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Financial Services Law Insights and Observations

OFAC issues Afghanistan general license and related FAQs

Financial Crimes Department of Treasury OFAC Afghanistan Of Interest to Non-US Persons OFAC Sanctions OFAC Designations

Financial Crimes

On February 25, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued Afghanistan General License (GL) 20, Authorizing Transactions Involving Afghanistan or Governing Institutions in Afghanistan, which authorizes, to the extent required, all transactions involving Afghanistan and its governing institutions that would otherwise be prohibited by U.S. sanctions, excluding financial transfers to certain organizations and any blocked individual who is in a leadership role of a governing institution in Afghanistan, other than for the purpose of effecting the payment of taxes, fees, or import duties, or the purchase or receipt of permits, licenses, or public utility services, provided that such payments do not relate to luxury items or services, which do not support basic human needs. According to OFAC, this action is part of “the Biden Administration’s efforts to help address the substantial challenges facing Afghanistan’s economy.”