Case No. FNK-2017-349889-1

Date issued: Apr. 30 2018

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TURBOFAC Commentary (319 words)

Notes:

1) A U.S. person reported (see p. 5, PDF) that it was holding “deposits under two unexecuted contracts” related to the exportation of wheat that paid by a blocked person and held in a U.S. bank account. Those funds were transferred to a blocked account and reported to OFAC (pp. 3-5, PDF), along with an additional sum “due to be refunded” to the blocked person for demurrage in connection with a prior transaction. The applicant sought a license to (i) unblock a portion of the blocked funds that represented damages resulting from the need to re-sell the wheat at a loss, and (ii) “authorization to initiate Grain and Feed Trade Association arbitration proceedings against [blocked person] relating to the two contracts and to perform any necessary dealings relating to that arbitration”.

2) OFAC rejected the request for the unblocking of funds, stating that...