Case No. SU-3762

Date issued: Jun. 22 2011

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TURBOFAC Commentary (201 words)

Notes:

1) This letter addresses a request from a Chinese entity that had a wire transfer blocked due to there being an interest of Bank of Khartoum (a Government of Sudan entity located in Sudan). OFAC de-listed Bank of Khartoum on April 28, 2011 (https://www.federalregister.gov/documents/2011/06/09/2011-14287/unblocking-of-blocked-persons-pursuant-to-executive-order-13067-and-executive-order-13412 / https://www.wsj.com/articles/BL-CCB-4339) (apparently due to severance of Government of Sudan ownership) but thereafter maintained the comprehensive embargo on Sudan for several years, where the provision of all services to Sudan was prohibited. The guidance letter is notable insofar as it implies that dealing in funds in which a Sudanese bank has an interest, i.e. by returning them to the Chinese entity, does not necessarily constitute a transaction that was prohibited under the otherwise very broad non-blocking provisions of the then-in-force SSR (for example provision of a...