OFAC “Derivative Designation” Notice - Mid Oil Asia; Singa Tankers; Siqiriya Maritime; Ferland Company Limited; Vitaly Sokolenko

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.

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TURBOFAC Commentary (245 words)

Notes:

1) Refer to Introductory Note Common to all Derivative Designation Notices Included in the Research System (System Ed. Note). That note explains the specific criteria used for determining which designation notices are included.

2) Five were entities designated for providing "material support" to the National Iranian Tanker Company, an Iranian . These designations were made pursuant to 13645, Sec. 2(a)(i), which implemented Section 1244 of IFCA and imposed additional sanctions on Iran. That EO was eventually revoked as part of the , and upon the withdrawal from the JCPOA, those same sanctions were reimposed by EO 13846, Sec. 1(a)(iii).

In spite of the fact the sanction was imposed pursuant to a provision implementing --which is generally referred to as a "secondary sanctions" statute--OFAC would not consider this to be a "secondary sanctions" enforcement action, as the "material assistance" designation criterion is not referred to as a "secondary sanction." In practice, however, derivative designation criteria often operate in a manner similar to secondary sanctions. See General Note on Secondary Sanctions and “Derivative Designation” Criteria; Identification of the Gap Between the Theoretical and Practical Scopes of Authorities Targeting Transactions with no U.S. Nexus; Enforcement Risk Management (System Ed. Note).

3) Refer to section 2(b)(i) of the comments to Case No. IA-2018-357507-1, concerning OFAC’s apparent reluctance to designate non-U.S. persons for transactions sanctionable solely as a result of sections 1(a)(iii)(A), 1(a)(iv)(C) or 2(a)(ii) of EO 13846 (or subsection 1244(c)(2)(C)(iii) of IFCA).

Welcome!

Welcome!

Notable "Derivative" Designations - Mid Oil Asia; Singa Tankers; Siqiriya Maritime; Ferland Company Limited; Vitaly Sokolenko

TURBOFAC Commentary (245 words)