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OFAC sanctions terror operatives and charcoal smugglers in Somalia
On May 24, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order (E.O.) 13536 and E.O. 13244, against 26 individuals and entities connected with terrorist group al-Shabaab. According to OFAC, the 15 financial facilitators and operatives, four charcoal smugglers, and seven of their associated companies are designated for financial facilitation, business activities, collection of funds on behalf of the terrorist group, proliferation of Improvised Explosive Devices (IEDs), and illegal charcoal smuggling from Somalia, all of which have exacerbated local conflicts and suffering. The 15 designated individuals have generated hundreds of thousands of dollars through illegal fee collections from local Somalis, to support al-Shabaab operations and weapons procurement in southern Somalia. Regarding the four charcoal smugglers, after 2012, Somali charcoal exports and imports were banned pursuant to United Nations Security Council Resolution 2036 due to its role in fueling instability in Somalia and funding criminal and terrorist organizations.
As a result of the sanctions, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. OFAC further mentioned, “any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the individuals or entities designated today could be subject to U.S. correspondent or payable-through account sanctions.” Lastly, OFAC stressed that engaging in certain transactions with several the individuals and entities designated entails “risk of secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that knowingly conducted or facilitated any significant transaction on behalf of a Specially Designated Global Terrorist.”
OFAC sanctions terrorist weapons trafficking network tied to ISIS-Somalia
On November 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13224 against the Islamic State in Somalia (ISIS-Somalia) — marking the first time this affiliate of the Islamic State of Iraq and Syria (ISIS) is being designated. The action follows designations taken by OFAC earlier in the month against a network of financial facilitators who hold leadership roles and are key interlocutors between the group and local companies in Somalia (covered by InfoBytes here). According to OFAC, the designated persons serve as “critical nodes for a weapons trafficking network that is closely integrated with ISIS-Somalia,” and maintain “strong ties to al-Qa’ida in the Arabian Peninsula (AQAP) and al-Shabaab.” Addressing the significance of the sanctions, Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said “[t]oday, we take direct aim at the networks funding and supplying both ISIS-Somalia and al-Shabaab that support their violent acts. The involvement of those designated today in other criminal activity, including piracy and illegal fishing, demonstrates the extent of ISIS-Somalia’s integration with illicit networks and other terrorist organizations operating in the region.” “Treasury is committed to working with partners in the region to disrupt the financing of ISIS and al-Shabaab,” Nelson said.
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.” U.S. persons are also generally prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons. Persons that engage in certain transactions with the individuals or entities designated today may themselves be exposed to designation, OFAC warned, adding that foreign financial institutions that knowingly facilitate significant transactions or provide significant financial services to any of the sanctioned persons could also be subject to U.S. sanctions.
OFAC sanctions financial facilitators
On October 17, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions, pursuant to Executive Order (E.O.) 13224, against a network of financial facilitators who hold leadership roles and are key interlocutors between the group and local companies in Somalia. According to OFAC, the network has engaged in weapons procurement, financial facilitation, and recruitment activities. OFAC further noted that in addition to being leaders within the designated network, these facilitators have had direct contact with other previously designated officials in the network. Concurrent with OFAC’s designations, the U.S. State Department designated five of the network’s leaders pursuant to E.O. 13224, as amended, for their leadership roles within the designated network. 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.” U.S. persons are also generally prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons. Persons that engage in certain transactions with the individuals or entities designated today may themselves be exposed to designation. Additionally, OFAC warned that engaging with the designated individuals can impose risk of secondary sanction. OFAC also stated that it “can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that knowingly conducts or facilitates any significant transaction, or provides significant financial services, for any [Specially Designated Global Terrorist].”
OFAC amends Somalia Sanctions Regulations
On April 27, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced amendments and reissued the Somalia Sanctions Regulations in its entirety to further implement an April 2010 Somalia-related executive order (E.O. 13536), and to implement a July 2012 Somalia-related executive order (E.O. 13620). The final rule “replaces the regulations that were published in abbreviated form on May 5, 2010 and includes additional interpretive and definitional guidance, general licenses, statements of licensing policy, and other regulatory provisions that will provide further guidance to the public.” Updates include new section 1(a) of E.O. 13536, as amended by E.O. 13620, which blocks, with certain exceptions, “all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any United States person of: (i) the persons listed in the Annex to amended E.O. 13536; and (ii) any person determined by the Secretary of the Treasury, in consultation with the Secretary of State. . .to have engaged in acts that directly or indirectly threaten the peace, security, or stability of Somalia. . . .” The final rule takes effect April 28.