OFAC Secondary Sanctions Enforcement - Kunlun Bank (China) and Elaf Bank in (Iraq)

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.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (143 words)

Notes:

First and only correspondent account-focused sanctions on a non-U.S. bank under secondary sanctions legislation. As of 12/2020, Bank of Kunlun is the only entity on the "Part 561" (IFSR) list (now the "CAPTA List.")

Note that the 2007 "Banco Delta Asia" [1] and 2017 "Bank of Dandong" [2] cases, often discussed alongside these cases as an example of secondary sanctions enforcement against a non-U.S. bank, were actually an enforcement actions by FinCEN under Section 311 of the PATRIOT Act. Today the activity for which Banco Delta Asia and Bank of Dandong were cut off from the U.S. financial system would be secondarily sanctionable under 510.210 of the .

[1] See https://www.fincen.gov/sites/default/files/federal_register_notices/2017-11-08/Dandong%20Final%202017-24238.pdf
[2] See https://www.fincen.gov/sites/default/files/federal_register_notices/2017-11-08/Dandong%20Final%202017-24238.pdf

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Secondary Sanctions Enforcement Announcement - Kunlun Bank (China) and Elaf Bank in (Iraq)

TURBOFAC Commentary (143 words)