General Note on "Control" and "Otherwise Controlled" within the Meaning of the Sanctions Regulations (System Ed. Note)

Last substantive commentary amendment:
Oct. 20 2023

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TURBOFAC Commentary (5128 words)

General Note on "Control" and "Otherwise Controlled" within the Meaning of the Sanctions Regulations (System Ed. Note)

1) BACKGROUND

With respect to countries sanctioned pursuant to comprehensive, IEEPA-based embargoes, OFAC's blocking regulations are generally set up such that, in addition to the prohibitions on importing and exporting goods or services to a given destination, the government of that destination is treated as blocked. A typical "blocked government" consists of:

"entity owned or controlled, directly or indirectly, by the foregoing, including any corporation, partnership, association, or other entity in which the [a sanctioned] Government [] owns a 50 percent or greater interest or a controlling interest, and any entity which is otherwise controlled by that government" (see e.g. 510.311 of the NKSR). The governments of Iran and Syria are also...