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Case No. MUL-2013-304318-1
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Dubai, United Arab Emirates
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Dear Mr. [ ]:
This is in response to your request dated April 14, 2013, and additional correspondence submitted on September 26, 2013 (the "Application"), to the Office of Foreign Assets Control ("OFAC"), on behalf of Flemingo International Limited ("Flemingo"), requesting interpretive guidance on the applicability of OFAC sanctions regulations to Flemingo's diplomatic duty free business in Cuba, Iran, Sudan, and Syria, which are countries subject to OFAC sanctions. In your Application, you explain that U.S. investors hold non-convertible preferential shares (a debt equivalent) (the "Shares") in the company and do not have ownership interests in the company.
Based on information otherwise available to OFAC, it appears that Flemingo is neither organized under the laws...
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1) This guidance letter, indispensable on the subject of "indirect financing" (see generally General Note on “Indirect Financing,” or Investments in Third Country Companies that do Business with Sanctioned Parties), stands for a number of key propositions that accord with OFAC's general practice but are not, as of 9/2024, the subject of formal guidance that operates in an across-the-board fashion.
The applicant here is a non-U.S. person entity that operates "duty free" stores, some of which are located in comprehensively sanctioned jurisdictions. At the time the guidance request was made, each of Cuba, Iran, Syria and Sudan were comprehensively embargoed. In each case "new investment" in the relevant jurisdiction was prohibited, as was the provision of any service "to" the jurisdiction and the facilitation of a non-U.S. persons' new investment or provision of services to such jurisdiction.
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