Case No. ZI-537

Date issued: Apr. 19 2012

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TURBOFAC Commentary (502 words)

Notes:

1) As it relates to the genre of guidance letters issued to non-U.S. companies concerning activities appearing to be outside the scope of OFAC’s primary sanctions jurisdiction, Case No. ZI-537 is notable for two reasons.

2) PRIMARY SANCTIONS

Having a U.S. subsidiary does not render a non-U.S. person a “U.S. person” or otherwise subject to OFAC’s primary sanctions jurisdiction, provided that the actual transaction at issue has no U.S. nexus. (Compare Case No. IA-2016-329758-1; foreign entity is not a U.S. person where 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."). OFAC’s characterization of the law as it relates to the fact pattern is nonetheless notable:

“To the extent that no U.S. persons, including Aperta Inc., are involved directly or indirectly in the transaction...