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OFAC Sanctions Should Report to OFAC

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OFAC Sanctions Should Report to OFAC FOREIGN ASSETS CONTROL REGULATIONS FOR EXPORTERS AND IMPORTERS I. Introduction............................................................................................................................................................ 2 II. OFAC Laws, Embargoed Countries, and Criminal Penalties............................................................................... 2 III. Civil Penalties ....................................................................................................................................................... 2 IV. Electronic Information.......................................................................................................................................... 3 V. Terminology A--Blocking ...................................................................................................................................................... 3 B--Blocked Account ......................................................................................................................................... 3 C--General License ........................................................................................................................................... 3 D--Specific License .......................................................................................................................................... 3 E--Offset............................................................................................................................................................ 3 F--Property........................................................................................................................................................ 3 G--Person Subject to the Jurisdiction of the United States ..............................................................................4 H--Specially Designated Nationals................................................................................................................... 4 I--Census .......................................................................................................................................................... 4 VI. Corporate Responsibility by Country A--CUBA.......................................................................................................................................................... 4 B--NORTH KOREA......................................................................................................................................... 8 C--LIBYA ......................................................................................................................................................... 9 D--IRAQ ............................................................................................................................................................9 E--IRAN............................................................................................................................................................20 F--TERRORI SM (SDGTs, SDTs, FTOs).......................................................................................................23 G--NARCOTICS (SDNTs, SDNTKs).............................................................................................................26 H--BURMA (MYANMAR) .............................................................................................................................30 I--SUDAN.........................................................................................................................................................31 J--NONPROLIFERATION ..............................................................................................................................35 K--DIAMOND TRADING...............................................................................................................................37 L--FORMER LIBERIAN REGIME OF CHARLES TAYLOR......................................................................38 M--THE BALKANS.........................................................................................................................................39 N--ZIMBABWE ...............................................................................................................................................41 O--SYRIA.......................................................................................................................................................43 P--C]TE D'IVOIRE........................................................................................................................................46 Q-- BELARUS................................................................................................................................................. 48 R --DEMOCRATIC REPUBLIC OF THE CONGO...................................................................................... 50 VII. Reporting and Procedures (including TD F 90-22.50) .......................................................................................51 I. Introduction feiture of funds or other property involved in violations [In addition, 18 U.S.C. §§ 3571 provides that organizations or individuals convicted of The Office of Foreign Assets Control (OFAC) administers a series of violating a criminal statute may be fined the greater of the amount speci- laws that impose economic sanctions against hostile targets to further fied in the statute, or twice the pecuniary gain or loss from the violation, U.S. foreign policy and national security objectives. Economic sanctions or $500,000 for felonies and that individuals may be fined $250,000 for are powerful foreign policy tools. Their success requires the active partic- felonies]; ipation and support of U.S. companies. The use of sanctions by the U.S. goes back to the earliest days of the Republic through trade embargoes, E——International Security and Development Cooperation Act blocked assets controls, and other commercial and financial restrictions. (“ISDCA”) codified at 22 U.S.C. 2349 aa-9 (Iran) has no criminal penal- Many of them have been multilateralized within the global community ties, but general Customs and other relevant penalty provisions may ap- against pariah countries, as well as being used against groups, such as ply to particular circumstances; narcotics traffickers and terrorists, who threaten the security, economy, and safety of the United States. Management of sanctions on the U.S. side F—— The Cuban Democracy Act (“CDA”), 22 U.S.C. §§ 6001-10 [re- is entrusted to the Secretary of the Treasury. lating to Cuba] has the same fines as TWEA above; While OFAC is responsible for promulgating, developing, and adminis- G—— The Cuban Liberty and Democratic Solidarity (“LIBERTAD”) tering the sanctions for the Secretary under eight basic statutes, other reg- Act, 22 U.S.C. 6021-91, [relating to Cuba] has the same fines as TWEA ulatory agencies, including Export Enforcement in Commerce and the above and codifies the Cuban Assets Control Regulations; U.S. Customs Service, cooperate in ensuring corporate compliance with the Regulations. H—— The Antiterrorism and Effective Death Penalty Act, (enacting 8 U.S.C. 219, 18 U.S.C. 2332d and 18 U.S.C. 2339b) [Cuba, North Korea, OFAC has designed this brochure to provide convenient, concise, Iran, Iraq, Syria, and Sudan] provides for criminal penalties of $500,000 up-to-date, helpful information about its programs, including informa- per count against corporations, and ten years imprisonment and/or tion on the laws and regulations OFAC administers. We have tried to be $250,000 per count for individuals, for willful violations; complete and accurate. We must caution readers, however, that there is no substitute for reading the actual statutes, regulations, and other docu- I—— The Foreign Narcotics Kingpin Designation Act, Pub L. No. ments that apply. Those are controlling in the event of any inconsistency 106-120, tit. VIII, 113 Stat 1606, 1626-1636 (1999) (to be codified at 21 with material in this brochure. U.S.C. §§§§ 1901-1908) provides for criminal penalties of $10,000,000 per count against corporations, and thirty years imprisonment and/or $5,000,000 per count for individuals, for wilful violations; J——The Criminal Code at 18 U.S.C. §§ 1001 provides for five years im- II. OFAC Laws, Embargoed Countries, and prisonment and a USD10,000 criminal fine for knowingly making false Criminal Penalties statements or falsifying or concealing material facts when dealing with OFAC in connection with matters under its jurisdiction. A——Trading With the Enemy Act, 50 U.S.C. App. §§§§ 1-44 (“TWEA”) [North Korea, Cuba, Transaction Control Regulations] pro- vides for ten years imprisonment, a USD1,000,000 fine for corporations, and a $100,000 fine for individuals, as well as forfeiture of funds or other property involved in violations [In addition, 18 U.S.C. §§ 3571 provides III. Civil Penalties that organizations or individuals convicted of violating a criminal statute may be fined the greater of the amount specified in the statute, or twice OFAC has authority to impose civil penalties for violations under IEEPA the pecuniary gain or loss from the violation and that individuals may be (USD50,000), TWEA (USD65,000), the Iraqi Sanctions Act fined $250,000 for felonies]; (USD325,000), and the Foreign Narcotics Kingpin Designation Act (USD1,075,000), as well as $55,000 for banking transactions under the B——International Emergency Economic Powers Act, 50 U.S.C. §§§§ Antiterrorism Act. Each set of regulations
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