Frequently Asked Questions

673. What is the purpose of Executive Order (E.O.) 13883, “Administration of Proliferation Sanctions and Amendment of Executive Order 12851”?

673 … E.O. 13883 delegates to the Secretary of the Treasury the implementation of the sanctions related to multilateral development bank assistance and to United States bank loans that are contained in the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, as amended (“CBW… Read more

674. What action did the U.S. government take under the CBW Act on August 2, 2019?

674 … Following the chemical weapons attack in Salisbury, United Kingdom, the Department of State, acting under the CBW Act pursuant to authority delegated to the Secretary of State, made a determination on August 6, 2018 that the Government of the Russian Federation had used chemical weapons in… Read more

675. How does OFAC implement sanctions related to U.S. bank loans imposed on Russia pursuant to the CBW Act?

675 … Pursuant to Executive Order (E.O.). 13883 , 31 CFR § 544.802, and the CBW Act, on August 2, 2019, OFAC issued a Russia-Related Directive (the “CBW Act Directive”) , which prohibits U.S. banks from participating in the primary market for non-ruble denominated bonds issued by the Russian… Read more

676. What do the CBW Act Directive terms “U.S. bank” and “Russian sovereign” mean?

676 … The CBW Act Directive defines the term “U.S. banks.” This definition is consistent with section 4(c) of Executive Order (E.O.) 13883 , and with the definition of “U.S. financial institution” at 31 CFR § 544.311. The CBW Act Directive defines the term “Russian sovereign” as any ministry,… Read more

677. How does OFAC’s CBW Act Directive impose costs on the Government of the Russian Federation?

677 … The CBW Act Directive imposes long-term costs on Russia for its brazen use of chemical weapons and its failure to meet the conditions described in the CBW Act, including the failure to provide reliable assurances that Russia would not engage in future chemical weapons attacks. The Government… Read more

678. Does the CBW Act Directive prohibit participation in the secondary market for Russian sovereign debt?

678 … No, the CBW Act Directive does not prohibit U.S. banks from participating in the secondary market for Russian sovereign debt. However, independent of the CBW Act Directive, OFAC has imposed prohibitions on certain Russia-related sovereign entities subject to the CBW Act Directive, pursuant… Read more

651. What happened to the Petróleos de Venezuela, S.A. (PdVSA) bonds, or bonds issued by any entity directly or indirectly owned 50 percent or more by PdVSA, that were previously included in the Annex to General License 3?

651 … Bonds issued by PdVSA or any entity in which it owns, directly or indirectly, a 50 percent or greater interest that was previously listed in the Annex to General License 3 (this content is no longer available) (which has been superseded by General License 3B (this content is no longer… Read more

582. I am located outside of the United States and seek to export goods from a third-country location in connection with activity for the maintenance or wind down of contracts or agreements with an entity listed on General License 12B (or any other entity in which a listed entity in 12B owns, directly or indirectly, a 50 percent or greater interest). Are such exports excluded from the authorization in General License 12B or otherwise subject to section 10 of SSIDES, as amended by section 228 of CAATSA, or section 5 of UFSA, as amended by section 226 of CAATSA?

582 … No. Although General License 12B does not authorize the exportation of goods from the United States, paragraph (d)(4) of General License 12B does not similarly apply to the exportation of goods from a third country to another location. … I am located outside of the United States and seek to… Read more

583. Why is OFAC issuing General License 12B, and what new activity does it authorize?

583 … OFAC issued General License 12B to address difficulties blocked U.S. persons are having accessing funds needed for authorized wind-down and maintenance activities. General License 12B explicitly permits originating and intermediary U.S. financial institutions to process funds transfers that… Read more

585. May U.S. persons do business with a foreign company in which blocked persons hold, individually or in the aggregate, a less than 50 percent interest? Are foreign persons, including foreign financial institutions, subject to sanctions under section 10 of SSIDES, as amended by section 228 of CAATSA, and section 5 of UFSA, as amended by section 226 of CAATSA, for doing business with a foreign company in which blocked persons hold, individually or in the aggregate, a less than 50 percent interest?

585 … If one or more blocked persons does not hold, individually or in the aggregate, a 50 percent or greater interest in a foreign company, the foreign company is not itself blocked by virtue of OFAC’s 50 percent rule , and U.S. persons generally are not prohibited from engaging in transactions… Read more

Frequently Asked Questions

Office of Terrorism and Financial Intelligence