Treasury Provides Additional FAQs About Executive Order on Sanctions Evaders

Some of the additional FAQs include:

• The Executive Order strengthens Treasury's ability to address behavior by foreign individuals and entities determined to have violated, attempted to violate, conspired to violate, or caused a violation of U.S. sanctions on Syria or Iran.
• Publicly identifying such persons will also allow U.S. persons to avoid unwittingly engaging in transactions with identified foreign persons that may expose U.S. persons to the risk of sanctions violations.
• Treasury may use this authority where it appears that a foreign person violated U.S. sanctions on Iran or Syria but may not meet criteria for designation under existing Executive Orders.
• The Executive Order provides a means for Treasury to limit the risk to U.S. commercial and financial systems posed by foreign persons determined to have violated U.S. sanctions.
• If an individual or entity is made subject to sanctions under this authority, U.S. persons generally may no longer provide to or procure from such individual or entity any goods, services, or technology. From a practical standpoint, it means that the sanctioned individual or entity will be cut off from the U.S. commercial and financial systems.
• Identifications or listings under the FSE E.O. do not block any assets. However, a U.S. person may not provide or procure goods or services, including financial services, or technology to or from a listed person without authorization from OFAC, unless the transaction is otherwise exempt from regulation under the International Emergency Economic Powers Act.
• Property of a listed person is not blocked, but U.S. persons must have authorization from OFAC to provide or procure such property to or from a listed person, or to provide or procure services to or from a listed person in connection with such property.
• U.S. persons are prohibited from all transactions or dealings described in the FSE E.O. with persons listed under the FSE E.O., unless authorized by OFAC or where the transaction is otherwise exempt from regulation under the International Emergency Economic Powers Act.
• Like a designation, a U.S. person is prohibited, unless authorized by OFAC or if the underlying transaction is exempt from regulation under the International Emergency Economic Powers Act, from dealing with an identified or listed person. Unlike a blocking designation, the property and the interests in property of a person listed under the FSE E.O. are not blocked.
• Treasury's authority under the FSE E.O. has some similarities to Commerce's authority under the Export Administration Regulations ("EAR"). Treasury's authority under the FSE E.O. complements Commerce's authority by addressing at least two types of sanctions violations that are outside the scope of the EAR. Specifically, Treasury may prohibit the provision of services (in addition to goods and technology) to or from identified or listed persons and Treasury may prohibit transactions or dealings involving goods and technology that are not subject to the EAR.
• If a transaction is underway at the time of a listing, a U.S. person must cease dealing with the listed person and the U.S. person is prohibited from engaging in transactions or dealings in or related to any goods, services, or technology to or from the listed person.