OFAC FAQ (Current) # 546 - Section 228 (CAATSA) (PDF contains all versions)

Date issued: Apr. 29 2022

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TURBOFAC Commentary (1319 words)

Notes:

1) Read this FAQ in conjunction with FAQ # 542 and FAQ # 545, specifying that, for secondary sanctions purposes, a transaction is only "significant" if it is one in which a U.S. person could not engage without a license. Those statements, explicit in the Russia context but apparently a reflection of OFAC's practice as a general matter, appear to be the result of the interpretation taken in this FAQ. SSIDES, as amended by CAATSA, requires secondary sanctions on foreign persons for significant transactions with all persons "subject to sanctions imposed by the United States with respect to the Russian Federation." As discussed in General Note on "Sectoral Sanctions" and Determinations Made Pursuant to EOs Providing for the Blocking of Persons Determined to "Operate In" a Certain Sector (System Ed. Note), the legal structure underpinning the...