869. If a person is subject to non-blocking menu-based sanctions described in section 235(a) of the Countering America’s Adversaries Through Sanctions Act (CAATSA), do the same non-blocking sanctions apply to entities owned 50 percent or more by the listed person?
No. If a person is listed on OFAC’s Non-SDN Menu-Based Sanctions List (NS-MBS List) as subject to only a combination of the sanctions described in section 235(a)(1-8) and (10-11) of CAATSA, as implemented by Executive Order (E.O.) 13849, these non-blocking sanctions do not apply to an entity owned 50 percent or more, individually or in the aggregate, directly or indirectly, by such sanctioned person or persons, unless OFAC separately lists the owned entity on the NS-MBS List as subject to the same sanctions.
However, section 235(a)(9) of CAATSA, as implemented by section 1(a)(iv) of E.O. 13849, blocks the property and interests in property of the...
1) Compare Secondary Sanctions Enforcement Announcement - Petrochemical Commercial Company International (PCCI) of Bailiwick (Jersey and Iran), et al., in which the State Department imposed menu-based secondary sanctions on several entities pursuant to section 5(a) of the Iran Sanctions Act (ISA). Many of the sanctions, which are described at Sec. 6 of the ISA, are identical to those contained in the “menu” in CAATSA, including the “loans or credits” sanction imposed against the single entity that appears on the NS-MBS list as of the date of the release of this FAQ. In the ISA context, the State Department, in the enforcement notice referred to above, made clear that the “loans or credits” sanction “appl[ies] with respect to [the sanctioned person named in the notice] and not to any subsidiary, affiliate, or shareholder thereof...