The Treasury’s Office of Foreign Assets Control sanctioned four international petrochemical and petroleum companies that have transferred hundreds of millions of dollars worth of exports from the National Iranian Oil Company, Treasury said in a Jan. 23 press release. The NIOC is “instrumental” in Iran’s petroleum industry and helps finance Iran’s Islamic Revolutionary Guard Corps-Qods Force, the agency said. OFAC sanctioned Hong Kong-based broker Triliance Petrochemical Co., Hong Kong-based Sage Energy HK, Shanghai-based Peakview Industry Co. and Dubai-based Beneathco DMCC.
The Treasury’s Office of Foreign Assets Control sanctioned 13 aircrafts belonging to Petroleos de Venezuela, Venezuela’s state-run and sanctioned energy company, Treasury said in a Jan. 21 press release. The aircrafts have been used for travel for senior members of the Nicolas Maduro regime and have “operated in an unsafe and unprofessional manner in proximity to U.S. military aircraft,” Treasury said.
A New York lobbying firm agreed to pay about $12,000 for violations of the Global Terrorism Sanctions Regulations, the Treasury’s Office of Foreign Assets Control said in a Jan. 21 notice. The firm, Park Strategies, LLC, violated U.S. sanctions when it signed a contract and received payments from Al-Barakaat Group of Companies Somalia Limited, which was designated a Specially Designated Global Terrorist by OFAC in 2001. The contract required Park Strategies to provide lobbying services for Al-Barakaat, which were “outside the scope” of authorized activities specified in the Treasury’s general license for legal services.
The Treasury’s Office of Foreign Assets Control renewed two Venezuela-related general licenses, according to a Jan. 17 notice. General License No. 8E, which replaces No. 8D, authorizes certain transactions between Petroleos de Venezuela and Chevron, Haliburton, Schlumberger Limited, Baker Hughes and Weatherford International through 12:01 a.m. on April 22. General License No. 5B, which replaces No. 5A, states that certain transactions relating to the PdVSA “8.5 Percent Bond” are authorized on or after April 22.
The Treasury's Office of Foreign Assets Control does not adequately report on the money it and partner agencies spend related to sanctions against drug traffickers, leading to potentially inaccurate estimates and a lack of transparency when reporting expenditures, the Government Accountability Office said. Although OFAC reports to Congress on the resources and personnel it uses when imposing Foreign Narcotics Kingpin Designation Act sanctions, it provides “limited guidance” to partner agencies on how to fulfill those same reporting requirements, the GAO said. Administration officials also said it is sometimes “impossible” to determine whether the sanctions are working.
The Treasury’s Office of Foreign Assets Control has done little to define the broad scope of the Iranian executive order issued earlier this month that expanded sanctions authority for the Treasury and State departments, according to trade lawyers. The order (see 2001100050) -- which authorized both primary and secondary sanctions against Iran’s construction, mining, manufacturing and textiles sectors -- did not define the scope of the Iranian sectors that may be subject to sanctions, and OFAC has yet to release guidance. OFAC did, however, issue a frequently asked question that provided a 90-day wind-down period (see 2001160011).
The Commerce Department released its final rule for transferring export controls of firearms, ammunition and other defense items from the State Department to Commerce. The rule revises the Export Administration Regulations to transfer items that no longer “warrant control” on the U.S. Munitions List to the Commerce Control List. The rule will be published alongside a final rule from the State Department, which details the changes made to Categories I, II and II of the USML and describes “more precisely” the items that warrant “export or temporary import control” on the USML. The rules, which have been highly anticipated by the firearms industry (see 1908130066), will be published Jan. 23 and take effect March 9.
The Treasury’s Office of Foreign Assets Control clarified that people and companies involved in recently sanctioned Iranian sectors have a 90-day wind-down period, according to a frequently asked question issued Jan. 16. The wind-down period pertains to the sanctions and executive order recently announced by the Trump administration that authorizes new measures against the country’s construction, mining, manufacturing, and textiles sectors (see 2001100050). Entering into new business that would be considered sanctionable under the executive order after Jan. 10 will not be considered wind-down activity, the FAQ says. That activity may be subject to sanctions “even during the wind-down period.” The wind-down period expires April 9.
The Treasury’s Office of Foreign Assets Control sanctioned two North Korean entities involved in illegal exploitation of North Korea labor to generate money overseas, Treasury said in a Jan. 14 press release. Treasury said the two North Korean companies -- North Korea-based Namgang Trading Corporation (NTC) and China-based Beijing Sukbakso -- evade United Nations Security Council resolutions by sending North Korean laborers abroad. All UN member states were required to expel North Korean laborers in December, the press release said. NTC “maintained” laborers in “multiple” countries, including Russia, Nigeria and throughout the Middle East. Sukbakso, a lodging facility, handles portions of the travel and logistics for NTC personnel working overseas, Treasury said.
The Treasury’s Office of Foreign Assets Control sanctioned seven Venezuelan government officials who attempted to seize control of the country’s National Assembly and block an election, Treasury said in a Jan. 13 press release. The officials include Luis Eduardo Parra Rivero, Jose Gregorio Noriega Figueroa, Franklyn Leonardo Duarte, Jose Dionisio Brito Rodriguez, Conrado Antonio Perez Linares, Adolfo Ramon Superlano and Negal Manuel Morales Llovera. The sanctions came less than a week after the European Union announced intentions to soon impose sanctions on Venezuelan officials who tried to block the election process (see 2001100014).