Terminology
From FINCEN's advisory on US Currency Restrictions in Mexico:
Funnel Account: An individual or business account in one geographic area that receives multiple cash
deposits, often in amounts below the cash reporting threshold, and from which the funds are withdrawn in a
different geographic area with little time elapsing between the deposits and withdrawals.
I found this reading FinCEN's typologies document for human trafficking.
Links:
A Geographic Targeting Order allows FinCEN's director to impose additional recordkeeping and reporting requirements in a limited specific area. The Order can be imposed on any number of businesses, financial services or otherwise, and is open-ended in duration.
The link below is an Order from July 30th of this year. It imposes additional requirements on cash couriers and armored car services in San Diego County, California and adjacent areas of Mexico. The Order covers the additional requirement to file FinCEN Form 105 (aka CMIR – Currency or Monetary Instruments Report).
Link:
Geographic Targeting Order of July 30, 2014
The FBAR, aka FinCEN Form 114, is the Report of Foreign Bank and Financial Accounts. It is filed by a person if the sum of the their foreign asset accounts exceeds $10,000 at any time during a calendar year. This includes bank and brokerage accounts, as well as trusts and mutual funds.
There are some exceptions – the IRS information page refers potential files to the FBAR instructions:
Link:
While going through OFAC”s IFCA FAQ, Mr. Watchlist came across a question about bunkering payments for ships. So… what is bunkering?
It's the act or process of supplying a ship with fuel., according to TheFreeDictionary.com.
More on bunkering from the Wikipedia page on fuel oil:
Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker fuel tanks. The Australian Customs and the Australian Tax Office define a bunker fuel as the fuel that powers the engine of a ship or aircraft. Bunker A is No. 2 fuel oil, bunker B is No. 4 or No. 5 and bunker C is No. 6. Since No. 6 is the most common, “bunker fuel” is often used as a synonym for No. 6. No. 5 fuel oil is also called navy special fuel oil or just navy special; No. 5 or 6 are also commonly called heavy fuel oil (HFO) or furnace fuel oil (FFO); the high viscosity requires heating, usually by a recirculated low pressure steam system, before the oil can be pumped from a bunker tank. In the context of shipping, the labeling of bunkers as previously described is rarely used in modern practice.
Since the 1980s the International Organization for Standardization (ISO) has been the accepted standard for marine fuels (bunkers). The standard is listed under number 8217, with recent updates in 2005 and 2010. They have broken it down to Residual and Distillate fuels. The most common residual fuels in the shipping industry are RMG and RMK.[4] The differences between the two are mainly the density and viscosity, with RMG generally being delivered at 380 centistokes or less, and RMK at 700 centistokes or less. Ships with more advanced engines can process heavier, more viscous, and thus cheaper, fuel. Governing bodies (i.e. California, European Union) around the world are starting to limit the maximum sulfur of fuels burned in their ports to limit pollution. This is where Marine Distillate Fuels come into play. They have similar properties to Diesel #2 which is used as road Diesel around the world. The most common grades used in shipping are DMA and DMB.[5] Greenhouse gas emissions resulting from the use of international bunker fuels are currently included in national inventories [6] [7]
Link:
The International Bunkering Industry Association
The Question (No. 289):
How will the following IFCA terms be interpreted: “Iran,” “knowingly,” “significant,” “transfer,” “Iranian person included on the SDN List ”?
The Answer:
As a general matter, we intend to rely, where applicable, on definitions of terms previously included in Treasury regulations.
“Iran”
The Iranian Financial Sanctions Regulations (31 CFR part 561) (IFSR) define “Iran” as the Government of Iran and the territory of Iran and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Iran claims sovereignty, sovereign rights, or jurisdiction, provided that the Government of Iran exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to international arrangements. (31 CFR § 561.329)
“Iranian person included on the SDN List”
OFAC anticipates publishing on its website a list to assist in identifying Iranian persons included on the SDN List for purposes of IFCA and the E.O.
“knowingly”
The IFSR define “knowingly” with respect to conduct, a circumstance, or a result, to mean that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result. (31 CFR § 561.314)
“significant”
As a general matter, in determining for purposes of IFCA and the E.O. whether transactions, financial transactions, or financial services are significant, the Department of the Treasury will rely on the interpretation set out in §561.404 of the IFSR. The IFSR provide a list of broad factors that can play a role in the determination whether transactions, financial services, and financial transactions are significant, including: (a) the size, number, and frequency of the transactions, financial services, or financial transactions; (b) the type, complexity, and commercial purpose of the transactions, financial services, or financial transactions; (c) the level of awareness of management and whether the transactions are part of a pattern of conduct; (d) the nexus of the transactions, financial services, and financial transactions and blocked persons; (e) the impact of the transactions, financial services, and financial transactions on statutory objectives; (f) whether the transactions, financial services, and financial transactions involve deceptive practices; (g) whether the transactions solely involve the passive holdings of Central Bank of Iran (CBI) reserves or repayment by the CBI of official development assistance or the transfer of funds required as a condition of Iran’s membership in an international financial institution; and (h) other relevant factors that the Secretary of the Treasury deems relevant. We anticipate adopting a similar approach to interpreting the term “significant” as it applies to goods or services.
“transfer”
“Transfer” includes import, transshipment, export, or re-export, whether direct or indirect. [06-03-13]
From thefreedictionary.com:
The process by which the meaning of an ambiguous provision of a statute, written document, or oral agreement is determined.
Here's example from the part of the NDAA 2013 that represents the IFCA statutes:
Nothing in this subtitle or the amendments made by this sub- title shall be construed to limit sanctions imposed with respect to Iran under any other provision of law or to limit the authority of the President to impose additional sanctions with respect to Iran.
So, a rule of construction tells you how to resolve potential conflicts between statutes or parts of statutes. In this case, if something is already sanctioned under some other sanctions regime, any exemption under IFCA doesn't overrule it. It's kind of like how one determines who gets the first pick when choosing teams for a pick-up baseball game – each team's captain puts their hand just above the previously-placed hand, until someone's hand is at the very top of the bat. And that person also has precedence in choosing the next player each round.
(Of course, there's a website that explains all this – including the popular “eagle claw” maneuver)