OFAC FAQ (Current) # 398 - 50% Rule

Date issued: Aug. 11 2020

You've hit a wall. Sign in if you have an account, learn more about TURBOFAC and subscription options, or purchase access to the text of the document on this page, the native .pdf file, and the associated TURBOFAC original commentary.

TURBOFAC Commentary (497 words)

Notes:

1) Concerning the proposition that entities "controlled" by SDNs are not blocked without an affirmative determination, see e.g. OFAC SpaceX Litigation Correspondence (2014) and OFAC # 368. In dealing with such entities, one must avoid "indirect dealings" with SDNs.

2) Apart from the fact that all Cubans are blocked under the CACR (unless unblocked by GL), note that entities owned or controlled by the blocked governments of Iran, North Korea and Syria are also blocked by operation of law, i.e. without an affirmative determination. See e.g. Case No. IA-2013-302020-1, analyzing the question of whether an entity is "controlled" by the GOI.

3) Although OFAC had not stated this clearly until relatively recently, and a civil enforcement action had not been based...