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  • OFAC sanctions Cuban officials

    Financial Crimes

    On August 20, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13818 against three Cuban individuals under the Global Magnitsky Human Rights Accountability Act. According to OFAC, this is the fourth round of sanctions since protests started in Cuba in July, as OFAC continues to impose sanctions on individuals and entities connected with actions to suppress peaceful, pro-democratic protests in Cuba (covered by InfoBytes here and here). As a result of the sanctions, all transactions by U.S. persons or in the U.S. that involve any property or interests in property of designated or otherwise blocked persons are generally prohibited. OFAC notes that its regulations generally prohibit U.S. persons from participating in transactions with these persons, which include “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.”

    Financial Crimes Of Interest to Non-US Persons OFAC Sanctions SDN List Cuba Department of Treasury OFAC OFAC Designations

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  • OFAC sanctions Cuban officials

    Financial Crimes

    On August 13, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13818 against two Cuban individuals and one Cuban entity under the Global Magnitsky Human Rights Accountability Act. According to OFAC, this is the third round of sanctions since protests started in Cuba in July, as the Department continues to impose sanctions on individuals and entities connected with actions to suppress peaceful, pro-democratic protests in Cuba (covered by InfoBytes here and here). As a result of the sanctions, all transactions by U.S. persons or in the U.S. that involve any property or interests in property of designated or otherwise blocked persons are generally prohibited. OFAC notes that its regulations generally prohibit U.S. persons from participating in transactions with these persons, which include “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.”

    Financial Crimes Of Interest to Non-US Persons OFAC Sanctions SDN List Department of Treasury OFAC OFAC Designations Cuba

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  • Treasury issues Cuba joint fact sheet

    Financial Crimes

    On August 11, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Department of Commerce’s Bureau of Industry and Security (BIS) released a fact sheet to emphasize the U.S. government’s commitment to promoting the ability of the Cuban people “to seek, receive, and impart information” through access to the internet. According to OFAC, “[t]he fact sheet highlights the most relevant exemptions and authorizations pertinent to supporting the Cuban people through the provision of certain internet and related telecommunications services.” The fact sheet also notes that though most transactions between persons subject to U.S. jurisdiction and Cuba are prohibited under the current embargo, the U.S. government permits certain activities to support the Cuban people’s access to information on the internet. The relevant OFAC regulations can be found in the Cuban Assets Control Regulations, 31 C.F.R. part 515 and the relevant BIS regulations can be found in the Export Administration Regulations, 15 C.F.R. parts 730-774.

    Financial Crimes OFAC Department of Commerce Cuba

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  • OFAC sanctions Cuban officials

    Financial Crimes

    On July 30, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13818 against two Cuban individuals and one Cuban entity under the Global Magnitsky Human Rights Accountability Act. According to OFAC, the sanctions expand on Treasury’s July 22 designations by sanctioning additional persons in connection with actions to suppress peaceful, pro-democratic protests in that began on July 11 in Cuba (covered by InfoBytes here). As a result of the sanctions, all transactions by U.S. persons or in the U.S. that involve any property or interests in property of designated or otherwise blocked persons are generally prohibited. OFAC notes that its regulations generally prohibit U.S. persons from participating in transactions with these persons, which include “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.”

    Financial Crimes SDN List Of Interest to Non-US Persons Cuba Sanctions Department of Treasury OFAC Designations

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  • OFAC sanctions Cuban officials

    Financial Crimes

    On July 22, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13818 against one Cuban individual and one Cuban entity under the Global Magnitsky Human Rights Accountability Act. According to OFAC, the sanctioned parties are connected with the repression of peaceful, pro-democratic protests in Cuba that began on July 11. As a result of the sanctions, all transactions by U.S. persons or in the U.S. that involve any property or interests in property of designated or otherwise blocked persons are generally prohibited. OFAC notes that its regulations generally prohibit U.S. persons from participating in transactions with these persons, which include “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.”

    Financial Crimes OFAC Department of Treasury SDN List Of Interest to Non-US Persons Cuba OFAC Sanctions OFAC Designations

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  • OFAC sanctions Cuban Ministry of the Interior for human rights abuse

    Financial Crimes

    On January 15, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against the Cuban Ministry of Interior and the Minister of Interior for his alleged connection to serious human rights abuses. According to OFAC, the sanctions are taken pursuant to Executive Order 13818, which implements the Global Magnitsky Human Rights Accountability Act and “targets perpetrators of serious human rights abuse and corruption.” As a result of the sanctions, all of the individual’s property and interests in property that are blocked pursuant to the Cuban Assets Control Regulations continue to be blocked, as well as any of the individual’s property and interests in property in the United States or possessed or controlled by U.S. persons. Additionally, OFAC regulations prohibit U.S. persons from participating in transactions with the individual unless exempt or otherwise authorized by an OFAC general or specific license.

