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1276. On October 15, 2026, the Department of State designated the Banco Internacional de Comercio, S.A. (BICSA) pursuant to Executive Order (E.O.) 14404. Are foreign persons, including foreign financial institutions (FFIs), subject to sanctions risk for transacting with BICSA?
The U.S. government does not intend to target foreign persons, including FFIs, pursuant to E.O. 14404 for engaging in transactions ordinarily incident and necessary to the divestment from or the wind down of transactions involving BICSA, or any entity in which BICSA owns, directly or indirectly, a 50 percent or greater interest, through November 14, 2026. However, non-U.S. persons, including FFIs, should proceed with caution in any dealings with a party sanctioned under this authority. Actions to return assets to a sanctioned party or transfer them to another jurisdiction for potential use by the target could expose non-U.S. persons to significant sanctions risk.
Foreign persons unable to...
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1) Compare FAQ # 1254. This FAQ provides meaningful guidance concerning OFAC’s non-intent to consider “wind down” activities sanctionable even where such activities would not qualify for Cuba General License 1 if engaged in by a U.S. person. Query whether requests to OFAC for secondary sanctions comfort might more easily be addressed as “non-targeting postures” rather than guidance confirming that a given transaction does or does not qualify as a “significant transaction”. In the latter case, OFAC makes a legal determination that is arguably less meaningful than one-off “non-targeting postures”.