OFAC FAQ (Current) # 969 - Russian Harmful Foreign Activities Sanctions

Date issued: Feb. 24 2022

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TURBOFAC Commentary (277 words)

Notes:

1) The FAQ appears to confirm that an entity is subject to the CAPTA Directive, even if it does not actually appear on the NS-MBS List, but provided that it meets the definition of "foreign financial institution". In other words, entities can be subject to the CAPTA directive "by operation of law," as is the case with blocked persons owned 50% or greater by blocked persons.

2) The FAQ connects the dots between the 50% rule and the term "property or interests in property," which, when it appears, generally indicates applicability of the 50% rule.

3) The definition of "correspondent account " tracks the definition found in secondary sanctions programs: 31 CFR § 510.303 - Correspondent account; 31 CFR § 561.306 - Correspondent account. Note that the limitation of...