UPDATES ON BIS AND OFAC SANCTIONS AND SDN LIST OF SANCTIONED INDIVIDUALS AND ENTITIES
May 16, 2022
In recent weeks, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued several updates to its “Specially Designated Nationals and Blocked Persons List” (“SDN List”) and Frequently Asked Questions (“FAQs”) regarding U.S. sanctions and enforcement of Transnational Criminal Organizations and certain sanctioned countries including Russia, Belarus, Libya and North Korea. A summary of each new development is provided as follows:
-
On April 20, 2022, OFAC issued notice of a new FAQ on the obligations of operators of credit card systems according to the Russian Harmful Foreign Activities Sanctions Regulations, 31 C.F.R. part 587 (RuHSR), and the Belarus Sanctions Regulations, 31 C.F.R. part 548 (“BSR”). According to OFAC’s new FAQ, U.S. operators of credit card systems and U.S. acquirers, are prohibited from processing transactions involving certain sanctioned foreign financial institutions, unless exempt or authorized by OFAC. Non-U.S. operators of credit card systems whose payment cards are issued by sanctioned foreign financial institutions may also be in violation of OFAC-administered sanctions regulations if they allow those cards to be used in the U.S.
-
Also on April 20, 2022, OFAC issued a press release announcing the addition of several entities and individuals to the SDN List for attempting to evade sanctions imposed by the U.S. and its international partners on Russia. Specifically, OFAC designated Russian commercial bank, Transkapitalbank and a global network of more than 40 individuals and entities led by U.S.-designated Russian oligarch Konstantin Malofeyev, including organizations whose primary mission is to facilitate sanctions evasion for Russian entities. Other companies recently designated by OFAC operate in Russia’s virtual currency mining industry, which is reportedly the third largest in the world, marking the first time the U.S. Treasury has designated a virtual currency mining company and put it on the SDN List.
-
Earlier in the month OFAC also issued three other press releases noting other updates to its SDN List. The first press release included the names and identifying information of seven individuals and an entity known as the Kinahan Organized Crime Group, that were placed on the SDN List in connection with U.S. sanctions on Libya, and the second being a press release including the names and information of seven persons and an entity across four countries in the Western Balkans that were added to the SDN List in response to U.S. sanctions on actors involved in destabilizing and corruption activities in the Western Balkans region. Lastly, as part of OFAC’s North Korea update, OFAC issued notice of its intent to update the identifying information of an entity known as “LAZARUS GROUP”, which is currently included in its SDN List in connection with U.S. sanctions currently imposed on North Korea and affiliated persons and entities.
-
On April 14, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) issued an update announcing that it would implement a new rule to expand sanctions against Russia and Belarus according to U.S. Export Administration Regulations in response to the invasion of and ongoing aggression in Ukraine. The updated BIS Rule expands licensing requirements for Russia and Belarus under the Export Administration Regulations to all items classified under any Export Control Classification Number in Categories 0 through 2 on the Commerce Control List (“CCL”) and removes license exception eligibility for aircraft registered in, owned or controlled by, or under charter or lease by Belarus or a national of Belarus. A copy of the BIS Final Rule can be found here.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
Share This Post
Authors
