During the first quarter of 2024, there were significant developments in the U.S. sanctions framework. This report summarizes the key developments and provides links to the relevant sources.
The following developments apply to all Office of Foreign Assets Control (OFAC) sanctions programs.
Department of the Treasury, Department of Commerce and Department of Justice Tri-Seal Compliance Note: Obligations of Foreign-Based Persons to Comply with U.S. Sanctions and Export Control Laws
Agency: Department of the Treasury,Office of Foreign Assets Control
Publication Date: March 6, 2024
Press Release
The departments of the Treasury, Commerce and Justice issued a compliance note that highlights the applicability of U.S. sanctions and export control laws to non-U.S. persons and entities as well as the enforcement mechanisms, including criminal prosecution, to hold non-U.S. persons accountable for violations of such laws. The compliance note also provides an overview of compliance considerations for non-U.S. companies and compliance measures to help mitigate their risk by summarizing recent enforcement cases brought by the respective agencies.
Implementation of the Federal Civil Penalties Inflation Adjustment Act
Agency: Department of the Treasury, Office of Foreign Assets Control
Publication Date: January 11, 2024
Effective Date: January 12, 2024
Press Release
(Federal Register notice available here)
OFAC amended its regulations to adjust for inflation the maximum civil monetary penalties that may be assessed under relevant OFAC regulations. The maximum civil penalties are now as follows:
- $108,489 per violation of the Trading With the Enemy Act.
- $368,136 per violation of the International Emergency Economic Powers Act.
- $97,178 per violation of the Antiterrorism and Effective Death Penalty Act of 1996.
- $1,829,177 per violation of the Foreign Narcotics Kingpin Designation Act.
- $16,630 per violation of the Clean Diamond Trade Act.
The following developments were program specific.
Burma Sanctions
Agency: Department of the Treasury, Office of Foreign Assets Control
Publication Date: January 31, 2024
Press Release
OFAC added individuals and entities closely tied to or associated with Burma’s military regime to its List of Specially Designated Nationals and Blocked Persons (SDN List) and issued a general license authorizing the winding down of transactions with certain of the newly listed entities.
Counter-Terrorism Sanctions
Agency: Department of the Treasury, Office of Foreign Assets Control
Press Release: Publication Date: March 03, 2024 (Federal Register notice available here)
Press Release: Publication Date: February 16, 2024
Press Release: Publication Date: January 22, 2024
Press Release: Publication Date: January 17, 2024
Over the course of three months, OFAC added various individuals, entities and aircraft to the SDN List and issued general licenses authorizing certain transactions with newly designated persons, including wind-down licenses and licenses authorizing certain diplomatic activities and certain exports of agricultural commodities, medicines and medical devices as well as exports related to Internet-based communications (see General Licenses 22-29). These designations targeted various money-laundering and financial assistance networks related to Iranian proxy groups operating in the Middle East and persons involved in financing Hamas.
Humanitarian Assistance in Yemen
Agency: Department of the Treasury,Office of Foreign Assets Control
Publication Date: February 16, 2024
Press Release
OFAC issued a compliance communiqué – Guidance for the Provision of Humanitarian-Related Assistance and Critical Commodities to the Yemeni People – in response to questions from the nongovernmental organization (NGO) community and others on how to ensure trade and humanitarian assistance continue to flow to the Yemeni people in light of recent Houthi attacks against international maritime vessels operating in and through the Red Sea and the Gulf of Aden.
Global Magnitsky Sanctions
Agency: Department of the Treasury,Office of Foreign Assets Control
Publication Date: March 11, 2024
Effective Date: March 12, 2024
Press Release
(Federal Register notice available here)
OFAC amended and reissued the Global Magnitsky Sanctions Regulations (regulations) to further implement the Global Magnitsky Human Rights Accountability Act and a December 20, 2017 executive order related to human rights and corruption. The newly reissued regulations are more comprehensive and include additional interpretive guidance, definitions, general licenses and other regulatory provisions. The regulations implement sanctions targeting persons determined to meet the criteria specified in Section 583.201(a) of the regulations, namely persons listed in the Annex to Executive Order 13818 - Blocking the Property of Persons Involved in Serious Human Rights Abuse or Corruption.
North Korea Sanctions
Agency: Department of the Treasury,Office of Foreign Assets Control
Publication Date: February 15, 2024
Effective Date: February 16, 2024
Press Release
(Federal Register notice available here)
OFAC amended the North Korea Sanctions Regulations (NKSR), 31 CFR Part 510, to revise or add general licenses to facilitate certain humanitarian-related and journalistic activities. Specifically, OFAC amended an existing general license for NGOs and added general licenses to authorize certain transactions related to the exportation and reexportation of items authorized by the U.S. Department of Commerce; the provision of certain agricultural commodities, medicines and medical devices; and certain journalistic activities in North Korea. Luxury goods defined in Section 746.4(b)(1) of the Export Administration Regulations are excluded from the general license authorization. For additional detail on the scope and use of the general licenses, please refer to Section 510.512 and Sections 510.520 – 522 of the NKSR.
Venezuela Sanctions
Agency: Department of the Treasury, Office of Foreign Assets Control
Press Releases:
Effective Date: January 29, 2024 - Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A.
Effective Date: February 29, 2024 (GL 45B) - CVG Compania General de Mineria de Venezuela CA
OFAC issued general licenses to authorize certain repatriation transactions and activities related to winding down transactions with the following Venezuelan entities: Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A. (Consorcio Venezolano) (see General License 45B) and CVG Compania General de Mineria de Venezuela CA (Minerven) (see General Licenses 43A). U.S. persons were previously authorized to engage in transactions with the state-owned gold mining company Minerven (General License 43) and Consorcio Venezolano (General License 45A), but OFAC has revoked the general licenses and is now requiring U.S. persons to wind down any activities with the entities.
West Bank Sanctions
Agency: Department of the Treasury, Office of Foreign Assets Control
Publication Date: February 1, 2024
Press Release
President Biden signed a new executive order, titled “Imposing Certain Sanctions on Persons Undermining Peace, Security, and Stability in the West Bank.” The order, among other things, authorizes OFAC to designate and block the property of persons determined to be involved in the acts of violence or destruction of property in the West Bank. In addition, West Bank-related additions were made to the SDN List, and FinCEN published a new advisory regarding the financing of extremist violence against Palestinians in the West Bank.
The authors acknowledge with thanks the assistance of Dr.Bálint Bordács in preparing this report.
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