Enforcement Release: Swedbank Latvia AS

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 (734 words)

Notes:

1) IP ADDRESSES AND BEING "IN" A SANCTIONED DESTINATION

From a legal basis standpoint, this is a straightforward example of a non-U.S. bank "causing" a U.S. person processing bank to export financial services to Crimea, which includes the exportation of any service to a person in or ordinarily resident in Crimea. Consistent with typical practice, OFAC regards evidence of services being provided to person with a sanctioned destination IP address as evidence, effectively irrebuttable, that such person was located "in" the sanctioned destination at the time the services were provided. Compare Wells Fargo Bank, N.A. (1st action), suggesting that the violation was based on the failure to use IP addresses to “identify registered users located in Iran”.

2) ABSENCE OF REFERENCE

OFAC cites violations of Section 6(a) of

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Enforcement Release: Swedbank Latvia AS

TURBOFAC Commentary (734 words)