Cyber General License (No. 1B) - Authorizing Certain Transactions with the Federal Security Service (amended March 2, 2021)

Date issued: Mar. 02 2021

TURBOFAC Commentary (277 words)

Notes:

1) See FAQ 501, FAQ 502, FAQ 503 and FAQ 504, each dealing with specific elements of the GL. FAQ # 504 is notable for its confirmation that the Berman Amendment exemption for travel applies to the Cyber-related Sanctions Regulations, even though it contains no "exempt transactions" provision. FAQ # 504 also confirms that the travel exemption applies to entities sanctioned pursuant to Sec. 224 of the CAATSA, as is the case with the Russian FSB.

2) GL originally issued 2017, with a non-substantive amendment in 2018 to include CAATSA as an authority for the issuance of the GL. The GL was further amended on March. 2, 2021, to account for the designation of the FSB pursuant to the WMDPSR.

3) Compare with Ukraine General License Number 11 - ​Authorizing Certain Transactions With FAU Glavgosekspertiza Rossii (December 20, 2016), authorizing limited permitting and compliance-related transactions with a state-owned entity designated as an SDN. As there, this GL has no expiration date.

4) By its terms, the GL is not limited to activities in which a U.S. person is a party to an underlying transaction. This means that U.S. persons may engage in ancillary transactions that would be subject to the otherwise-applicable prohibitions, even if such activities pertain to a transaction involving no U.S. person. For example, the U.S. person “facilitation” of transactions between non-U.S. person subsidiaries and the FSB is authorized, provided that they otherwise fall within the scope of the GL. Compare e.g. FAQ # 661, comments thereto. See also FR Notice Explaining OFAC's Implementation of Sec. 218 of the TRA (77 FR 75849, Dec. 26, 2012).