OFAC Interpretive Guidance - Case No. SDGT-1051 [Application Included in Original PDF]

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TURBOFAC Commentary (1093 words)

Notes:

1) See application in native PDF file. This guidance illustrates how the rigid 50% rule only operates downstream, rather than upstream, where in the latter case the concept of "indirect dealings" is applied.

OFAC deems the transaction acceptable provided that no payments are made "indirectly" to the designated entities. Note that the regulations to not explicitly state that one cannot "indirectly" deal with a blocked entity by dealing with an entity that controls an , but OFAC takes the position that the concept is implicit in all sanctions regulations. (See Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property are Blocked).

Here, the applicant offered to provide a written attestation that none of the funds actually sent to the entity that controlled the SDNs would be apportioned to the SDNs....

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Case No. SDGT-1051 [Application Included in Original PDF]

TURBOFAC Commentary (1093 words)