Notable Examples of Transactions Deemed to Be, and Not to Be, Within the Scope of the Standard "Wind-Down" and "Maintenance" GLs (System Ed. Note)

Last substantive commentary amendment:
Jan. 22 2024

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TURBOFAC Commentary (2501 words)

Notable Examples of Transactions Deemed to Be, and Not to Be, Within the Scope of the Standard "Wind-Down" and "Maintenance" GLs (System Ed. Note)

*This note addresses OFAC's interpretations of its standard "wind down" authorizations, i.e. those containing language authorizing transactions "ordinarily incident and necessary to the wind down of transactions involving" a given blocked person or sanctioned destination, and a dated, arguably narrower formulation authorizing transactions "ordinarily incident and necessary to the wind down of operations, contracts, or other agreements involving" a given blocked person (it is not clear whether "operations, contracts, or other agreements" involving a given entity is meant to be materially narrower than "transactions" involving a given entity). Note that certain OFAC-issued licenses authorize transactions related to the "wind down," e.g. liquidation of, an sanctioned entity (see e.g. LICENSE No. VENEZUELA-EO13850-2019-359381-1 and FNKSR - General License 1C). These...