which were previously published in abbreviated form in 2011. The reissuance of the Libyan Sanctions Regulations includes additional interpretive guidance and definitions, general licenses, and other regulatory provisions that will provide further guidance to the public. includes additional interpretive guidance and definitions, general licenses, and other regulatory provisions that will provide further guidance to the public. The rule is effective immediately.
OFAC reissues Central African Republic Sanctions Regulations and Western Balkans Stabilization Regulations
On September 28, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the reissuance of the Central African Republic Sanctions Regulations and the Western Balkans Stabilization Regulations. OFAC noted that the Central African Republic Sanctions Regulations were previously published in abbreviated form in 2014, and the Western Balkans Stabilization Regulations were originally published in abbreviated form in 2002 and last amended in 2011. The reissued regulations include, among other things, additional interpretive guidance and definitions, general licenses, and other regulatory provisions that will provide further guidance to the public. The regulations are effective immediately.
OFAC issues guidance on instant payment systems sanctions compliance
On September 30, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) published Sanctions Compliance Guidance for Instant Payment Systems, which emphasizes the importance of taking a risk-based approach to managing sanctions risks in the context of new payment technologies, such as instant payment systems, and highlights considerations relevant to managing those risks. According to OFAC, the guidance “encourages developers of instant payment systems to incorporate sanctions compliance considerations and features as they develop these systems.” The guidance, among other things, describes: (i) risk factors and considerations for instant payment systems; (ii) domestic vs. cross-border payment system; (iii) availability of emerging sanctions compliance technologies and solution; (iv) nature and value of payment; and (v) OFAC engagement and resources.
OFAC announces Russian sanctions, REPO provides update
On September 30, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), together with the Departments of Commerce and State, announced sanctions against 14 persons in Russia’s military-industrial complex, including two international suppliers, three key leaders of Russia’s financial infrastructure, and immediate family members of certain senior Russian officials, as well as 278 members of Russia’s legislature, for enabling Russia’s referenda and effort to annex Ukraine. As a result of the sanctions, all property and interests in property belonging to the sanctioned targets that are in the U.S. or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Further, “any entities that are owned 50 percent or more by one or more designated persons” are blocked. U.S. persons are prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons, unless exempt or authorized by a general or specific OFAC license. Additionally, OFAC issued FAQ 1091 to provide new guidance warning of the heightened sanctions risk that international actors outside of Russia would face for providing political or economic support to Russia as a result of its illegal attempts to change the status of Ukrainian territory. According to OFAC, the FAQ emphasizes that the U.S. “is prepared to more aggressively use its existing sanctions authorities, including E.O. 13660, E.O. 14024, and E.O. 14065, to target persons—inside or outside Russia—whose activities may constitute material assistance, sponsorship, or provision of financial, material, or technological support for, or goods or services (together ‘material support’) to or in support of persons sanctioned pursuant to those Executive orders, or sanctionable activity related to Russia’s sham referenda, purported annexation, and continued occupation of the Kherson, Zaporizhzhya, Donetsk, and Luhansk regions of Ukraine.” OFAC noted, however, that it “will generally not impose sanctions on non-U.S. persons that engage in transactions that would be authorized for U.S. persons, such as certain energy-related transactions.”
The same day, Treasury and the DOJ announced that the Russian Elites, Proxies, and Oligarchs (REPO) Task Force Deputies convened to accelerate oligarch asset forfeiture efforts in response to Russia’s war in Ukraine. As previously covered by InfoBytes, REPO is a multilateral task force that was formed in February 2022 and is “committed to using their respective authorities in concert with other appropriate ministries to collect and share information to take concrete actions, including sanctions, asset freezing, and civil and criminal asset seizure, and criminal prosecution.” Representatives from Australia, Canada, Germany, France, Italy, Japan, the UK, the European Commission, and the U.S. discussed continuing initiatives “to tailor already robust asset forfeiture tools and maximize the impact of our joint work on Russian elites and their cronies” for their involvement with the war in Ukraine. REPO further noted that their steps “immobilized Russian assets as one of several means to induce Russia to come into compliance with its international law obligations, including the obligation to pay reparations.”
OFAC announces settlement with electronic rewards company
On September 30, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $116,000 settlement with a Washington-based company that supplies and distributes electronic rewards, for allegedly processing transactions in violation of multiple U.S sanctions regulations. According to OFAC’s notice, the company allegedly “transmitted 27,720 merchant gift cards and promotional debit cards, totaling $386,828.65, to individuals with email or IP addresses associated with Cuba, Iran, Syria, North Korea, or the Crimea region of Ukraine.” In arriving at the settlement amount, OFAC considered various aggravating factors, including that the company (i) “failed to impose risk-based geolocation rules using tools at its disposal to identify the location of its reward recipients, despite having reason to know that it was transmitting rewards to recipients in sanctioned jurisdictions”; and (ii) “conferred up to $386,828.65 in economic benefit to jurisdictions and regions subject to sanctions.” OFAC also considered various mitigating factors, including that the company has not received a penalty notice from OFAC in the preceding five years, “represents that it undertook various measures to strengthen its OFAC compliance processes,” voluntarily self-disclosed the alleged violations, and substantially cooperated with the investigation.