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931. Do non-U.S. persons risk exposure to U.S. sanctions for engaging in transactions that U.S. persons would be authorized to engage in under Afghanistan-related General Licenses (GLs) 14, 15, 16, or 20?
No. Non-U.S. persons may engage in or facilitate transactions that would be authorized for U.S. persons under Afghanistan-related GLs 14, 15, 16, 17, 18, 19 or 20without exposure to sanctions under the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), the Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part 597 (FTOSR), or Executive Order (E.O.) 13224, as amended.
For example, activity that would be authorized by GLs 14, 15, 16, 17, 18, 19, or 20 if engaged in by a U.S. person would not be considered “significant” for the purposes of a secondary sanctions determination under E.O. 13224, as amended. Accordingly, foreign financial institutions do not risk exposure to correspondent and payable-through account...
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1) FAQ Amended on 2-25-2022 to add non-substantive references to GTSR/FTOSR General License 20.
2) This FAQ continues OFAC's recent trend of explicitly stating that transactions that are permissible for U.S. persons are not transactions that would (even if they theoretically could) result in the imposition of sanctions on non-U.S. persons whose activities do not otherwise have a U.S. nexus. OFAC makes specific reference to the "significant transaction" standard, but the guidance also applies to the "material assistance" derivative designation criteria found in the GTSR and EO 13224, as amended. Compare FAQ # 867 (Syria secondary sanctions), FAQ # 867 (certain Iranian SDGTs), and FAQ # 545 (Russia-related secondary sanctions). Refer generally to General Note on "Counterfactual Secondary Sanctions and Derivative...