InfoBytes Blog
OFAC sanctions corruption networks connected to transnational organized crime
On December 8, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against 16 individuals and 24 entities across several countries in Europe and the Western Hemisphere under the Global Magnitsky Human Rights Accountability Act, which “targets perpetrators of corruption and serious human rights abuse.” These designations follow actions announced last week targeting corruption in the Democratic Republic of Congo as well as persons that contribute to repression and the undermining of democracy around the world (covered by InfoBytes here and here). OFAC also highlighted the recently released United States Strategy on Countering Corruption, which outlines a whole-of-government approach to elevating the fight against corruption, and places particular “emphasis on the transnational dimensions of the challenges posed by corruption, including by recognizing the ways in which corrupt actors have used the U.S. financial system and other rule-of-law based systems to launder their ill-gotten gains.” (Covered by InfoBytes here.) Organized crime and corruption, which are often linked, OFAC warned, undermine the integrity of the international financial system.
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.” OFAC noted that U.S. persons are prohibited from participating in transactions with these persons, which includes “the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods or services from any such person.”