OFAC Sanctions Paraguayan Tobacco Company, Issues General License
The Office of Foreign Assets Control last week sanctioned Tabacalera del Este, a Paraguay-based cigarette manufacturer, and issued a new general license authorizing certain transactions with the company. OFAC said Tabacalera is owned 50% or more by former Paraguayan President Horacio Manuel Cartes Jara, who was sanctioned by the agency in January for corruption, along with another of his companies, Tabacos USA (see 2301260073).
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New General License No. 7 authorizes certain transactions involving Tabacos USA, Tabacalera del Este or any entity they own by 50% or more. Those transactions must be “ordinarily incident and necessary" to payments under the 1998 Master Settlement Agreement, a settlement between the U.S. and four tobacco companies that resolved dozens of state lawsuits associated with treating smoking-related illnesses, OFAC said.