General Note on the Implications of OFAC’s Blocking of the Russian National Settlement Depository (NSD) (System Ed. Note)

Last substantive commentary amendment:
Nov. 24 2024

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TURBOFAC Commentary (4031 words)

General Note on the Implications of OFAC’s Blocking of the Russian National Settlement Depository (NSD) (System Ed. Note)

1) BACKGROUND
a. The NSD Generally
b. The NSD and “Type C” Accounts
c. OFAC’s Blocking of the NSD and Related General Licenses; Initial Silence on the Key “Interest” Question
d. Relevant Aspects of the EU and UK Approaches
e. Russian Presidential Decree No. 840

2) THE EXPIRATION OF GLS 99A AND 100A, FAQ # 1197
a. RPPR Timing
b. Possession or Control
c. Treatment of Dividends and Income “Received Via” the NSD
d. “Are Held At”
e. “Evade or Avoid”
f. Null and Void Transfers

3) A SIGNIFICANT LIST OF UNANSWERED QUESTIONS AND POTENTIALLY UNINTENDED CONSEQUENCES

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[11-21-24 update. OFAC amended FAQ # 1197 to add the final paragraph, noting that it had “designated more than 40 local Russian registrars...