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OFAC issues advisory for China’s Xinjiang region
On July 13, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), along with the Departments of State, Commerce, Homeland Security, and Labor, as well as the Office of the U.S. Trade Representative, issued an updated advisory on the risks for businesses with possible exposure in their supply chain to entities involved in human rights abuses in the Xinjiang Region. The recent advisory updates the original version released in July 2020 (covered by InfoBytes here), which was issued after OFAC announced sanctions pursuant to Executive Order 13818 against a Chinese government entity and four current or former government officials for alleged corruption violations of the Global Magnitsky Human Rights Accountability Act. The updated advisory outlines risks to be considered when “assessing business partnerships with, investing in, sourcing from, or providing other support to companies operating in Xinjiang, linked to Xinjiang, or with laborers from Xinjiang.”
OFAC issues new general license and related FAQs involving Venezuela
On July 12, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License (GL) 40, “Authorizing Certain Transactions Involving the Exportation or Reexportation of Liquefied Petroleum Gas to Venezuela.” GL 40 permits transactions and activities otherwise prohibited by Executive Order 13884 (covered by InfoBytes here) involving “the Government of Venezuela, Petróleos de Venezuela, S.A. (PdVSA), or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest.” OFAC also published two new FAQs, 914 and 915, related to GL 40.
OFAC sanctions officials and family connected to Burmese military
On July 2, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 14014 against 22 individuals connected to Burma’s military regime. The designations include seven key military members, along with 15 individuals identified as either the spouses or adult children of previously sanctioned senior military officials “whose financial networks have contributed to military officials’ ill-gotten gains.” The sanctions complement new restrictions imposed on four entities that have provided support for the Burmese military by the U.S. Department of Commerce’s Bureau of Industry and Security. As a result of the sanctions, all property and interests in property belonging to the identified individuals subject to U.S. jurisdiction are blocked and must be reported to OFAC. Additionally, “any entities that are owned, directly or indirectly, in the aggregate, 50 percent or more by one or more blocked persons are also blocked.” U.S. persons are generally prohibited from engaging in any dealings involving the property or interests in property of blocked or designated individuals, unless exempt or authorized by a general or specific license.
OFAC removes sanctions on International Criminal Court
On July 2, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued a final rule removing the International Criminal Court-Related Sanctions Regulations from the Code of Federal Regulations. The final rule is issued pursuant to Executive Order (E.O.) 14022, which was published in April and terminated a national emergency declared in E.O. 13928, “Blocking Property of Certain Persons Associated with the International Criminal Court,” which, among other things, authorized the federal government to block the assets and suspend entry into the United States of certain International Criminal Court (ICC) officials, employees, and agents, as well as their immediate family members. President Biden issued E.O. 14022 to revoke E.O. 13928, finding that, “although the United States continues to object to the [ICC’s] assertions of jurisdiction over personnel of such non-States Parties as the United States and its allies absent their consent or referral by the United Nations Security Council and will vigorously protect current and former United States personnel from any attempts to exercise such jurisdiction, the threat and imposition of financial sanctions against the Court, its personnel, and those who assist it are not an effective or appropriate strategy for addressing the United States’ concerns with the ICC.” As such, OFAC’s final rule formally rescinds the sanctions regulations effective July 6.
OFAC sanctions persons connected to human rights abuses
On June 21, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13405 against 16 individuals and five entities for allegedly facilitating and perpetrating “the Lukashenka regime’s continued assault against peaceful protesters, journalists, members of the opposition, and civil society.” One of the individuals is also being sanctioned for “having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of,” the designated Lukashenka regime. As a result of the sanctions, all property and interests in property belonging to the sanctioned persons, and “any entities that are owned, directly or indirectly, 50 percent or more” by the blocked persons that are subject to U.S. jurisdiction are blocked. OFAC notes that its regulations generally prohibit U.S. persons from participating in transactions with the designated 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.”
The same day, OFAC also issued Belarus General License (GL) 3 and related FAQs 912 and 913. Specifically, GL 3 authorizes limited transactions and activities involving the State Security Committee of the Republic of Belarus that are necessary and ordinarily incident to “requesting, receiving, utilizing, paying for, or dealing in” certain licenses and authorizations for the importation, distribution, or use of certain information technology products in Belarus, and is intended to ensure that U.S. persons that engage in certain business activities that are not otherwise prohibited are not unduly impacted.