OFAC Enforcement - Clearstream Banking, S.A.

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) This is the first case to establish that the provision of passive "custodial services" can constitute an "export" of a service from the U.S. to the location of the ultimate beneficiary, when, as here, a U.S. person is "caused" to hold securities for a non-U.S. customer that in turn uses an omnibus account to hold securities in which a sanctioned party has an interest.

2) Prior to the 2012 issue of 13599 (blocking all property and interests in property of the Government of Iran), the CBI was not a blocked party. Nevertheless, the sanctions in place at the time were such that the Government of Iran and all entities owned or controlled by the Government of Iran were ineligible to receive services from the U.S (560.410(b)), either directly or indirectly. Clearstream "caused" (560.203)...

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Civil Enforcement Information - Clearstream Banking, S.A.

TURBOFAC Commentary (734 words)