General Note on the Meaning and Significance of the Term “Act on Behalf Of”, as It Appears in Various Contexts

Last substantive commentary amendment:
Nov. 13 2024

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TURBOFAC Commentary (3466 words)

General Note on the Meaning and Significance of the Term “Act on Behalf Of”, as It Appears in Various Contexts

1) Background; Key Takeaways


The term “act on behalf of” (or “acting on behalf of”, “acted on behalf of”, etc.) is of significance in a variety of contexts in OFAC-administered sanctions regulations. In some contexts, the term is explicit in regulations, and in other cases the “act on behalf of” question is an intermediate one that is dispositive of a secondary legal question (e.g., whether a blocked person has an indirect interest in a transaction or whether a person is a “contractor” of some other person).

Below we discuss the various contexts in which the term “act on behalf” is of relevance to the scope and operation of OFAC-administered sanctions provisions. We find two consequential conclusions that are not otherwise explicitly articulated by...