OFAC FAQ (Current) # 400

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (747 words)

Notes:

1) The wording of this FAQ is vague and has the effect of making the standard blocking prohibition appear to be both broader and narrower than OFAC has interpreted it to be.

On one hand, OFAC says: "for example, enter[ing] into contracts that are signed by a blocked individual" would be prohibited. The bottom line of that statement reflects OFAC's longstanding practice (see FAC NO. 142787 (1994)), but recently, at least as of the release of Civil Enforcement Information - ExxonMobil Corporation (2017), OFAC has taken the position that executing documents falling short of having the status of "contract," a term which is important as it is a threshold for what constitutes "property" within the meaning of blocking regulations, also violates blocking prohibitions because the execution of the document constitutes a dealing in "services" of the blocked person. “Services,” like “contracts” are a form of...

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OFAC FAQ (Current) # 400 - 50% Rule

TURBOFAC Commentary (747 words)