General Note on Transactions by U.S. Person Agents, Employees, Subsidiaries and Affiliates of “Licensees,” and With Persons Related to Sanctioned Persons, as Transactions “Ordinarily Incident” to Underlying Authorized Transactions

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TURBOFAC Commentary (4006 words)

General Note on Transactions by U.S. Person Agents, Employees, Subsidiaries and Affiliates of “Licensees,” and With Persons Related to Sanctioned Persons, as Transactions “Ordinarily Incident” to Underlying Authorized Transactions

1) BACKGROUND

A consistently tricky interpretive question that cuts across sanctions programs involves the degree to which an authorization applicable to a given U.S. person licensee extends to other persons associated with that licensee. “Other persons,” for the purposes of this Note, can include employees, agents, contractors, subcontractors, affiliates, and other persons “acting on behalf of” the licensee in the context of any given licensed transaction.

A related question is the degree to which an authorization that covers dealings with a given sanctioned person extends to employees, agents, contractors, subcontractors, affiliates, and other persons “acting on behalf of” the sanctioned person. A question downstream of that is whether, in the event that dealings with “employees”...