The Treasury’s Office of Foreign Assets Control removed sanctions imposed on Ventspils Freeport Authority and amended a general license to reflect the change, according to a Dec. 18 notice. Ventspils was designated Dec. 9 for being owned by a sanctioned Latvian oligarch (see 1912090019), but is being removed from U.S. sanctions because the Latvian government passed legislation “effectively ending” the oligarch’s ownership, Treasury said in a Dec. 18 press release. OFAC also replaced Global Magnitsky General License 1 with General License 1A, which removes any mention of the Ventspils Freeport Authority.
OFAC sanction activity
The Treasury’s Office of Foreign Assets Control is expected to increase enforcement of its 50 percent rule, placing more of a burden on companies to determine whether they are indirectly dealing with a sanctioned party, said Joshua Shrager, a former Treasury official and a senior specialist with Kharon, a sanctions advisory firm. While the 50 percent rule -- which bans transactions with a company owned 50 percent or more by a sanctioned party -- is growing increasingly complicated due to a rise in U.S. sanctions, OFAC’s compliance expectations are rising too, Shrager said.
The Treasury’s Office of Foreign Assets Control sanctioned two South Sudan officials for obstructing peace talks, Treasury said in a Dec. 16 press release. OFAC targeted the Minister of Cabinet Affairs Martin Elia Lomuro and Minister of Defense and Veteran Affairs Kuol Manyang Juuk, who have both “perpetuated” the country’s “conflict for their own personal enrichment,” the press release said.
A Texas aviation consultant violated U.S. terrorism sanctions when it entered into a contract with Mahan Air, Iran’s sanctioned airline, the Treasury’s Office of Foreign Assets Control said in a Dec. 12 notice. The company, Aero Sky Aircraft Maintenance, was issued a finding of violation by OFAC after it violated U.S. Global Terrorism Sanctions Regulations in 2016 for “dealing in the property and interests in property” of Mahan Air, the notice said. Aero Sky eventually filed for bankruptcy and dissolved, Treasury said. OFAC released details of the violations because they would have “justified a strong civil monetary penalty.”
The Treasury’s Office of Foreign Assets Control sanctioned three people involved in money laundering in Lebanon and the Democratic Republic of the Congo as well as 17 entities and one vessel, Treasury said in a Dec. 13 press release. OFAC also issued three new counterterrorism-related frequently asked questions.
The Treasury’s Office of Foreign Assets Control sanctioned the son of Nicaraguan President Daniel Ortega and three Nicaraguan companies owned by the Ortega family, Treasury said in a Dec 12 press release. The action targets Rafael Antonio Ortega Murillo and two companies he operates -- Inversiones Zanzibar, S.A. and Servicio De Proteccion Y Vigilancia, S.A. -- as well as Distribuidor Nicaraguense de Petroleo, S.A., a chain of gas stations controlled by the Ortega family. Inversiones Zanzibar is used to transfer and hide profits from Distribuidor Nicaraguense, Treasury said. Servicio De Proteccion Y Vigilancia is a security firm that has received “millions” in government contracts, the press release said.
The Treasury’s Office of Foreign Assets Control issued two Iran-related frequently asked questions to address its Dec. 11 designations of the Islamic Republic of Iran Shipping Lines (IRISL) and E-Sail Shipping Limited (see 1912110024). In FAQ 810, OFAC said the two entities are also subject to prohibitions under the Weapons of Mass Destruction Proliferators Sanctions Regulations due to their designation by the State Department. In FAQ 811, OFAC specified that license exceptions for exports of food, medicine and other humanitarian items generally do not apply to parties sanctioned for weapons proliferation activities. U.S. exporters will not be able to ship “agricultural commodities, food, medicine, or medical devices” to IRISL and E-Sail, OFAC said. Exporters who ship those items “risk exposure to sanctions under additional authorities.” To avoid risks, U.S. exporters should make sure sales of those goods are completed no later than June 8, 2020, when the designations take effect, OFAC said.
The State Department announced sanctions on three Iranian entities linked to weapons proliferation and eight entities involved in weapons smuggling from Iran to Yemen, the agency said Dec. 11. The announcement targets the Islamic Republic of Iran Shipping Lines (IRISL), its China-based subsidiary, E-Sail Shipping Company, and the Iranian airline Mahan Air. The Treasury’s Office of Foreign Assets Control previously sanctioned E-Sail in 2018, Mahan Air in 2011 and IRISL in 2008.
The Treasury’s Office of Foreign Assets Control sanctioned an Iranian shipping network, its leader and three Mahan Air sales agents, Treasury said in a Dec. 11 press release. The shipping network illegally smuggled “lethal aid” from Iran to Yemen on behalf of the Islamic Revolutionary Guard Corps-Qods Force, Treasury said, and the three sales agents, based in the United Arab Emirates and Hong Kong, were targeted for working for a sanctioned Iranian airline.
The Treasury’s Office of Foreign Assets Control sanctioned 18 people and six entities under the Global Magnitsky Human Rights Accountability Act for human rights violations, Treasury said in a Dec. 10 press release. The people are located in Burma, Pakistan, Libya, Slovakia, the Democratic Republic of the Congo and South Sudan, and the six entities are all located in Slovakia.