General Note Common to 596.503, 596.504, and 596.505; General Note on the TLGSR and Their Current Practical Effect

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TURBOFAC Commentary (1095 words)

Notes Common to 596.503, 596.504, and 596.505; General Note on the TLGSR and Their Current Practical Effect

1) BACKGROUND

The TLGSR have a quirky history and relationship with other sanctions programs, much of which is not apparent from the text of the TLGSR regulatory text itself.

The TLGSR directly implement a section of the AEDPA that prohibited ("[e]xcept as provided in regulations issued by the Secretary of the Treasury), all U.S. persons from engaging in a financial transaction with the government of a country designated under section 6(j) of the Export Administration Act, i.e. those countries on the State Department's State Sponsors of Terror list.

Immediately upon implementing the statute, OFAC essentially nullified any effect it might have had with respect to listed countries that were...