Case No. IA-2016-329758-1

Date issued: Feb. 06 2019

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TURBOFAC Commentary (681 words)

Notes:

1) The Primary Sanctions Jurisdiction Determinations

The applicant here is a UK entity with various disclosed U.S. touchpoints, i.e. it "employs a small number of U.S. persons," "carries out ancillary activities in the United States" and "partners with U.S. universities in various ways." Nevertheless, OFAC concludes that the entity is not a " U.S. person as defined under section 560.314 of the ITSR" or a "U.S.-owned or -controlled foreign entity" for purposes of 560.215 of the ITSR, and accordingly, transactions of the applicant are no subject to U.S. jurisdiction so long as the specific transactions "do[] not involve U.S. persons or transactions involving the United States..." Compare Case No. ZI-537 (having a U.S. subsidiary does not make on a U.S. person). The conclusion here is perhaps not entirely shocking,...