OFAC FAQ (Current) # 906 - COVID-related General Licenses

Date issued: Jun. 14 2023

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TURBOFAC Commentary (692 words)

Notes:

1) U.S. Person Involvement in Underlying Transactions Unrelated to the U.S.

All three COVID GLs authorize “all transactions” related to specified COVID-related activities; they do not state on their faces that the GLs authorize transactions by “U.S. persons.” In FAQ 906, OFAC confirms “[b]oth U.S. persons and non-U.S. persons whose activities are within U.S. jurisdiction — including exporters, nongovernmental organizations, international organizations, and financial institutions — may rely upon the authorizations in these COVID-19-related GLs provided they meet the applicable conditions.” This statement confirms that U.S. persons may “facilitate” or otherwise play an ancillary part in any transaction described by the GLs, even if the transaction does not otherwise involve a U.S. person. Compare FAQ # 883 (making a similar statement with respect to payment processing). The question is whether a person’s activities are “are within U.S. jurisdiction,” not whether they are facilitating a...