2. Disclaimer
• The information provided is believed to be accurate
as of the date of the presentation, but is subject to
change without notice
• This presentation is designed for informational
purposes only and is not intended to be, nor should it
be deemed, specific legal advice. If such advice is
required, please consult with qualified legal counsel
3. U.S. Economic Sanctions
Office of Foreign Assets Control (OFAC)
-Administers, enforces economic/trade sanctions against
foreign governments, government officials, persons/entities
and placed on the SDN List
-Financial expertise – blocking/freezing assets; title remains
with sanctioned target
-Broad prohibitions on transfers/transactions
4. SDN List
• Specially Designated Nationals List – updated 10 Jan. 2014
http://www.treasury.gov/ofac/downloads/t11sdn.pdf
• Individuals and companies owned/controlled by or acting
for/on behalf of targeted countries
• Individuals, groups, and entities, (terrorists and narcotraffickers)
• Assets are blocked and U.S. persons are generally prohibited
from dealing with SDNs
5. SDN List Entrants
•
CARIBBEAN EXPORT ENTERPRISE (a.k.a. CARIBEX; a.k.a. EMPRESA CUBANA
DE PESCADOS Y MARISCOS), Paris, France; Milan, Italy; Moscow, Russia;
Madrid, Spain; Cologne, Germany; Downsview, Ontario, Canada; Tokyo, Japan
[CUBA]
•
ASH TRADING, INC., 14420 NW 16TH St., Pembroke Pines, FL 33028; US FEIN
65-1128351; Business Registration Document #P01000078571 (United
States) [SDNT]
•
ASSA (a.k.a. ASSA CORP.), New York, NY; Additional Sanctions Information Subject to Secondary Sanctions; Tax ID No. 1368932 (United States) [NPWMD]
[IFSR]
•
BEIJING ALITE TECHNOLOGIES CO., LTD. (a.k.a. ALCO; a.k.a. BEIJING HAILI
LIANHE KEJI YOUXIAN GONGSI), 12A Beisanhuan Zhong Road, P.O. Box 3042,
Beijing, China; Additional Sanctions Information - Subject to Secondary
Sanctions; and all other locations worldwide [NPWMD] [IFSR]
•
AA ENERGY FZCO, United Arab Emirates; Additional Sanctions Information Subject to Secondary Sanctions [IRAN].
6. OFAC Licensing
• Specific v. General License – authorization to
engage in transactions otherwise prohibited
• OFAC License Application Page
http://www.treasury.gov/resource-center/sanctions/Pages/licensing.aspx
– Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) –
agricultural commodities, medicine, or medical devices
– Cuba travel
– Blocked funds release – U.S. financial institution
– “Catchall” - Transactional
7. Specific License
• OFAC License Application Page
http://www.treasury.gov/resource-center/sanctions/Pages/licensing.aspx
– Trade Sanctions Reform and Export Enhancement Act of
2000 (TSRA) – export agricultural commodities,
medicine, or medical devices to Iran and Sudan
– Cuba travel
– Blocked funds release – U.S. financial institution
– “Catchall” – Transactional or guidance
8. TSRA License
• EAR99 only - Commodity Classification may be
required
• Online form - be prepared to disclose third-party
information:
“Please complete the requested information for all
applicants, consultants, customs brokers, forwarding
agents, intermediaries, manufacturers, shippers,
and/or suppliers involved in the export process,
including entities located in third countries (outside
the U.S. or the sanctioned country)”
9. TSRA License Transformation
• OFAC and BIS Lists - Iranian Transactions and
Sanctions Regulations, 31 CFR Part 560 (ITSR)
– OFAC List of “Basic Medical Supplies” – 25 July 2013
• General equipment (syringes, stethoscopes,
wheelchairs, hospital beds, cribs, bassinets, medical
carts, etc.)
• Apparel
Laboratory
• Dental
Sterilization
• PT/OT
Surgery
10. TSRA License Transformation
• BIS List of EAR 99 Medical Devices List – serves as CCAT with product
“clearly shown” on list
– Equipment & Supplies – training (other than CPR), oxygen apparatus
– Cardiology – pacemaker
– Dental – dentures, crowns
– Radiology – CT, PET, MRI, X-ray
– Devices with electronic components – CCATS required
• Medicines – Generally, EAR99 – No CCATS required
• Ag commodities – No CCATS required (except fertilizers, Western red
cedar, live horses)
• Food –broadly defined; Greek yogurt! No Blue!
12. TSRA License Transformation
Canadian Strategy?
- Iran Threat Reduction and Syria Human Rights Act of 2012
(ITRA) – extends sanctions to non-US subs
But…
- OFAC Guidance on the Sale of Food, Agricultural
Commodities, Medicine, and Medical Devices by Non-U.S.
Persons to Iran – 25 July 2013
- Banks and medical suppliers: “…these sales to Iran do not
trigger sanctions under U.S. law.”
13. TSRA License Transformation
But…
29 May 2013 – amendments to Canada Special
Economic Measures (Iran) Regulations. Persons
in Canada and Canadians outside of Canada:
-prohibited from exporting, selling, supplying, or
shipping goods … to Iran or to a person for the
purposes of carrying on business in or operated
from Iran
14. TSRA License Transformation
• Challenge #2: Payment
OFAC Civil Penalty Settlements since 2011
• JPMorgan Chase
• ING
• Standard Charter
• HSBC
• RBS
16. Thank you
Jon P. Yormick
Attorney and Counsellor at Law
Law Offices of Jon P. Yormick Co. LPA
jon@yormicklaw.com
Toll Free: +1.866.967.6425
Mobile: +1.216.269.5138
Buffalo | Chihuahua, Mexico† |Cleveland
†Affiliate
office
