Case No. ZI-2016-329092-1

Date issued: May. 18 2017

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TURBOFAC Commentary (188 words)

Notes:

1) Compare Case No. BEL-2014-313440-1 and Case No. BEL-2014-310852-1. There, as here, OFAC addresses a case where a non-U.S. entity seeks to engage in transactions that would be prohibited for U.S. persons, where the non-U.S. entity is owned by a U.S. entity. In this case, the non-U.S .entity is acknowledged as being under the “control” of U.S. persons through “ownership structure and board composition.” Even then OFAC’s guidance indicates that the non-U.S. entity being controlled by U.S. persons is insufficient to establish jurisdiction; what matters is whether “U.S. persons are involved in the transaction,” i.e. the specific sanctions-implicating transaction, rather than the general direction of the non-U.S. entity at issue. As is the case with the Belarus-related guidance letters, there is no indication that the private equity fund that owned the non-U.S. person would have needed to ensure that any profits derived from sanctions...