World ECR | OFAC issues new licenses targeting Russia sanctions,
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued five new general licenses (GLs) that modify restrictions on transactions with Russia, including extending the deadline for energy-related transactions to April 30, 2025. Under General License No. 8K, OFAC authorizes "energy-related transactions" with designated Russian banks, including Sberbank, VTB Bank, Alfa-Bank and several others. The license defines energy-related activities as "the extraction, production, refining, liquefaction, gasification, regasification, conversion, concentration, manufacture, transportation or purchase of petroleum" and other energy products. The agency also provides a grace period for certain newly sanctioned entities. OFAC stated in General License No. 110 that "all transactions generally incidental to and necessary for any transaction involving one or more of the following blocked entities are authorized before 12:01 a.m. Eastern Standard Time on December 14, 2024." . Covers several companies, including XH Smart Tech China Co Ltd, Lokesh Machines Limited, Orbit Fintrade LLP and Wuhan Huazhong CNC Co., Ltd. Meanwhile, GL No. 25G authorizes "the…
World ECR | OFAC Sanctions Sudanese RSF Arms Supplier
Home > information > OFAC Sanctions Sudanese RSF Arms Supplier On October 8, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) initiated an investigation into Algoney Hamdan Daglo Musa (Algoney Hamdan Daglo Musa) pursuant to Executive Order (EO) 14098. ”) imposed sanctions for “leading efforts to provide weapons to continue the war in Sudan.” OFAC said: “The war between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has caused massive destruction, killing tens of thousands, displacing more than 11 million people and leaving millions facing emergency levels of hunger. Argoni is the director of procurement for Médecins Sans Frontières and the brother of Médecins Sans Frontières leader Mohamed Hamdan Daglo (Hemedti). Argoni led Médecins Sans Frontières in procuring weapons and military supplies, thereby prolonging the war. By arming Médecins Sans Frontières, his actions directly contributed to MSF’s ongoing siege of El Fasher, a city of nearly 2 million vulnerable civilians in North Darfur,…
OFAC Issues Guidance Extending Statute of Limitations to 10 Years
On April 24, 2024, President Biden signed the Peace Through Strength in the 21st Century Act (Pub. L. No. 118-50, div. D). Part of the bill includes a provision that extends the statute of limitations for civil and criminal violations of the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) from five years to ten years. The new statute of limitations takes effect on the date the President signs it. Recently, the U.S. Office of Foreign Assets Control (OFAC) issued a guidance document outlining the impact of the 10-year statute of limitations. According to the guidance, OFAC can now bring a civil enforcement action under IEEPA or TWEA within 10 years from the date of the violation if the violation occurred after April 24, 2019. To align with the established 10-year statute of limitations, OFAC issued an interim final rule on September 13, 2024, extending the statute of limitations for the recordkeeping requirements set…
WorldECR | OFAC: Blocking Order Procedures Clarified
Home > information > OFAC: Blocking Order Procedures Are Clarified The final rule issued by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), effective September 17, clarifies procedures for issuing orders freezing or designating specific property or interests in property as blocked, and addresses orders imposing less than a blanket freeze. The new rules update 35 OFAC sanctions regulations, according to a notice published in the Federal Register. “This rule covers 31 CFR Chapter 5, Part 35, and is used to implement OFAC’s authority to freeze property and interests in property of individuals under the International Emergency Economic Powers Act, 50 USC 1701, etc. etc. (IEEPA),” OFAC said in the notice. It explains: "The most common way that OFAC exercises its authority is to designate an individual and place him or her on OFAC's List of Specially Designated Nationals and Blocked Persons (SDN List). Once designated, all property and interests in property of the designee subject to U.S.…
ICYMI: Grant Leach Talks OFAC Compliance on Justice Magazine
Last week, Omaha partner Grant Leach appeared on an episode of The Justice Insiders podcast to discuss the expanding requirements and restrictions on U.S. businesses related to trade law, including a significant change to the statute of limitations related to OFAC sanctions enforcement—extending it from five years to ten years. Grant also discussed with host Gregg N. Sofer how the evolving trade law regime affects smaller businesses that may have difficulty expanding their compliance functions to manage trade risk.
WorldECR | On anniversary of election flaws, OFAC steps up efforts
Home > information > OFAC steps up sanctions on Belarus on anniversary of flawed election On August 9, on the anniversary of what the U.S. government called the fraudulent August 2020 Belarusian presidential election, in which Lukashenko "unleashed a brutal crackdown on peaceful protesters, democratic organizations, and journalists to illegally retain power," the U.S. Office of Foreign Assets Control (OFAC) said it was taking action against "19 individuals, 14 entities, and one aircraft" under Executive Order 14038 related to Belarus. "This action targets individuals who support Russia's war in Ukraine by producing military resources and transshipping goods to Russia, evading sanctions on behalf of Belarusian defense entities, and generating revenue for Belarusian oligarchs in Alexander Lukashenko's inner circle," the statement said. "OFAC is also designating five of these targets - three individuals and two entities - under EO 14024 related to Russia." It also noted that the measures were “made more severe by actions taken earlier this week by the…
WorldECR | OFAC Sanctions Paraguayan Tobacco Company
Home > information > OFAC imposes sanctions on Paraguayan tobacco company for links to designated former president The U.S. Office of Foreign Assets Control (“OFAC”) said it is imposing sanctions on Paraguayan tobacco company Tabacalera del Este SA (“Tabesa”) for providing financial support to former Paraguayan President Horacio Manuel Cartes Jara, who was designated as a target for sanctions in January 2023 for “engagement in corruption.” On August 6, OFAC stated that “even though Cartes no longer owns Tabesa after entering into a sales agreement to acquire Tabesa’s shares, Tabesa has paid millions of dollars to Cartes and plans to continue to pay despite Cartes being designated as the owner of Tabesa.” It also noted that licensing activities related to Tabesa continue to be authorized under the Section 7 General License of the Global Magnitsky Sanctions Regulations. Looking for expert advice on export controls or sanctions issues? Subscribe now to receive Regular updates on the latest developments in global trade…
WorldECR | OFAC Announces New Compliance Hotline
Home > information > OFAC Announces New Compliance Hotline The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) said it is “moving to a single, user-friendly online platform to receive inquiries from the public.” On August 2, OFAC said: “Users can now submit inquiries and provide all necessary details directly through OFAC’s new Compliance Hotline page,” explaining that “this new platform is designed to improve OFAC’s tracking of inquiries and help OFAC assess when additional public guidance is needed.” OFAC will retire the existing hotline phone number and email and fully transition to the new platform by January 1, 2025. Looking for expert advice on export controls or sanctions issues? Subscribe now to receive Regular updates on the latest developments in global trade controls and sanctions Expert advice to help you prepare your business for regulatory changes Gain in-depth knowledge of trade control policies Advising on the impact of U.S. trade controls on non-U.S. businesses International law enforcementNews and…
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