The Treasury's Office of Foreign Assets Control does not adequately report on the money it and partner agencies spend related to sanctions against drug traffickers, leading to potentially inaccurate estimates and a lack of transparency when reporting expenditures, the Government Accountability Office said. Although OFAC reports to Congress on the resources and personnel it uses when imposing Foreign Narcotics Kingpin Designation Act sanctions, it provides “limited guidance” to partner agencies on how to fulfill those same reporting requirements, the GAO said. Administration officials also said it is sometimes “impossible” to determine whether the sanctions are working.
OFAC sanction activity
The Treasury’s Office of Foreign Assets Control sanctioned 13 aircrafts belonging to Petroleos de Venezuela, Venezuela’s state-run and sanctioned energy company, Treasury said in a Jan. 21 press release. The aircrafts have been used for travel for senior members of the Nicolas Maduro regime and have “operated in an unsafe and unprofessional manner in proximity to U.S. military aircraft,” Treasury said.
The Treasury’s Office of Foreign Assets Control has done little to define the broad scope of the Iranian executive order issued earlier this month that expanded sanctions authority for the Treasury and State departments, according to trade lawyers. The order (see 2001100050) -- which authorized both primary and secondary sanctions against Iran’s construction, mining, manufacturing and textiles sectors -- did not define the scope of the Iranian sectors that may be subject to sanctions, and OFAC has yet to release guidance. OFAC did, however, issue a frequently asked question that provided a 90-day wind-down period (see 2001160011).
The Treasury’s Office of Foreign Assets Control clarified that people and companies involved in recently sanctioned Iranian sectors have a 90-day wind-down period, according to a frequently asked question issued Jan. 16. The wind-down period pertains to the sanctions and executive order recently announced by the Trump administration that authorizes new measures against the country’s construction, mining, manufacturing, and textiles sectors (see 2001100050). Entering into new business that would be considered sanctionable under the executive order after Jan. 10 will not be considered wind-down activity, the FAQ says. That activity may be subject to sanctions “even during the wind-down period.” The wind-down period expires April 9.
The Treasury’s Office of Foreign Assets Control sanctioned two North Korean entities involved in illegal exploitation of North Korea labor to generate money overseas, Treasury said in a Jan. 14 press release. Treasury said the two North Korean companies -- North Korea-based Namgang Trading Corporation (NTC) and China-based Beijing Sukbakso -- evade United Nations Security Council resolutions by sending North Korean laborers abroad. All UN member states were required to expel North Korean laborers in December, the press release said. NTC “maintained” laborers in “multiple” countries, including Russia, Nigeria and throughout the Middle East. Sukbakso, a lodging facility, handles portions of the travel and logistics for NTC personnel working overseas, Treasury said.
The Treasury’s Office of Foreign Assets Control sanctioned seven Venezuelan government officials who attempted to seize control of the country’s National Assembly and block an election, Treasury said in a Jan. 13 press release. The officials include Luis Eduardo Parra Rivero, Jose Gregorio Noriega Figueroa, Franklyn Leonardo Duarte, Jose Dionisio Brito Rodriguez, Conrado Antonio Perez Linares, Adolfo Ramon Superlano and Negal Manuel Morales Llovera. The sanctions came less than a week after the European Union announced intentions to soon impose sanctions on Venezuelan officials who tried to block the election process (see 2001100014).
President Donald Trump issued an executive order expanding U.S. sanctions authority against Iran and the Treasury Department announced a series of new Iran sanctions, including measures against senior Iranian officials, metal companies and a vessel. The executive order grants the U.S. the authority to impose a series of new primary and secondary sanctions against people and companies involved with Iran’s construction, mining, manufacturing and textiles sectors, Treasury Secretary Steven Mnuchin said during a Jan. 10 press conference. While the executive order only mentioned those four sectors, additional Iranian sectors may be sanctioned, Mnuchin said.
The Treasury’s Office of Foreign Assets Control sanctioned Taban Deng Gai, the first vice president of South Sudan, for human rights violations, Treasury said Jan. 8. Gai was involved in silencing human rights lawyers and advocates to solidify his position within the government, Treasury said.
The Treasury’s Office of Foreign Assets Control amended a Venezuela-related general license to extend the authorization period for certain activities with Globovision Tele C.A. or Globovision Tele CA, Corp., OFAC said in a Jan. 7 notice. The two entities are controlled by Gustavo Adolfo Perdomo Rosales and Raul Antonio Gorrin Belisario, who were sanctioned by OFAC in January 2019. General License No. 6A, which replaces General License No. 6, authorizes certain activities with the two entities or any entities they own by 50 percent or more until Jan. 21. The general license was previously scheduled to expire Jan. 8.
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