Frequently Asked Questions (FAQ)
Today (Wednesday, January 27th), OFAC is issuing amendments to the Cuban Assets Control Regulation (CACR) in line with the December 2014 policy changes announced by President Obama “intended to further engage and empower the Cuban people and promote political, social, and economic reform in Cuba by easing sanctions related to, among others, travel, trade, humanitarian projects, and banking.”
OFAC has also issued updated Frequently Asked Questions (FAQs), and an updated Travel Guidance.
Links:
Financial Sanctions: Libya regime and Financial Sanctions FAQs
On 18 January 2016, the European Union adopted Council Regulation (EU) 2016/44 consolidating the existing restrictive measures into a new Regulation, thus repealing and replacing EU Regulation 204/2011. This was done for clarity, as the original Regulation had been extensively changed to reflect changes to the UN sanctions regime. The new Regulation was published on 19 January and took effect on 20 January.
HMT also updated its Financial Sanctions FAQs to fix some broken links and reflect the changes to the Iran sanctions regimes.
Links:
Council Regulation (EU) 2016/44
In particular, questions 57-61 regarding insurance were updated:
57. Are insurers that are persons subject to U.S. jurisdiction allowed to provide travel
insurance to persons subject to U.S. jurisdiction engaged in authorized travel to Cuba?Yes. See 31 CFR § 515.560.58. May persons subject to U.S. jurisdiction engaged in authorized travel to Cuba obtain travel
insurance from a third-country vendor?Yes. See 31 CFR § 515.560.59. May U.S. insurers issue policies and pay claims related to group health, life, and travel
insurance on behalf of third-country nationals traveling to or within Cuba?Yes, provided that the insurance policy is as global policy, and not specific to the third-country
national’s travel to or within Cuba. Section 515.580 of the CACR authorizes persons subject to
U.S. jurisdiction to issue or provide global health, life, or travel insurance policies for individuals
ordinarily resident in a country outside of Cuba who travel to or within Cuba, regardless of
whether the insurance policy is issued only to that individual or to a group, such as to all
employees of a particular company. For instance, a U.S. insurer may pay medical claims pursuant
to a group health insurance policy to or on behalf of a covered third-country national injured
while traveling in Cuba. However, this provision does not authorize a person subject to U.S.
jurisdiction to issue an insurance policy that is specific to travel to Cuba. A separate provision of
the CACR, 31 CFR § 515.560, authorizes the provision of health, life, and travel insurance-
related services that are specific to Cuba for authorized U.S. travelers.60. May U.S. insurers, either directly or through third-country subsidiaries, issue policies, or
pay insurance or reinsurance claims related to non-U.S. persons providing goods or services
that facilitate travel by third-country nationals from a third country to Cuba?Other than certain global health, life, or travel insurance policies for individuals authorized by 31
C.F.R. § 515.580, absent specific authorization from OFAC, U.S. insurers and their subsidiaries
are not permitted to issue policies, provide reinsurance coverage, or pay insurance or reinsurance
claims related to non-U.S. persons, including entities such as foreign airlines, providing goods or
services that facilitate travel by third-country nationals from a third country to Cuba.61. Are insurance policies that are issued to a “group” (e.g., an employer and its employees)
authorized by the CACR?Section 515.580 of the CACR authorizes global insurance policies covering individuals ordinarily
resident in a country outside of Cuba traveling to Cuba. The policy may be issued to a group,
such as all employees of a company. The “global” requirement means it cannot be specific to
travel to Cuba. For example, it does not authorize an individual travel policy issued to a traveler
specifically to cover a trip to Cuba. It also does not authorize issuing a policy to a non-U.S. travel
agent specifically to cover its traveler clients where the travel agency is solely in the business of
planning trips to Cuba.
Mr. Watchlist thinks it's bogus to have an FAQ document that says “see CFR 515.560” and the like. You have to assume some of the readers are not intimately familiar with the regulations. If you're going to do that, you should provide a link to the section, not just throw the reader to the dharks.
This reminds Mr. Watchlist of the Fall OFAC Symposium. None of the sessions were a blur of references to the Code of Federal Regulations (CFR) – except the Cuba one. Mr. Watchlist was looking at his watch a lot during that session – totally indecipherable.
Links:
OFAC Cuba Sanctions FAQ document
On Wednesday, OFAC published an updated version of its Cuban sanctions Frequently Asked Question (FAQ) document. The new question (#52) is about banks' processing of authorized travel transactions vis a vis the Cuban sanctions program:
52. Is a financial institution required to independently verify that an individual’s travel is
authorized when processing Cuba travel-related transactions?No. A financial institution may rely on U.S. travelers to provide their certifications of authorized
travel directly to the person providing travel or carrier services when processing Cuba travel-
related transactions, unless the financial institution knows or has reason to know that the travel is
not authorized by a general or specific license.The CACR requires persons subject to U.S. jurisdiction providing travel or carrier services to
retain for at least five years from the date of the transaction a certification from each customer
indicating the section of the CACR that authorizes the person to travel to Cuba. See §
515.572(b). U.S. travelers utilizing a general or specific license are also required to retain for five
years records associated with their travel to Cuba.
So, since 52 is not the last question in the document, one has to assume that all the other higher-numbered questions got renumbered.
Links:
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:
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.
The European Union issued s 13-page document of questions and answers regarding the restrictive measures imposed on Russia over its involvement in Ukraine. These include sections on financial services, the oil sector, trade finance, emergency funding, dual use goods, and capital markets activities, among other sections.
Link: