The Office of Foreign Assets Control took a number of significant sanctions actions over the last week across multiple programs:
Enforcement Action
- OFAC Announces $20 Million Settlement with SCG Plastics Co., Ltd.: OFAC on April 19 announced a settlement with SCG Plastics Co., Ltd., part of a multinational enterprise headquartered in Bangkok, Thailand. SCG Plastics has agreed to pay $20,000,000 to settle its potential civil liability for 467 apparent violations of OFAC sanctions on Iran. From 2017 to 2018, SCG Plastics caused U.S. financial institutions to process $291 million in wire transfers for sales of Iranian origin polyethylene resin manufactured by a joint venture in Iran. The $20,000,000 settlement amount reflects OFAC’s determination that SCG Plastics’ apparent violations were egregious and, with the exception of certain transactions, were not voluntarily self-disclosed. Read more.
Russia-related Sanctions
- OFAC Issues General License 94 to Authorize Transactions with OWH SE i.L.: OFAC on April 19 issued Russia-related General License 94, “Authorizing Transactions Involving OWH SE i.L. (Formerly Known as VTB Bank Europe SE).” GL 94 follows OFAC’s action on April 2 which removed VTB Bank Europe SE from its Specially Designated Nationals List. Read more.
Belarus-related Sanctions
- OFAC Targets Belarusian Sanctions Evasion Networks: OFAC on April 15 designated 12 entities and 10 individuals pursuant to Executive Order 14038. OFAC’s action builds on U.S. sanctions imposed in response to Belarus’s fraudulent August 2020 election, as well as President Alyaksandr Lukashenka’s support for Russia’s invasion of Ukraine. OFAC’s action sustains U.S. financial pressure on the Lukashenka regime for its continuing support for Russia’s war against Ukraine and the financial benefit it derives from this activity. The designees are six revenue-generating state-owned enterprises (SOEs) and one entity and five individuals involved in facilitating transactions for a U.S.-designated major Belarusian defense sector enterprise. OFAC additionally targeted five entities and five individuals involved in a global arms network doing business with a U.S.-designated Belarusian defense firm. Read more.
West Bank-related Sanctions
- OFAC Imposes Sanctions on Entities Involved in Raising Funds for Extremists in the West Bank: OFAC on April 19 imposed sanctions on two entities for their roles in establishing fundraising campaigns on behalf of Yinon Levi and David Chai Chasdai, two violent extremists who were sanctioned on Feb. 1, 2024 in connection with violence in the West Bank. The fundraising campaigns established by Mount Hebron Fund for Levi and by Shlom Asiraich for Chasdai generated the equivalent of $140,000 and $31,000, respectively. OFAC designated Mount Hebron Fund and Shlom Asiraich for assisting the designees and are designated pursuant to Executive Order 14115. Read more.
Iran-related Sanctions
- OFAC Sanctions Network Supporting Iran’s UAV and Military Aircraft Production: In response to Iran’s attack on Israel on April 13, OFAC sanctioned 16 individuals and two entities enabling Iran’s unmanned aerial vehicle (UAV) production, including engine types that power Iran’s Shahed variant UAVs, which were used in the April 13 attack. The designees work on behalf of Iran’s Islamic Revolutionary Guard Corps-Qods Force, its UAV production arm, Kimia Part Sivan Company, and other Iranian manufacturers of UAVs and UAV engines. OFAC also designated five companies in multiple jurisdictions providing component materials for steel production to Iran’s Khuzestan Steel Company. Iran’s metals sector generates the equivalent of several billion dollars in revenue annually, with the majority coming from steel exports. OFAC also sanctioned three subsidiaries of Iranian automaker Bahman Group, which have continued to materially support the IRGC and other entities designated pursuant to counterterrorism authorities, including Iran’s Ministry of Defense and Armed Forces Logistics. Concurrent with this action, the United Kingdom imposed sanctions targeting several Iranian military organizations, individuals and entities involved in Iran’s UAV and ballistic missile industries. Read more.
ADVERTISEMENT
