Case No. BEL-147
[ ]
Dunel Testing Inc.
222 Third Street, Suite 2241 Cambridge, MA 02142
Dear [ ]
This re ponds to your letter of January 16, 2012, to the Department of the Treasury's Office of Foreign Assets Control (“OFAC”), requesting authorization to conduct transactions with an entity in Belarus. [ ]. You request authorization to export two testing equipment devices for insulation and flammability quality control to [ ].
On June 16, 2006, President Bush issued Executive Order 13405 (“E.O. 13405”), “Blocking Property of Certain Persons Undermining Democratic Processes or Institutions in Belarus,” in response to actions and policies of certain members of the Government of Belarus and other persons to undermine Belarus’ democratic processes or institutions. E.O. 13405 blocks all property and interests in property that are in the United States or that hereafter...
Case No. BEL-131 and Case No. BEL-147 are similar guidance letters interpreting the 50% rule as it existed in 2012.
OFAC initially published its 50% rule guidance in 2008 [1]. It amended that guidance in 2014. The only substantive difference between the 2014 version and the 2008 version is that the 2014 version specifies that the "50% or greater" applies "in the aggregate," such that if one or more SDNs own a 50% or greater interest in an entity, it is blocked.
Notably, both versions of the guidance contain the following paragraph, except that “in which one or more blocked persons” read “a blocked person” in 2012.
U.S. persons are advised to act with caution when considering a transaction with a non-blocked entity in which one or...