OFAC FAQ (Removed) # 551 - Venezuela Sanctions

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 (184 words)

Notes:

Note: this FAQ and comments thereto were posted/written prior to the blocking of the Government of Venezuela pursuant to 13884. Neither the FAQ nor the comment have been updated in light of that development.

1) The issuance of EO 13827 (see FAQ 564) has rendered this FAQ moot because the EO explicitly prohibits dealings in the digital currency discussed, but the FAQ shows the extent to which OFAC is willing to stretch the definition of "new debt" in order to achieve the objectives of EO 13808.

2) Query whether this rationale may be applied to any sort of financial instrument that involves provisions obligating the issuer to offer conversion of the instrument into something else at a future date. Most such instruments will fall within the scope of the terms "debt" or "equity" even apart from the conversion provision, but as this FAQ illustrates, not all.

3) Ultimately a Venezuelan digital currency was issued, but without the obligations contemplated in this FAQ.

* See generally General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)

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OFAC FAQ (Removed) # 551 - Venezuela Sanctions

TURBOFAC Commentary (184 words)