OFAC FAQ (Current) # 401

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 (483 words)

Notes:

1) Note that there is a difference between the notion of "dealing indirectly" in blocked property and dealing directly in property in which a blocked person has an "indirect interest." Both are prohibited independent of one another. Here, the objective is to identify "indirect interests" in property, which once identified cannot be dealt in, even indirectly (i.e. facilitation, transactions through intermediaries, etc.)

2) Consult the Research System for enforcement actions resulting from a lack of due diligence concerning entities owned 50% or more by blocked persons, including enforcement actions based on foreign banks "causing" U.S.-person banks to process transactions in which SDNs had an indirect interest through entities in which they owned stakes of 50% or greater. See e.g. Barclays Bank Plc (Second action) (2016).

3) The concept of "indirect ownership" that OFAC applies varies significantly from the...

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OFAC FAQ (Current) # 401 - 50% Rule

TURBOFAC Commentary (483 words)