The Office of Foreign Assets Control on Jan. 24 extended two Ukraine-related licenses. General License 13Q, which replaces 13P "Authorizing Certain Transactions Necessary to Divest or Transfer Debt, Equity, or Other Holdings in GAZ Group," and General License 15K, which replaces 15J "Authorizing Certain Activities Involving GAZ Group." These licenses were set to expire Jan. 26, via a previous extension issued Dec. 23, 2020. The new licenses are being extended for 90 days, through 12:01 a.m. Eastern Daylight Time, April 27. OFAC also updated its frequently asked questions related to the updated GLs.
Treasury’s Office of Foreign Assets Control is amending the Transnational Criminal Organizations Sanctions Regulations and reissuing them in their entirety. OFAC said, in a notice that the reissuance will further implement two executive orders related to transnational criminal organizations, issued July 24, 2011, and March 15, 2019. OFAC amended the regulations to provide “additional interpretive guidance, definitions, general licenses, and other regulatory provisions that will provide further guidance to the public.” The regulations implement targeted sanctions directed at persons that constitute a significant transnational criminal organization or persons that have materially assisted, or provided financial, material, or technological support for those organizations.
Australia this week began implementing a U.N. Security Council exemption for certain humanitarian-related activities and transactions involving the Taliban in Afghanistan. Under the exemption, adopted by the UNSC Dec. 22 and implemented by Australia Jan. 11, certain “payment of funds, other financial assets or economic resources, and the provision of goods and services necessary” for humanitarian aid will “not constitute an offence under Australian sanctions laws,” Australia said. All other transactions or activities not covered by the exemption may still violate Australian sanctions, the country said. The U.S. recently issued new guidance and general licenses to help humanitarian aid flow more easily to Afghanistan (see 2112220041).
China this week released its first export control white paper, which includes an overview of its recently created export control law (see 2010190033), how it has sought to improve and coordinate its export restrictions with trading partners and its expectations for industry compliance. The paper also describes some new export control initiatives, including a broader enforcement approach and potential revisions to China’s export control list.
The Treasury Department’s new “dangerous” humanitarian-related general licenses for Afghanistan lack oversight and could empower the Taliban, said Rep. Michael McCaul of Texas, the top Republican on the House Foreign Affairs Committee. McCaul said the licenses are “broad sanctions carveouts” that could “reward, legitimize and enable the same Taliban that took power by force and has shown no interest in abiding by international norms.”
The Office of Foreign Assets Control fined TD Bank about $115,000 for two separate instances of sanctions violations, the agency said Dec. 23. The bank illegally processed nearly 1,500 transactions that violated U.S. sanctions against North Korea and maintained two accounts for more than four years for a U.S. resident who was sanctioned under Foreign Narcotics Kingpin Sanctions Regulations. OFAC said both cases resulted from “multiple sanctions compliance breakdowns,” including human errors and screening deficiencies.
The Office of Foreign Assets Control published a new fact sheet, three new general licenses and other guidance to help humanitarian aid flow more easily to Afghanistan. The six-page guidance describes the various general licenses available for transactions involving Afghanistan, which now cover certain U.S. government activities, transactions involving international organizations and other humanitarian work. The guidance comes after months of banks and non-governmental organizations asking OFAC to provide more assurances that they won’t be caught by sanctions (see 2109020064).
The U.S. should lift all sanctions that may be preventing shipments of food, medicine and other humanitarian goods to Cuba, including restrictions on banks and personal remittances, more than 100 Democratic lawmakers wrote to President Joe Biden Dec. 14. Although the Treasury Department authorizes certain humanitarian aid to Cuba through its general licenses (see 2004160039 and 2108120025), the lawmakers said banks and humanitarian workers need more assurances.
The Office of Foreign Assets Control on Dec. 10 issued a new general license authorizing certain non-commercial, personal remittances to Afghanistan. General License No. 16 authorizes certain transactions involving the Taliban, the Haqqani Network, or any entity they own by 50% or more if those transactions are “ordinarily incident and necessary to the transfer” of personal remittances to Afghanistan.
The Office of Foreign Assets Control fined an unnamed person about $133,000 after they violated U.S. sanctions against Iran, OFAC said in a Dec. 8 notice. OFAC said the person accepted payment on behalf of an Iran-based company selling cement clinker to another company for a project in a third country.