On Mar 21, 2025, at 5:03 PM,
[email protected] wrote:
Good afternoon XXXX –
Thank you for following up on this. After further discussions on the matter with our Office of the Chief Counsel, it appears that the appropriate course of action would be for CACIB NY to block the expired standby letter of credit and submit a report to OFAC accordingly. Please reach out if you have any additional questions!
Have a great weekend,
Beth
Elizabeth XXXX
Sanctions Compliance Officer
Office of Foreign Assets Control
U.S. Department of the Treasury
(202) 622-3241 | Mobile: (202) 377-9739
[email protected]
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From: [XXXXXXXXXXXXXXX]
Sent: Monday, January 27, 2025 4:58 PM
To: [XXXXXXXXXXXXXXX]@treasury.gov>
Cc: [XXXXXXXXXXXXXXX]
Subject: Request for Guidance on...
1) Contrast Centrifugal Casting Machine Co Inc v. American Bank & Trust Co, 966 F. 2d 1348 (10th Cir. 1992) (There, OFAC argued that a down payment in a bank account of the U.S. goods producer, that represented a down payment received in connection with an unfulfilled contract and paid pursuant to a letter of credit, was property in which the blocked customer had "ha[d] a property interest...because it was allegedly a contract payment made by [the blocked party], which [it] should recover because [the U.S. goods supplier] breached the contract." The court rejected the argument, finding that an “issuer's obligation to pay on a letter of credit is completely independent from the underlying commercial transaction between the beneficiary and the account party”.
Here, there is a question of whether blocked person has an “interest” in an expired letter...