Case No. Venezuela-2021-372906-1

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (241 words)

Notes:

1) Venezuela 3H authorized “all transactions related to, the provision of financing for, and other dealings in [covered] bonds…authorized, provided that any divestment or transfer of, or facilitation of divestment or transfer of, any holdings in such bonds must be to a non-U.S. person.” The applicant, who is clearly a U.S. person given the lack of any other identified U.S. nexus (the relevant banks are in Italy) and reference to "transfer of interests to other U.S. persons," sought authorization for the “movement of bonds” on the GL 3H annex from “from a bank account in Italy under [Applicant’s] sole control to an account in a different bank in Italy also under [Applicant’s] control.” OFAC concludes that “[t]the current and destination accounts are under [Applicant’s] exclusive control and the proposed activity involves only a custodial change, but no transfer of interests to other U.S. persons, as it would not alter, directly or indirectly, any right or interest with respect to the property; nor would it result in the creation of new instruments. Accordingly, the movement of the bonds appears to be authorized under GL3H and requires no further authorization from OFAC.” That this conclusion rests upon the otherwise broad definition of the boilerplate definition of “transfer” in the VSR makes it highly notable, because the implication is that property can change custodians (or physical locations) without there being a “transfer” thereof. Contrast LICENSE No. MUL-2017-349393-1.

Welcome!

Welcome!

Case No. Venezuela-2021-372906-1

TURBOFAC Commentary (241 words)