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

Last substantive commentary amendment:
Apr. 01 2024

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TURBOFAC Commentary (4915 words)

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


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...