General Note on the Establishment of “Control” of an Entity by Irregular Means (System Ed. Note)

Last substantive commentary amendment:
Jan. 30 2025

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TURBOFAC Commentary (1942 words)

General Note on the Establishment of “Control” of an Entity by Irregular Means (System Ed. Note)

*[NOTE: For the analysis below, the term “Covered Person” refers to persons whose ownership or control over an entity has consequences for sanctions provisions (e.g. U.S. persons for § 515.329(d) of the CACR), and “Subject Entity” refers to the entity with respect to which the “owned or controlled” analysis is performed (e.g. a foreign-incorporated entity for § 515.329(d) of the CACR)].

OFAC's explicit statements on the criteria it evaluates to determine whether a set of Covered Persons “controls” a Subject Entity have generally been limited to the common ways through which control is obtained—i.e. through equity ownership, representation on boards of directors and similar governing bodies, and through occupation of key management positions—while noting that the “control”...