OFAC FAQ (Current) # 956 (PDF contans all versions)

Date issued: Feb. 24 2022

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TURBOFAC Commentary (440 words)

[2-24-22 update - amendments made to the FAQ to confirm applicability to the Russian Harmful Foreign Activities (Russia) sanctions program (Directive 3)]

Notes:

1) As noted in the FAQ, the London Interbank Offered Rate (“LIBOR”)— an average of what banks say they would charge to lend to one another that is/was used as a reference rate for many debt instruments—was discontinued. The result of this is a need to amend certain debt instruments that have LIBOR as a reference rate with no alternative.

The FAQ is notable for a few reasons. First, OFAC issues the FAQ in connection with the Belarus, Russia (SSI Directives) Venezuela-related sanctions prohibitions that have “new debt” prohibitions. It is done in a way that lends further support to the view that the interpretation of “new debt” is, unless otherwise specified, harmonious across programs. (We are aware of no instance in which OFAC...