The U.S. Treasury’s Office of Foreign Assets Control (OFAC) published new guidance in October related to the implementation of the Countering America’s Adversaries Through Sanctions Act (CAATSA). As we have previously summarized, the new law is divided into three parts: Title I-Sanctions with Respect to Iran; Title II-Sanctions with Respect to the Russian Federation and Combating Terrorism and Illicit Financing; and Title III-Sanctions with Respect to North Korea.
Although guidance is pending on Title III, OFAC has now published FAQs or updated FAQs on Titles I and II as follows.
Guidance on Title I / Iran Sanctions Developments
On October 13, in accordance with Section 105 of CAATSA, OFAC imposed sanctions on the Iranian Revolutionary Guard Corps (IRGC) applicable under global terrorism Executive Order 13224. On October 31, OFAC amended its Global Terrorism Sanctions Regulations to block the property and interests in property of foreign persons identified by OFAC as officials, agents, or affiliates of the IRGC.
As OFAC FAQs 533 and 534 explain, although the IRGC was previously sanctioned by OFAC under other programs, the new designation does not allow for certain exemptions related to personal communications, humanitarian donations, information or information materials, and travel, which were previously available.
Guidance on Title II / Russia Sanctions Guidance
OFAC and the State Department have also now published substantial guidance related to implementation of the various Russia-related sanctions. The following table summarizes the recent changes, issued at three separate times in the last six weeks (September 29, October 27, and October 31):
|
Section of CAATSA |
Topic |
Agency |
Guidance / Regulations Issued |
|
Section 223 |
Modification of sectoral sanctions |
OFAC |
Amended FAQs Nos. 370, 394-95, 405, 408-10, 415, & 419
Published Modified Directive 1 |
|
Sectoral sanctions related to railways and mining / metals |
OFAC |
Published New FAQ No. 539 | |
|
Section 225 |
Secondary sanctions related to special Russian crude oil projects |
State |
Published New Guidance and FAQ |
|
Section 226 |
Secondary sanctions on FFIs related to financing transactions with sanctioned persons and related to special crude oil projects |
OFAC |
Published New FAQs Nos. 541-543 |
|
Section 228 |
Primary sanctions related to foreign sanctions evaders and serious human rights abusers in the Russian Federation |
OFAC |
Published New FAQs Nos. 544-546 |
|
Section 231 |
Secondary sanctions related to Russian defense or intelligence sector |
State |
Published New Guidance and FAQs
Published List of Persons Operating in Russian Defense or Intelligence Sectors |
|
Section 232 |
Secondary sanctions related to Russian energy export pipelines |
State |
Published New Guidance |
|
Section 233 |
Secondary sanctions related to unjust privatization of Russian state-owned assets |
OFAC |
Published New FAQ No. 540 |
The guidance represents a continuation of OFAC’s recent trend of issuing guidance at the same time as implementing regulatory changes, but taken together with the State Department’s guidance, arguably represents the most substantial guidance ever issued by the two agencies in advance of implementation of newly enacted Congressional legislation.
For more details regarding the contents of the guidance, or with respect to any questions it raises, please contact one of the professionals listed below.
For more information, contact: Jeff Snyder, Carlton Greene, Cari Stinebower, Chris Monahan, Dj Wolff