The Office of Foreign Assets Control updated its Specially Designated Nationals and Sanctions List Service, and took sanctions action over the last week in the Russia, Sudan and Nicaragua programs:
SDN and SLS Updates
- OFAC Released Technical Notice Regarding “403 errors”: OFAC released a technical notice regarding user reports receiving “403 errors” when attempting to access the Sanctions List Service hosted files via automatic redirects. Read more.
- OFAC Amends Iranian Sanctions Regulations: OFAC on May 16 amended the Iranian Transactions and Sanctions Regulations to incorporate Iran-related General License D-2 and published an associated List of Services, Software, and Hardware Incident to Communications, which can be found under the General Licenses and Federal Register Notices sections of the Iran Sanctions page. In addition, OFAC published new Frequently Asked Question 1173 and amended 26 ITSR-related FAQs.
Russia-related Sanctions
- OFAC Designates Russian Individuals and Entities for Supporting North Korean Regime: OFAC on May 16 imposed sanctions on two Russian individuals and three Russia-based entities for facilitating weapons transfers between Russia and North Korea. OFAC designated individuals Rafael Anatolyevich Gazaryan and Aleksey Budnev; entities Trans Kapital Limited Liability Company, Rafort Limited Liability Company and Tekhnologiya, OOO. OFAC’s action promotes U.S. government objectives to disrupt and expose arms transfers between North Korea and Russia, and builds upon sanctions imposed by the Department of the Treasury and the Department of State related to North Korea-Russia arms transfers, including the transfer and testing of North Korea-origin ballistic missiles for Russia’s use against Ukraine. Read more.
- OFAC Designates Russian Individual and Entities for Supporting Russian Oligarch: OFAC on May 14 designated a Russian individual and three Russia-based companies involved in an attempted sanctions evasion scheme in which an opaque and complex supposed divestment could have unfrozen more than $1.5 billion worth of shares belonging to U.S.-designated Russian oligarch, Oleg Vladimirovich Deripaska. OFAC designated Deripaska in 2018 for operating in the energy sector of the Russian Federation economy. Deripaska is also sanctioned by Australia, Canada, the European Union, New Zealand, and the United Kingdom. In 2022, the U.S. Department of Justice charged Deripaska with conspiring to violate and evade U.S. sanctions in violation of the International Emergency Economic Powers Act. Read more.
Sudan-related Sanctions
- OFAC Sanctions Sudanese Rapid Support Forces Commanders: OFAC on May 15 sanctioned Ali Yagoub Gibril and Osman Mohamed Hamid Mohamed pursuant to Executive Order 14098 for leading the Rapid Support Forces’ (RSF) war campaign. Gibril is the RSF Central Darfur commander while Hamid is a major general in the RSF and the group’s head of operations. The RSF’s attacks in North Darfur, which started last month, have caused dozens of civilian casualties, including children. OFAC’s sanctions prohibit transactions with the designees and freezes any assets they may have under U.S. jurisdiction. Read more.
Nicaragua-related Sanction
- OFAC Imposes Sanctions on Nicaragua-based Entities: OFAC on May 15 imposed sanctions on three Nicaragua-based entities, the Training Center of the Russian Ministry of Internal Affairs in Managua (RTC); Compania Minera Internacional, Sociedad Anónima (COMINTSA); and Capital Mining Investment Nicaragua, Sociedad Anónima (Capital Mining), pursuant to Executive Order 13851, as amended. OFAC’s actions are in response to the Ortega-Murillo regime’s continued repression of the people of Nicaragua and continued exploitation of vulnerable migrants, including via the facilitation and profiting off of irregular migration to the United States. Read more.
- In related news, OFAC announced a business advisory on human trafficking titled “Policy Alert on Disrupting Irregular Migration: Best Practices in Response to Recent Developments in the Aviation Sector.” Banks should be aware of human smuggling/trafficking concerns with respect to travel to or from Managua, and actions by the Nicaraguan government to facilitate “irregular migration” and illicit activity. Recommendation 2 would be of interest to banks, especially those who now have, or might in the future, bank travel agencies, charter flight companies, or other travel-related businesses (insurers, etc).
