OFAC UPDATES

Specially Designated Nationals and Blocked Persons List

OFAC (the “Office of Foreign Assets Control”) released an update on 26 April 2021 entitled “Specially Designated Individuals and Blocked Persons List” whereby it publishes a list of individuals and companies owned or controlled by, or acting for and on behalf of, targeted countries. It also list individuals, groups and entities, such as terrorists and narcotics traffickers designated under programs that are not necessarily targeted to a specific country. Those individuals and companies are altogether referred to as “Specially Designated Nationals” or “SDNs”. Their property is frozen and U. S persons are generally prohibited from dealing with them.

Increased sanctions on Russia

• The US Government has also increased sanctions measures against Russia. This has resulted from Russia’s “harmful foreign activities, “including efforts to undermine free and fair democratic elections and institutions, malicious cyber activities (including the recent SolarWinds incidents), transnational corruption, targeting of dissidents.

OFAC and Pakistan

• Pakistan has been added to the Specially Designated Nationals List
• Press release dated 7 April 2021 entitled “Treasury Sanctions Pakistani-based transnational human smuggling organisation involved in smuggling migrants to the United States. “
• It stated that the US department of The Treasury’s Office of Foreign Assets Control (OFAC) designated Pakistani national Abid Ali Khan and The Abid Ali Khan Transnational Criminal Organisation (TCO) pursuant to Executive order (E.O) 13581, “ Blocking Property of Transnational Criminal Organisation, as amended.
• The Abid Ali Khan TCO is a human smuggling organisation based in Nowshera, Pakistan.
• It has facilitated the unlawful smuggling of foreign nationals, including foreign nationals who may pose a national security risk to the United States with interests, into the US using various travel routine through Latin America since at least 2015.
• OFAC has also designated three individuals and one entity that are associated with the Abid Ali Khan TCO.

OFAC and Syria

• On 5 April 2021, the department of Treasury’s Office of Foreign Assets control published frequently asked questions 884 and 885 to see whether non-US persons such as NGOs and foreign financial institutions risk exposure to US secondary sanctions under the Caesar Syria Civilian Protection Act 2019 (“CAESAR Act”) for transaction authorised under the Syrian Sanctions Regulations(SySR).
• OFAC stated that no sanctions would be imposed on non-US persons under the Caesar Act as long as a US person would have been able to engage in same activity without a license from OFAC.
• OFAC stated that US persons and entities are able to provide humanitarian support, such as food or medication without any risk of US sanctions or requirement for an OFAC license.

OFAC and Myanmar

• US, UK, EU authorities continue to expand sanctions targeting the Tatmadaw, Myanmar’s armed forces, following 17 February 2021 military coup in Myanmar.
• Over the past months, the United States and its allies have imposed blocking and other sanctions on the two major Tatmadaw-controlled conglomerates in Myanmar that provide financing for the armed force, additional gems, pearls and timber industry companies that provide sources of funding to the coupe regime and further coup regime and Tatmadaw official.
• On 25 March 2021,the US department of The Treasury’s Office of Foreign Asset Control (OFAC) designated Myanma Economic Holdings Public Limited Company(MEHL or MEHPCL) and Myanmar Economic Corporation Limited(MEC) as specially designated individual.
• On 8 April 2021,,OFAC added Myanma Gems Enterprise to the SDN List.
• On 21 April 2021,OFAC designated Myanmar Timber Enterprises(MTE) and Myanmar Pearl Enterprise.

The ongoing monitoring of targeted financial sanctions is part of the obligations of financial institutions and relevant professions in Mauritius per the The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 and affiliated guidelines as issued by the Financial Services Commission. As part of the reporting measures under this legislation, the timeframe to report identified sanctioned parties is 24 hours.

Accordingly, institutions need to ensure that they have a framework in place to correctly identify, investigate and report sanctioned entities and their affiliates to the local authorities.

Temple Consulting Ltd. has been assisting licensees of the banking and non-banking financial services to adhere to their AML / CFT obligations since 2007.

Get in touch with our team for more details on how your organisation can better implement its sanctions monitoring regime.