OFAC FAQ (Current) # 1106 - 12/20/22 Regulatory Amendments

Date issued: Dec. 20 2022

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TURBOFAC Commentary (889 words)

Notes:

1) “ORDINARILY INCIDENT”

This FAQ provides important guidance concerning the 100+ GLs implemented into OFAC’s regulations on 12-21-22. On 12-21-22, OFAC published two FR notices implementing, in virtually all sanctions programs that did not already have them, “GLs related to: (i) the official business of the U.S. government, (ii) official business of certain international organizations and entities, (iii) certain humanitarian and other specified activities by nongovernmental organizations (NGOs), and (iv) the provision of agricultural commodities, medicine, medical devices, replacement parts and components, or software updates for medical devices for personal, non-commercial use.”

[1] https://web.archive.org/web/20221220195513/https://home.treasury.gov/system/files/126/usg_io_official_business_regulations_amendment.pdf and https://web.archive.org/web/20221220181638/https://home.treasury.gov/system/files/126/humanitarian_standardization_regulations_amendment_ngo_ag_med.pdf

With this FAQ, OFAC implies that funds transfers are authorized as “ordinarily incident” to underlying transactions authorized by the GLs. This is not particularly newsworthy, but it is also notable that OFAC says that “U.S. financial institutions may operate accounts… for...