Case No. IA-2017-340424-1

Date issued: Oct. 23 2017

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TURBOFAC Commentary (939 words)

Notes:

1) Guidance letter represents an extremely expansive interpretation of the scope of 560.206(a) of the ITSR, and a narrow interpretation of the legal services GL (560.525) that U.S. law firms (including seasoned sanctions lawyers) could easily overlook. This is discussed further below, but first note that, consistent with Civil Enforcement Information (FOV) - B Whale Corporation, OFAC states categorically that where a entity is “registered in the Marshall Islands and would generally be considered a non-U.S. person for purposes of the ITSR, when a non-U.S. person files for bankruptcy in a U.S. court, that non-U.S. person becomes a U.S. person for the purposes of the ITSR.” Here, OFAC is taking the position that the entity in its entirety is a “U.S. person,” and this transformation takes...