567. I am a U.S. person employee or work at an office of a company that was designated under E.O. 13661 or E.O. 13662, or blocked by operation of law pursuant to OFAC’s 50 percent rule on April 6, 2018 as a result of such a designation. What am I authorized to do with respect to continuing activities of the blocked entity?
In issuing General License 12A, OFAC is authorizing a time-limited maintenance or wind down of operations, contracts, or other agreements that were in effect prior to April 6, 2018 and in which the blocked entities listed in General License 12A have an interest, provided that any payment made directly or indirectly to the blocked entities listed in General License 12A be deposited in a blocked account at a U.S. financial institution.
In general, General License 12A would authorize all transactions ordinarily incident to the continuity of operations or to facilitate a wind down, including the provision of salary payments, pension payments, or other benefits, by the blocked entities listed in General License 12A, or the provision of services by the employee to such blocked entities, until the expiry of General License 12A.
U.S. person employees are encouraged to review the applicable OFAC regulations, authorizations, and public guidance. If, after conducting that review, you are concerned that your activities as an employee are not authorized by general license, you may contact OFAC.
If you are a U.S. person employee of an individual or entity that is not among the blocked entities listed in General License 12A, including entities blocked pursuant to OFAC’s 50 percent rule, you are prohibited from engaging in transactions with such individual or entity, including the provision or receipt of goods or services, or otherwise transacting or dealing in any property in which the individual or entity has an interest. If you wish to seek authorization to maintain or wind down operations, contracts, or other agreements with such individual or entity, contact OFAC.
[Ed Note: see original FAQ for hyperlinks]
1) Ukraine GL 12A has been amended and replaced by Ukraine GL 12B, which in turn was replaced by Ukraine GL 12C, all of which have expired.
2) Note that the scope of the companies included in the GL covers some that remained blocked subsequent to OFAC's delisting of Rusal, and some that remain blocked.[1]
[1] https://home.treasury.gov/news/press-releases/sm592
3) FAQ provides a notable interpretation of transactions "ordinarily incident and necessary to the maintenance or wind-down of operations, contracts, or other agreements," as it appears in the GL, as appearing to include separation payments and other obligations owed to employees of blocked companies. The dealings covered are not limited to trade transactions.
4) See generally Examples of Transactions Deemed to be, and not to be, Within the Scope of the Standard "Wind-down" and "Maintenance" GLs