Frequently Asked Questions

900. Executive Order (E.O.) 13959, as amended, authorizes the imposition of certain sanctions on persons who operate or have operated in the surveillance technology sector of the economy of the People’s Republic of China (PRC). For the purposes of E.O. 13959, as amended, how will OFAC target those who operate or have operated in this sector?

900 … Pursuant to E.O. 13959, as amended, OFAC expects to use its discretion to target, in particular, persons whose operations include or support, or have included or supported, (1) surveillance of persons by Chinese technology companies that occurs outside of the PRC; or (2) the development,… Read more

901. Under Executive Order (E.O.) 13959, as amended, what level of due diligence must U.S. persons, including market intermediaries and other participants, undertake to assess whether an underlying purchase or sale is prohibited under E.O. 13959, as amended?

901 … For purposes of assessing whether certain purchases or sales are permissible under E.O. 13959, as amended, U.S. persons — including financial institutions, registered broker-dealers in securities, securities exchanges, and other market intermediaries and participants — may rely upon the… Read more

902. Under Executive Order (E.O.) 13959, as amended, are U.S. persons prohibited from providing investment advisory, investment management, or similar services to a non-U.S. person, including a foreign entity or foreign fund, in connection with the non-U.S. person’s purchase or sale of covered securities of Chinese Military-Industrial Complex Companies (CMICs)?

902 … U.S. persons are not prohibited from providing investment advisory, investment management, or similar services to a non-U.S. person, including a foreign entity or foreign fund, in connection with the non-U.S. person’s purchase or sale of a covered security, provided that the underlying… Read more

903. Do the prohibitions of Executive Order (E.O.) 13959, as amended, apply to U.S. persons who are employed by non-U.S. entities and who, in the ordinary course of their employment, are involved in purchases or sales of Chinese Military-Industrial Complex Companies’ (CMICs) securities on behalf of their non-U.S. employer?

903 … For purposes of E.O. 13959, as amended, U.S. persons employed by non-U.S. entities are not prohibited from being involved in, or otherwise facilitating, purchases or sales related to a covered security on behalf of their non-U.S. employer, provided that such activity is in the ordinary course… Read more

904. Under Executive Order (E.O.) 13959, as amended, are U.S. market makers permitted to facilitate divestment from publicly traded securities of Chinese Military-Industrial Complex Companies (CMICs)?

904 … Yes. U.S. market makers, and non-U.S. market makers who employ U.S. persons, are permitted to engage in activities that are necessary to effect divestiture during the during the 365-day periods in which divestment transactions are permitted or that are not otherwise prohibited under E.O.… Read more

905. Does Executive Order (E.O.) 13959, as amended, prohibit U.S. persons from engaging in all activities with companies listed on the Non-SDN Chinese Military-Industrial Complex Companies List (the "NS-CMIC List")?

905 … No. The prohibitions of E.O. 13959, as amended, apply only with respect to certain purchases or sales of publicly traded securities of entities listed on the NS-CMIC List. E.O. 13959, as amended, does not prohibit activity with entities listed on the NS-CMIC List that is unrelated to such… Read more

865. May market intermediaries and other participants facilitate divestment from publicly traded securities of Chinese Military-Industrial Complex Companies (CMICs), including divestment by investment fund managers?

865 … Yes. Market intermediaries, including market makers, and other participants may engage in ancillary or intermediary activities that are necessary to effect divestiture during the relevant wind-down periods or that are not otherwise prohibited under E.O. 13959, as amended. Purchases or sales… Read more

871. What are the compliance obligations of securities exchanges operated by U.S. persons with respect to Executive Order (E.O.) 13959, as amended?

871 … Consistent with FAQ 865 , which clarifies that market intermediaries and other participants may engage in ancillary or intermediary activities that are necessary to effect divestiture during the relevant wind-down periods or that are not otherwise prohibited under E.O. 13959, as amended,… Read more

Frequently Asked Questions

Office of Terrorism and Financial Intelligence