OFAC FAQ (Current) # 1099 - Venezuela Sanctions

Date issued: Nov. 26 2022

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TURBOFAC Commentary (136 words)

Notes:

1) This FAQ continues OFAC's trend of explicitly stating that transactions authorized for U.S. persons are not transactions that could result in the imposition of sanctions on non-U.S. persons. While not putting it in these explicit terms, the FAQ means that, for example, OFAC will not consider a person to "materially assist" PDVSA or otherwise "operates in" the Venezuelan oil sector where the activities at issue would be authorized by Venezuela General License 41 if they were engaged in by a U.S. person. Both of those are activities that could, theoretically, result in a "derivative designation" pursuant to EO 13850. Compare FAQ # 914 (same but for Venezuela General License 40).

2) Refer generally to General Note on "Counterfactual Secondary Sanctions and Derivative Designation Safe Harbors" in Certain OFAC Guidance and FAQs (System Ed....