General Note on the terms "Exempt," "Authorized," "Licensed," "Prohibited, "Not Prohibited" and "Sanctionable" (System Ed. Note)

Last substantive commentary amendment:
Apr. 01 2024

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

TURBOFAC Commentary (4734 words)

General Note on the Terms "Exempt," "Authorized," "Licensed," "Prohibited," "Not Prohibited" and "Sanctionable" (System Ed. Note).

1) BACKGROUND AND OVERVIEW OF TERMS


Depending on the context in which they are used, OFAC's use of the terms "exempt," "authorized" "licensed," "prohibited," "not prohibited" and "sanctionable" can be extremely important for the purposes of determining what would and would not constitute a violation of a given provision.

The situations in which the scope of terms can play a determinative role include:

i) whether conduct with no U.S. nexus whatsoever is punishable by criminal or civil fines in addition to potential designation;
ii) whether U.S. persons can facilitate or otherwise engage in transactions ordinarily incident to an underlying transaction;
iii) whether
U.S.-owned or -controlled foreign entities subject to the ITSR as a...