1032. On April 20, 2022, Transkapitalbank (TKB) was designated pursuant to Russia-related Executive Order 14024. Can U.S. persons continue to engage in Afghanistan-related transactions with TKB?
Yes. The Office of Foreign Assets Control (OFAC) issued two general licenses (GLs) related to TKB, which allow U.S. persons to engage in certain transactions involving TKB for specified time periods.
Russia-related GL 28 authorizes U.S. persons to engage in certain transactions involving TKB, or any entity in which TKB owns, directly or indirectly, a 50 percent or greater interest, that are ultimately destined for or originating from Afghanistan through 12:01 a.m. eastern daylight time, October 20, 2022.
GL 28 also authorizes U.S. financial institutions to operate correspondent accounts on behalf of TKB, or any entity in which TKB owns, directly or indirectly, a 50 percent or greater interest, provided such accounts are used solely to effect transactions ultimately destined for or originating from Afghanistan that are authorized by the GL. This means that U.S. financial institutions are authorized to debit or credit correspondent accounts maintained for TKB, provided these debits or credits are for payments that are ultimately destined for or originating from Afghanistan.
In addition, through 12:01 a.m. eastern daylight time, May 20, 2022, Russia-related GL 29 authorizes certain transactions ordinarily incident and necessary to the wind down of transactions involving TKB, or any entity in which TKB owns, directly or indirectly, a 50 percent or greater interest, regardless of whether such transactions are related to Afghanistan. GL 29 does not authorize debits to blocked accounts. For more information, please see FAQ 990.
For further information on relevant authorizations, exemptions, and public guidance, please review OFAC’s Fact Sheets, “Preserving Agricultural Trade, Access to Communication, and Other Support to Those Impacted by Russia’s War Against Ukraine” and “Provision of Humanitarian Assistance to Afghanistan and Support for the Afghan People.”
Date Released
May 5, 2022
1) Read in conjunction with Russia-related General License 28 and Russia-related General License 29. The FAQ appears aimed at confirming (albeit implicitly) that debits to blocked accounts can be made in the correspondent account context. This is an important FAQ, because it clarifies that debits to blocked accounts can, sometimes, be implicitly authorized by a GL, even with respect to a bank blocked pursuant to EO 14024 and notwithstanding FAQ # 990).