October 22, 2015: New FAQ regarding Iranian Diplomatic Missions

On the 22nd, OFAC issued a new FAQ regarding the JCPOA and delivery of routine goods and services by non-US persons to diplomatic missions of the Iranian government:

455. Is the provision of routine goods and services by non-U.S. persons to diplomatic missions of the Government of Iran located outside the United States sanctionable under U.S. law?

The provision of goods and services for the conduct of the official business of the diplomatic missions of the Government of Iran located outside the United States or for the personal use of the employees of the missions, including financial services such as the opening of a bank account, by a non-U.S. person would not be sanctionable under U.S. law, provided that such goods and services do not involve persons on OFAC’s List of Specially Designated Nationals and Blocked Persons (other than any political subdivision, agency, or instrumentality of the Government of Iran listed solely pursuant to Executive Order 13599 or any Iranian depository institution listed solely pursuant to Executory Order 13599) or other activities that would be sanctionable under U.S. law.

Further, the provision of goods and services to the diplomatic missions of the Government of Iran outside the United States cannot involve U.S. persons or U.S.-owned or -controlled foreign entities, or the provision to the Government of Iran of goods, technology, or services subject to the prohibitions of 31 C.F.R. §§ 560.204-205, nor can related transactions transit the U.S. financial system, unless the activities and/or transactions are authorized by OFAC. [10-22-2015]

Hope that clears things up…. Domino's, you still can't deliver to an Iranian diplomatic mission, no matter how fast you get it there…

Links:

OFAC Notice

JCPOA FAQ of October 22, 2015

 

October 22, 2015: HK SFC Circular announces 3 1/2 AML/CFT seminars

Here's the text of the circular from the Hong Kong Securities and Futures Commission:

Circular to Licensed Corporations and Associated Entities

Anti-Money Laundering / Counter-Terrorist Financing

Anti-Money Laundering and Counter-Terrorist Financing Seminars

The SFC will host three half-day anti-money laundering and counter-terrorist financing (“AML/CFT”) seminars on 18, 24 and 30 November 2015 respectively. The seminars will be held at the Lecture Theatre, G/F, Hong Kong Central Library, Causeway Bay.

Objectives & Rundown

The objectives of the seminars are-

    • To provide updates on AML/CFT regulatory developments; and
    • To promote and enhance the understanding of the application of risk-based approach to AML/CFT measures, and carrying out of risk assessment and proportionate customer due diligence and transaction monitoring.

Please refer to Appendix 1 for rundown and speakers of the seminars.

Who should attend

You are invited to nominate relevant management / supervisory personnel and compliance officers to attend. The seminar is free of charge and 3 CPT hours will be offered to those who attend the whole session.

Enrolment

Each firm should only submit one enrolment form. Please complete and return the attached enrolment form (Appendix 2) on or before 4 November 2015 by fax at 2293 4087 or email at aml_seminar@sfc.hk.

Enrolments are subject to a maximum of 2 places per firm. As seats are limited, we will attempt to allocate the nominees listed as first priority in all enrolment forms received by the deadline on a first come first served basis. Any remaining seats will be allocated to the other nominees and if possible, according to their time of preference.

The SFC will send the confirmation slip by email and / or fax directly to successful applicants at least two days before the seminar. Please present your confirmation slip for admission at the venue.

If you have any queries, please contact Ms Kiki Wong at 2231 1569.

Intermediaries Supervision Department

Intermediaries Division

Securities and Futures Commission

Links:

HK SFC Notice

HK SFC Circular

Agenda and List of Speakers

Registration Form – MS Word, PDF

 

October 21, 2015: OFAC issues General License for Kingpin Act sanction

This is pretty rare – having a general license for a non-country sanctions program. This one is pretty straightforward – it authorizes transactions in order to wind down the operations of Banco Continental, which was seized by Honduran regulators.

Links:

OFAC Notice

General License for wind-down operations for Banco Continental

 

October 27. 2015: EU, HMT modify Yemen sanctions listing for Ahmed Ali Abdullah Saleh

On Tuesday, Her Majesty's Treasury (HMT) implemented Council Regulation (EU) No 2015/1920 by amending the following listing in the Consolidated List:

SALEH, Ahmed, Ali, Abdullah

DOB: 25/07/1972. a.k.a: AL-AHMAR, Ahmed, Ali, Abdullah Nationality:


Yemeni Passport Details: Yemeni passport number 17979 issued under name
Ahmed Ali Abdullah Saleh. Yemeni passport number 02117777 issued on
8.11.2005 under name Ahmed Ali Abdullah Al-Ahmar. Yemeni passport number
06070777 issued on 3.12.2014 under name Ahmed Ali Abdullah Al-


Ahmar. Address: United Arab Emirates. Other Information: Former Ambassador,
former Brigadier General. Diplomatic identity card No. 31/2013/20/003140 issued
on 7.7.2013 by the United Arab Emirates' Ministry of Foreign Affairs under name
Ahmed Ali Abdullah Saleh – current status, cancelled. He is the son of the former
President of the Republic of Yemen, Ali Abdullah Saleh. Date of UN designation:
14.04.2015. Listed on: 09/06/2015 Last Updated: 27/10/2015 Group ID: 13254.

sanctioned under the Yemen sanctions program.

Links:

HMT Notice

Council Regulation (EU) No 2015/1920

 

October 23, 2015: SL, ELN & FARC renewed under TAFA

On Friday, Her Majesty's Treasury (HMT) renewed the Final Designations under the Terrorist Asset-Freezing etc. Act 2010 (TAFA) for another year for the following 3 South American terror groups:

  1. EJERCITO DE LIBERACION NACIONAL (ELN)
    a.k.a:
    National Liberation Army Other Information: Both UK listing and EU listing. Listed
    on:
    02/11/2001 Last Updated: 22/10/2015 Group ID: 7364.

