The Office of Foreign Assets Control announced the following sanctions action last week.
Enforcement Action
OFAC Settlement with Fracht FWO Inc.: OFAC announced a $1.61 million settlement with Fracht FWO Inc., a Houston-based freight forwarder, for apparent violations of U.S. sanctions in the Venezuela and Iran programs. Fracht contracted with a blocked Venezuelan government airline to transport goods using an aircraft operated by Iran’s Mahan Air, which is sanctioned under terrorism and proliferation authorities. OFAC determined the conduct was egregious and not voluntarily self-disclosed. Read more.
Transnational Criminal Organization-related Sanctions
OFAC sanctions Southeast Asia scam networks: OFAC on Sept. 8 sanctioned a large network of scam centers across Southeast Asia that exploit forced labor and violence to steal billions from Americans.
Targets include 9 entities in Shwe Kokko, Burma, linked to virtual currency scams under the protection of the Karen National Army and 10 others in Cambodia. Read more.
International Criminal Court-related Sanctions
OFAC issues General License 10 and updates SDN List: On Sept. 4, OFAC issued International Criminal Court-related General License 10, “Authorizing the Wind Down of Transactions Involving Certain Persons Blocked on September 4, 2025.” This license permits U.S. persons to engage in transactions ordinarily incident and necessary to the wind down of dealings with the following entities through Oct. 4, 2025, provided payments are made into blocked interest-bearing accounts in the U.S.:
- Al Haq – Law in the Service of Mankind
- Al Mezan Center for Human Rights
- Palestinian Centre for Human Rights
- Entities owned 50% or more by any of the above
OFAC also updated its SDN List, adding the above organizations and reclassifying Los Choneros and Los Lobos in Ecuador as Transnational Terrorist Groups. Read more.
Iran-related Sanctions
OFAC sanctions oil smuggling network linked to Iran: On September 2, OFAC sanctioned a network of shipping companies and vessels led by Iraqi-Kittitian businessman Waleed al-Samarra’i for smuggling Iranian oil disguised as Iraqi oil. The scheme—designed to evade U.S. sanctions—has generated an estimated $300 million annually for both al-Samarra’i and the Iranian regime.
The sanctions target:
- Waleed al-Samarra’i, based in the UAE
- His companies: Babylon Navigation DMCC and Galaxy Oil FZ LLC
- Nine Liberia-flagged vessels used for ship-to-ship transfers
- Five Marshall Islands-based shell companies acting as vessel owners
Russia-related Sanctions
OFAC issues temporary authorization for certain diamond imports: On Aug. 27 OFAC issued General License 104A allowing the import of specific non-industrial diamonds that would otherwise be prohibited under Executive Order 14068. The authorization is valid through Sept. 1, 2026. All diamonds of Russian origin remain banned, and transactions involving sanctioned individuals or entities are still prohibited. Read more.
North Korea-related Sanctions
Corruption and Human Rights Abuse Designations
OFAC SDN List deletions and changes: OFAC has removed these individuals from the Specially Designated Nationals (SDN) List:
- Iryna Litviniuk (also known as Irina Gennadievna and Hennadzievna Litviniuk), a Belarusian national previously designated under the Global Magnitsky program.
- Musbah Mohamad M Wadi (also known as Mosbah Mohamed Wady), a Libyan national previously designated under the Libya sanctions program.
Additionally, OFAC updated the listing for ALWEFAQ LTD, a company based in Malta and Cyprus. The update removes its link to Musbah Wadi, while retaining its connection to Nourddin Milood Musbah. Read more.
Counter-narcotics-related Sanctions
OFAC sanctions China-based chemical company for synthetic opioid trafficking: On Sept. 3, OFAC sanctioned Guangzhou Tengyue Chemical Co., Ltd., a China-based company involved in manufacturing and selling synthetic opioids and dangerous cutting agents to U.S. buyers. The company’s representatives, Huang Xiaojun and Huang Zhanpeng, were also designated for coordinating shipments of these illicit substances.
OFAC’s action was taken under Executive Order 14059, targeting international drug proliferation. The FBI also announced a federal criminal indictment against the company and its representatives for conspiracy to commit drug trafficking. Read more.
