Enforcement Release: An Unnamed Individual (20)

Date issued: Dec. 18 2024

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TURBOFAC Commentary (776 words)

Notes:

1) This enforcement action continues the trend of OFAC penalizing corporate officers for activities taken within the scope of their employment. Compare Enforcement Release: Murad, LLC and Former Senior Executive of Murad, LLC (Individual).

2) From a legal basis standpoint, there are a few notable aspects of this enforcement action. It is the first that involves a U.S. person employee working for an entity of which a blocked person is CEO (but apparently not the owner). Compare FAQ # 398 (an entity controlled, but not owned, by a blocked is not blocked pursuant to the 50% Rule). Accordingly, is not categorically prohibited for the U.S. person employee to continue working for the company, but it could not engage in transactions in which the SDN CEO had an interest. Here, OFAC points specifically to six payments that were executed...