  2. FUERZAS ARMADAS REVOLUCIONARIAS DE COLOMBIA
    a.k.a:
    (1) FARC (2) Revolutionary Armed Forces of Colombia Other Information: Both UK
    listing and EU listing.
    Listed on: 02/11/2001 Last Updated: 22/10/2015 Group ID: 7418.

  3. SENDERO LUMINOSO (SL)
    a.k.a:
    Shining Path Other Information: Both UK listing and EU listing. Listed on:
    02/11/2001 Last Updated: 22/10/2015 Group ID: 7440.

Link:

HMT Notice

 

October 22, 2015: Fraudulent Citibank (Hong Kong) Website

Press Releases
Fraudulent website related to Citibank (Hong Kong) Limited

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by Citibank (Hong Kong) Limited on fraudulent website, which has been reported to the HKMA. Hyperlink to the press release is available on the HKMA website for ease of reference by members of the public.

Anyone who has provided his or her personal information to the website concerned or has conducted any financial transactions through the website should contact the bank concerned using the contact information provided in the press release, and report to the Police or contact the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force at 2860 5012.

Hong Kong Monetary Authority

22 October 2015

Link:

HKMA Notice

 

OFAC’s JCPOA FAQ document

In its entirety…

October 18, 2015

FREQUENTLY ASKED QUESTIONS RELATING TO ADOPTION DAY
UNDER THE JOINT COMPREHENSIVE PLAN OF ACTION

Q: What is Adoption Day?


A:
Adoption Day, which is October 18, 2015, marks the date on which the Joint Comprehensive

Plan of Action (JCPOA) comes into effect.

Beginning on Adoption Day, JCPOA participants will start taking the steps necessary to
implement their JCPOA commitments. Importantly, Iran will now begin taking the nuclear-
related measures set forth in the JCPOA, and the United States and European Union will begin
the necessary additional work for the implementation of their commitments with respect to
sanctions under the JCPOA. Consistent with Annex V of the JCPOA, the United States issued
two documents on Adoption Day: the President
issued a Memorandum to the Secretaries of
State, the Treasury, Commerce, and Energy to direct them to take all appropriate measures to
ensure the prompt and effective implementation of the U.S. commitments in the JCPOA; and the
Secretary of State
issued contingent waivers of certain statutory sanctions in preparation for the
implementation of U.S. commitments with respect to sanctions under the JCPOA. Importantly,
these waivers will not take effect until confirmation by the Secretary of State that the
International Atomic Energy Agency (IAEA) has verified that Iran has implemented its key
nuclear-related measures described in the JCPOA (Implementation Day).

Q: Do the waivers that were issued on Adoption Day result in the lifting of any sanctions on
Adoption Day?

A: No. The waivers issued on Adoption Day are contingent on Iran verifiably taking key
nuclear-related steps outlined in the JCPOA, and the waivers do not take effect until the
Secretary of State has confirmed that Iran has verifiably taken those steps. Updated guidance
from the Department of the Treasury’s Office of Foreign Assets Control (OFAC) will reflect this
change once it occurs.

The only easing of sanctions in effect before Implementation Day continues to be that provided
for under the Joint Plan of Action
of November 24, 2013, as extended. Until Implementation
Day, all other U.S. sanctions remain in effect, and certain activities involving Iran, such as
entering into contracts before Implementation Day with individuals and entities on OFAC’s List
of Specially Designated Nationals and Blocked Persons (SDN List), could expose the parties to
sanctions.

Q: When is Implementation Day and what will occur on that day?

A: The timing of Implementation Day and the associated sanctions lifting will depend on when
Iran fulfills its key nuclear-related commitments specified in the JCPOA. Once the IAEA
verifies that Iran has implemented these commitments under the JCPOA, the United States and
the European Union will implement the first phase of their commitments with respect to the
JCPOA, as set out in Annex V of the JCPOA.

On Implementation Day, the lifting of U.S. nuclear-related sanctions described in sections 17.1-
17.2 of Annex V of the JCPOA will occur. To make this happen, the contingent waivers issued
on Adoption Day by the Secretary of State will take effect as noted above, and certain Executive
orders will be terminated as provided for in the JCPOA.

OFAC intends to publish on its website prior to Implementation Day detailed guidance and
information on the implementation of U.S. commitments with respect to sanctions under the
JCPOA. OFAC will also update its website on Implementation Day to notify the public that the
easing of U.S. sanctions pursuant to the JCPOA is in effect.

Even after Implementation Day, U.S. persons will continue to be broadly prohibited from
engaging in transactions or dealings involving Iran, including the Government of Iran, with the
exception of a few additional categories of transactions that the
Treasury Department’s Office of
Foreign Assets Control (OFAC)
will license pursuant to the JCPOA.

Q. Would the entry by non-U.S. persons into contracts involving Iranian entities prior to
the JCPOA Implementation Day be sanctionable?

A. Until Implementation Day, all U.S. sanctions against Iran remain in effect, with the exception
of the limited relief provided for in the Joint Plan of Action, as extended. Entering into contracts
involving Iran or its government before Implementation Day may be sanctionable. In certain
circumstances, this could include contracts that are contingent on the implementation of
sanctions relief under the JCPOA, such as contracts involving individuals or entities on the SDN
List. Until Implementation Day, we will continue to vigorously enforce the sanctions that remain
in effect.

As a general matter, unless authorized by OFAC, U.S. persons are prohibited from entering into
contracts – contingent or otherwise – involving Iran or its government, including with
individuals and entities on the SDN List.