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

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  • OFAC settles with digital asset company over multiple sanctions violations

    Financial Crimes

    On December 30, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a nearly $100,000 settlement with a California-based digital asset security company for 183 apparent violations of multiple sanctions programs. According to OFAC, between March 2015 and December 2019, the company processed 183 digital currency transactions, totaling over $9,000, on behalf of individuals who were located in sanctioned jurisdictions, such as the Crimea region of Ukraine, Cuba, Iran, Sudan, and Syria. OFAC notes that, prior to April 2018, the company allowed users to open accounts by providing only a name and email address, and while it then amended its policies to require all new accountholders to verify the country in which they were located, it did not perform additional verification or diligence on their actual location.

    In arriving at the settlement amount, OFAC considered various aggravating factors, including that the company (i) failed to implement appropriate, risk-based sanctions compliance controls; and (ii) had reason to know that some of its users were located in sanctioned jurisdictions based on users’ IP address data.

    OFAC also considered various mitigating factors, such as (i) the company not having received a penalty notice from OFAC in the proceeding five years; (ii) the company cooperating with the investigation; and (iii) the company having undertaken remedial measures, including hiring a Chief Compliance Officer and implementing a new OFAC policy.

    Financial Crimes OFAC Sanctions OFAC Designations Settlement Enforcement Of Interest to Non-US Persons Cuba Iran Syria

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  • OFAC designates Cuban state-owned businesses for evading U.S. sanctions

    Financial Crimes

    On December 21, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to the Cuban Assets Control Regulations against three state-owned entities “controlled by the Cuban military with strategic roles in the Cuban economy.” According to OFAC, the entities are identified on OFAC’s List of Specially Designated Nationals and Blocked Persons, with two of the entities being designated for, among other things, using “their Panamanian incorporation to subvert international trade restrictions.” One of the sanctioned entities, OFAC notes, is a financial investment and remittance company “authorized by the Central Bank of Cuba to finance export operations, conduct financial leasing operations, and handle commercial distribution of remittance cards.” Find continuing InfoBytes coverage on the Cuban Assets Control Regulations here.

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

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  • OFAC amends CACR to remove certain remittance-related general authorizations

    Financial Crimes

    On October 26, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a final rule amending the Cuban Assets Control Regulations (CACR) “to further implement portions of the President’s foreign policy toward Cuba to deny the Cuban government access to funds in connection with remittances to Cuba.” Among other things, the final rule amends several general licenses to remove any transactions that involve entities or subentities identified on the State Department’s Cuba Restricted List (CRL) from the scope of certain remittance-related general authorizations. According to OFAC, the CRL is a list of “entities and subentities under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba.” Additionally, the final rule also clarifies that transactions that relate to the collection, receipt or forwarding of remittances involving an identified entity or subentity are “not authorized as an ordinarily incident transaction where the terms of the general or specific license expressly exclude any such transactions.” In conjunction with the announcement of the final rule, OFAC also updated and issued several new Frequently Asked Questions. The final rule takes effect November 26, allowing for a 30-day implementation period in order to allow for technical implementation of the additional restrictions.

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

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  • OFAC reaches $5.8 million settlement to resolve Cuban Assets Control Regulations violations

    Financial Crimes

    On October 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a more than $5.8 million settlement with a New York-incorporated travel assistance services company to resolve 2,593 apparent violations of the Cuban Assets Control Regulations (CACR). According to OFAC’s web notice, from roughly June 2010 to January 2015, the company formally codified an indirect payment process in its procedures manual, in which it “intentionally referred” Cuba-related payments to a Canadian affiliate to avoid “processing reimbursement payments directly to Cuban parties and to travelers while they were located in Cuba.” Reimbursements were then sent from the company to the Canadian affiliate for those payments. While the company had a sanctions compliance policy during the time of the apparent violations to screen for individuals or entities on OFAC’s List of Specially Designated Nationals and Blocked Persons, it allegedly failed to comply with screening requirements for countries and regions subject to OFAC prohibitions.

    In arriving at the settlement amount, OFAC considered various aggravating factors, including that the company (i) knew it was illegal to make direct payments to Cuban service providers and therefore formalized the aforementioned referral process; (ii) provided “prohibited post-travel claim reimbursements directly to unauthorized Canadian subscribers who travelled to Cuba”; and (iii) knew of the conduct at issue because the indirect payment process was codified and approved by its CEO.

    OFAC also considered various mitigating factors, including that (i) the CACR was later amended to authorize some of the apparent violations; (ii) the company enhanced its sanctions compliance program by, among other things, implementing a formal structure for compliance personnel and conducting sanctions training for all employees; (iii) the company voluntarily disclosed the violations and signed a tolling agreement, including multiple extensions; and (iv) the company terminated the conduct leading to the apparent violations and has undertaken remedial measures to minimize the risk of similar violations from occurring in the future.

    Financial Crimes OFAC Department of Treasury Sanctions Settlement Of Interest to Non-US Persons Cuba

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