Civil Enforcement Information - Atradius Trade Credit Insurance, Inc.

Date issued: Aug. 07 2019

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TURBOFAC Commentary (1562 words)

Notes:

1) BLOCKED DEBT GENERALLY

This appears to be the first ever reported enforcement action resulting from the assignment and/or collection of a debt in which a blocked person has an interest.

When a blocked person is either a creditor or a lender in connection with a debt, the blocked person has an "interest" in that debt, meaning that all activities with respect to the debt constitute a "dealing in" property in which a blocked person has an "interest." This means that the payments on the debt cannot be made (when the blocked person is lender), payments cannot be accepted (when the blocked person is the creditor), and the debt cannot be refinanced or transferred to a third party. In addition, OFAC evidently considers that "negotiation" with respect to the debt, e.g. negotiating the refinancing of the debt or transfer of the debt, is a...