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Sanctions Advisory for the Maritime Industry, Energy and Metals Sectors, and Related Communities

Date issued: May. 15 2020

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Department of the Treasury    Department of State    United States Coast Guard


Sanctions Advisory for the Maritime Industry, Energy and Metals Sectors, and Related Communities


Issued: May 14, 2020


Title:    Guidance to Address Illicit Shipping and Sanctions Evasion Practices


The U.S. Department of State, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), and the U.S. Coast Guard are issuing this advisory to provide those engaged or involved in trade in the maritime industry and energy and metals sectors with further information and tools to counter current and emerging trends related to illicit shipping and sanctions evasion. This advisory reflects the U.S. government’s commitment to work with the private sector to prevent sanctions evasion, smuggling, criminal activity, facilitation of terrorist activities, and proliferation of weapons of mass destruction (WMD), with a focus on Iran, North Korea, and Syria. Combined with Annexes A and B, this advisory updates and expands on the North...

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TURBOFAC Commentary (398 words)

Notes:


1) Like the many other sanctions evasion-related "advisories"[1] that OFAC produces—alone as well as in conjunction with other agencies—this advisory provides little if anything in the way of guidance concerning the scope and operation of the laws that OFAC administers. However, the document does provide detailed explanations as to what OFAC's due diligence expectations are in the context of primary sanctions prohibitions, secondary sanctions provisions and "derivative designation" criteria alike.


To the degree that secondary sanctions provisions attach upon determinations that a foreign person has "knowingly" engaged in certain conduct, the document is important insofar as it lays out the diligence expectations that will apply to the determination of whether conduct was engaged in "knowingly" (i.e. where a person "knows or should have known" about the conduct). 


The same is true of the primary sanctions context, where even in the context of sanctions prohibitions that theoretically apply on a "strict liability"...