OFAC FAQ (Current) # 1102 - Global Magnitsky Sanctions

Date issued: Dec. 09 2022

Last substantive commentary amendment:
Jun. 15 2023

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TURBOFAC Commentary (724 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" the blocked persons where the activities at issue would be authorized by the relevant GLs if they were engaged in by a U.S. person. Such assistance could, theoretically, result in a "derivative designation" pursuant to EO 13818. FAQs of this genre are very common as of the date of issuance. The FAQ also confirms, as have others similarly structured, that U.S. persons (here banks) can process transactions of non-U.S. persons that are ordinarily incident to underlying wind-down transactions that would be authorized for U.S. persons. Refer generally to