OFAC Issues New General Licenses and FAQs for ...

OFAC Issues New General Licenses and FAQs for Humanitarian Aid to Afghanistan ... FAQ 928 clarifies that US sanctions on the Taliban and the ... Share ShareonFacebook ShareonTwitter Email OnSeptember24,2021,theUSDepartmentofTreasury’sOfficeofForeignAssetsControl(“OFAC”)issuedtwoGeneralLicenses—(i)GeneralLicense14,“AuthorizingHumanitarianActivitiesinAfghanistan”(“GL14”),and(ii)GeneralLicense15,“TransactionsRelatedtotheExportationorReexportationofAgriculturalCommodities,Medicine,MedicalDevices,ReplacementPartsandComponents,orSoftwareUpdatesinAfghanistan”(“GL15”)—to“supportthecontinuedflowofhumanitarianassistancetothepeopleofAfghanistanandotheractivitiesthatsupportbasichumanneedsinAfghanistan.” OFACalsopublishedfourrelatedFrequentlyAskedQuestions(“FAQs”)—FAQs928,929,930,and931—toprovideadditionalclarityonthescopeoftheseGeneralLicenses. OFACstatedthattheissuanceofGL14andGL15continuesthe“USgovernment’slongstandingpracticeofauthorizingtheprovisionofhumanitariangoodsandservicestoareasaffectedbyUSsanctions,”whileupholdingandenforcingUSsanctionsagainsttheTaliban,theHaqqaniNetwork,andothersanctionedentities. GL14authorizestheUSgovernment,non-governmentorganizations(“NGOs”),andcertaininternationalorganizationsandentities,aswellasthoseactingontheirbehalf,toengageintheprovisionofhumanitarianassistancetoAfghanistanorotheractivitiesthatsupportbasichumanneedsinAfghanistan. GL14alsoauthorizesUSpersonstoengageintransactionsoractivitiesthatareordinarilyincidentandnecessarytoauthorizedhumanitarianassistancetoorotheractivitiesthatsupportbasichumanneedsinAfghanistan. FAQ928clarifiesthatUSsanctionsontheTalibanandtheHaqqaninetworkdonotprohibithumanitarianassistanceinAfghanistansolongastheassistanceisauthorizedbyGL14. FAQ929defines“humanitarianassistancetoAfghanistan”and“otheractivitiesthatsupportbasichumanneedsinAfghanistan”inthecontextofGL14.GL15authorizescertaintransactionsrelatedtotheexportationorreexportationofagriculturalcommodities,medicine,andmedicaldevices,aswellasreplacementparts,components,andsoftwareupdatesformedicaldevicesasdefinedwithinGL15. GL15alsocoversthirdpartiespurchasingtheseitemsspecificallyforresaletoAfghanistan,subjecttocertainconditions. FAQ930clarifiesactivitiesandtransactionscoveredbyGL15. TheFAQsfurtherclarifythatGLs 14 and 15allownon-USpersonstoengageinorfacilitateauthorizedtransactionswithoutexposuretosanctionsundertheGlobalTerrorismSanctionsRegulations, 31CFRPart594,theForeignTerroristOrganizationsSanctionsRegulations, 31CFRPart597,or ExecutiveOrder13224,asamended. NeitherGL14norGL15authorizesanydebittoablockedaccountonthebooksofaUSfinancialinstitutionorfinancialtransfertotheTaliban,theHaqqaniNetwork,oranyentityowned50%ormorebyeithergroup.TheauthorsacknowledgetheassistanceofRyanOrangewiththisblogpost. Categories: FAQs OFAC OFACGeneralLicense 0 Author TerenceGilroy TerryGilroyisapartnerintheNewYorkofficeofBakerMcKenzieandamemberoftheComplianceandInvestigationsPracticeGroup.PriortojoiningtheFirmin2018,TerryservedasAmericasHeadoftheFinancialCrimeLegalfunctionatBarclays.TerryadvisesbusinessesandindividualsonwhitecollarandfinancialcrimeissuesandhassignificantexperienceconductinginvestigationsrelatingtocompliancewiththeUSForeignCorruptPracticesAct(FCPA)andrelatedbriberyandcorruptionstatutes,economicsanctionsregulationsasadministeredbytheUSDepartmentoftheTreasury'sOfficeofForeignAssetsControl(OFAC),andtheBankSecrecyActandrelatedanti-moneylaundering(AML)regulationsandstatutes.TerryspentsixyearsonactivedutyintheUnitedStatesArmyasaFieldArtilleryofficer. Website Author EunkyungKimShin Eunkyungadvicesclientsonvariousregulatorycomplianceandtradeissues,concentratingontheUSexportcontrolssuchastheExportAdministrationRegulations(EAR)andInternationalTrafficinArmsRegulations(ITAR),economicandtradesanctions,UScustomsandimportlaws,theUSForeignCorruptPracticesAct(FCPA),andforeignanti-briberylaws. Website RelatedPosts USGovernmentIssuesCambodiaBusinessAdvisoryonHigh-RiskInvestmentsandInteractions;OFACSanctionsCambodianGovernmentOfficials November29,2021 OFACIssuesFirstRoundofSanctionsUnderEthiopiaSanctionsProgramandNewGeneralLicense November23,2021 StateDepartmentCodifiesPolicyofDenialforEthiopiaandEritrea November2,2021