OFAC FAQ (Current) # 211 - Treasury CISADA Findings Against Bank of Kunlun

Date issued: May. 17 2013

TURBOFAC Commentary (125 words)

Notes:

1) OFAC distinguishes between secondarily sanctioned entities placed on the Part 561 list (Correspondent Account or Payable-Through Account Sanctions List (the "CAPTA List")), such as Kunlun, that have not also been designated as SDNs. Because Kunlun is not designated, the bank itself is not subject to secondary sanctions. What OFAC seems to have in mind here is something akin to the diversion of funds to Iran as a result of dealings with Kunlun.

Note however that more recent FFI-based CAPTA secondary sanctions apply to dealings with persons that have been derivatively designated for Iran-related dealings, whether or not the derivatively designated persons are Iranian and whether or not they have the [SDGT] or [NPWMD] tags. See Sec. 2(a)(ii) of EO 13846.