Civil Enforcement Information - Genesis Asset Managers, LLP

Date issued: May. 21 2012

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TURBOFAC Commentary (883 words)

Notes:

1) This enforcement action was issued prior to the extension of the ITSR's jurisdiction to non-U.S. persons organized under the laws of foreign countries.

2) There are a few potential theories of liability here. First note that, pursuant to the agreement between GAM US and GIM UK, GAM US would be "approving," even if passively, the transactions GIM UK undertakes on behalf of GEMF. Therefore, GAM US could be seen as facilitating (560.208 and/or 560.206) transactions involving Iran entities, but the question is what particular underlying prohibited activities would be facilitated here.

In this case, OFAC might consider the approval to invest in shares of "a Cayman Islands company that invests exclusively in Iranian securities" to constitute a facilitation of the Cayman company's dealing in Iranian-origin services in connection with the purchase...