Enforcement Release (FOV) - Mashreqbank psc scotland

Date issued: Nov. 09 2021

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TURBOFAC Commentary (1422 words)

Consolidated Comment on Items Related to the Mashreqbank Case

1) SUBSTANCE

From a substantive standpoint, the Mashreqbank FOV presents facts and a theory of legal liability that are fairly standard for enforcement actions of the genre. A non-U.S. person bank routed USD-denominated payments through the U.S. financial system—through one of its own NY-based branches and other NY-based correspondent banks—that U.S. persons themselves were prohibited from processing due to the then-in-force Sudan embargo. In so doing, the non-U.S. person bank “caused” the U.S. person banks to violate the SSR (at a minimum the service export prohibition of 538.205). Factual detail is relayed in the OFAC-issued enforcement release, as well as the agreements with other agencies referred to in the OFAC release (see Order to Cease and Desist (Federal Reserve) - Mashreqbank PSC and...