The Office of Foreign Assets Control announced the following sanctions action last week.
Enforcement Actions
- OFAC Announces Settlement with Haas Automation, Inc.: OFAC on Jan. 17 announced a $1,044,781 settelement with Haas Automation, a California-based manufacturer of machine tools and related parts, for 21 apparent violations of Executive Orders 13661 and 13662 for indirectly supplying machines, parts and authorization codes for computer numerical control machines owned by blocked Russian entities. This settlement reflected OFAC’s determination the conduct was egregious and was not voluntarily self-disclosed. Read more.
- OFAC Announces Settlement with Family International Realty LLC and its Owner: OFAC on Jan. 16 announced a $1,076,923 settlement with a Miami, Florida-based natural U.S. person and their real estate company, Family International Realty LLC regarding their potential civil liability for apparent violations of OFAC’s Ukraine-/Russia-related sanctions. Specifically, between 2018 and 2023, Family International Realty and its owner engaged in a willful scheme to evade OFAC sanctions by concealing the property interest of two sanctioned Russian oligarchs in luxury condominiums and profiting from the rental and sale of the properties, committing 73 apparent violations of Executive Order 13685. The settlement amount reflects OFAC’s determination that the conduct at issue was egregious and was not voluntarily self-disclosed. Read more.
Russia-related Sanctions
- OFAC Sanctions Russian Network: OFAC on Jan. 15 targeted a sanctions evasion scheme established between actors in Russia and the People’s Republic of China (PRC) to facilitate cross-border payments for goods. In addition, Treasury designated a Kyrgyz Republic-based financial institution, OJSC Keremet Bank (Keremet Bank) for coordinating with Russian officials and a U.S.-designated Russian bank Promsvyazbank Public Joint Stock Company (PSB) to implement a sanctions evasion scheme. The U.S. Department of State is sanctioning more than 150 entities and individuals pursuant to E.O. 14024, including a wide range of companies in Russia’s defense industry and those supporting its military industrial base. OFAC’s sanctions include dozens of companies across multiple countries that continue to support Russia’s efforts to evade U.S. sanctions, particularly in the PRC, which remains the largest supplier of dual use items and enabler of sanctions evasion in support of Russia’s war effort. Read more.
- OFAC issued Russia-related General License 122, “Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on January 15, 2025;” Russia-related General License 123, “Authorizing Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, Wafangdian Bearing Company Limited;” and Russia-/Ukraine-related General License 26A, “Transactions Authorized Pursuant to the Russian Harmful Foreign Activities Sanctions Regulations.”
Balkans-related Sanctions
- OFAC Sanctions Destabilizing Actors and Financial Enablers in Republika Srpska: OFAC on Jan. 17 designated five individuals and one entity that facilitate Republika Srpska (RS) President Milorad Dodik (Dodik) and his family’s efforts to enrich themselves at the public’s expense. OFAC’s action also targets eight individuals who, at Dodik’s direction, organized and executed the commemoration of “Republika Srpska Day” (RS Day) in January 2024, in contravention to the principles of the Dayton Peace Agreement (DPA) and which the Bosnia and Herzegovina (BiH) Constitutional Court (CC) ruled unconstitutional. Read more.
Syria-related Sanctions
- New Executive Order Takes Additional Steps with Respect to the Situation in Syria: The President on Jan. 15 signed a new Executive Order, “Taking Additional Steps with Respect to the Situation in Syria.” Under the amended order, the United States may still sanction any person determined to be responsible for or complicit in, or to have directly or indirectly engaged in, or attempted to engage in actions or policies that further threaten the peace, security, stability, or territorial integrity of Syria or the commission of serious human rights abuse. Read more.
- New Executive Order to Strengthen Nation’s Cybersecurity: President Biden on Jan. 16 signed new Executive Order, “Strengthening and Promoting Innovation in the Nation’s Cybersecurity.” The new E.O. aims to protect against the growing and evolving threat of malicious cyber-enabled activities against the United States, its allies and partners, including the increasing threats by foreign actors of unauthorized access to critical infrastructure, ransomware, and cyber-enabled intrusions and sanctions evasion. Read more.
Sudan-related Sanctions
- OFAC Sanctions Leader of Sudanese Armed Forces and Weapons Supplier: OFAC on Jan. 16 sanctioned Abdel Fattah Al-Burhan (Burhan), the leader of the Sudanese Armed Forces (SAF), under Executive Order 14098, “Imposing Sanctions on Certain Persons Destabilizing Sudan and Undermining the Goal of a Democratic Transition.” OFAC’s action follows the designation of the leader of the Rapid Support Forces (RSF), Mohammad Hamdan Daglo Mousa (Hemedti), on Jan. 7, 2025. In addition to Burhan, OFAC sanctioned Hong Kong-based, Portex Trade Limited and Ahmad Abdalla (Abdalla), a Sudanese-Ukrainian national and an official of the Defense Industries System (DIS), a procurement arm of the SAF that OFAC sanctioned in June 2023. Read more.
North Korea-related Sanctions
- OFAC Sanctions IT Network of Individuals and Entities: OFAC on Jan. 16 sanctioned two individuals and four entities for generating illicit revenue for the Democratic People’s Republic of Korea (DPRK) government. The designees are highly skilled information technology (IT) workers who obfuscate their identities and locations to fraudulently obtain freelance employment contracts from clients around the world for IT projects. The two designated individuals are Jong In Chol, president of Chonsurim’s DPRK IT worker delegation in Laos and Son Kyong Sik, the Shenyang, China-based chief representative of 53 Department’s Osong. OFAC sanctioned entities Department 53 of the Ministry of The People’s Armed Forces (Department 53); Department 53 front company Korea Osong Shipping Co (Osong); Department 53 front company Chonsurim Trading Corporation (Chonsurim) and Liaoning China Trade Industry Co., Ltd (Liaoning China Trade). Read more.
Terrorism-related Sanctions
- OFAC Sanctions Yemen Kuwait Bank for Supporting Houthis: OFAC on Jan. 17 sanctioned Yemen-based Yemen Kuwait Bank for Trade and Investment Y.S.C (Yemen Kuwait Bank) for its financial support to Ansarallah, commonly known as the Houthis. Yemen Kuwait Bank aids the Houthis in exploiting the Yemeni banking sector to launder money and transfer funds to its allies, including Lebanese Hizballah. OFAC’s designation builds on previous Treasury sanctions that have targeted Houthi-affiliated exchange houses and international finance networks responsible for channeling the illicit proceeds of Iranian petroleum sales to the Houthis. This action is being taken pursuant to the counterterrorism authority, Executive Order 13224, as amended. The U.S. Department of State’s designation of Ansarallah as a Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224, as amended, became effective on February 16, 2024. Read more.
- Related to this action, OFAC issued Counter Terrorism General License 32 authorizing the wind-down of transactions involving Yemen Kuwait Bank for Trade and Investment, or any entity it owns a 50% or greater interest. Covered transactions are authorized through February 16, 2025.
Cyber-related Sanctions
- OFAC Sanctions Salt Typhoon-related Actors: On Jan. 17, OFAC designated Yin Kecheng, a Shanghai-based cyber actor who was involved with the recent Department of the Treasury Salt Typhoon network compromise, as well as Sichuan Juxinhe Network Technology Co., LTD., a Sichuan-based cybersecurity company with direct involvement in the Salt Typhoon cyber group, which recently compromised the network infrastructure of multiple major U.S. telecommunication and internet service provider companies. Read more.
