Counter Terrorism Sanctions

Yes. In general, any transaction or dealing by a U.S. person in any property or interests in property of persons designated as SDGTs under or otherwise blocked pursuant to E.O. 13224 is prohibited. Such property includes artwork and other information and information materials. Certain exemptions available under the International Emergency Economic Powers Act (IEEPA) relating to personal communications, humanitarian donations, information or informational materials, and travel do not apply to transactions with SDGTs or persons otherwise blocked pursuant to E.O. 13224.

For purposes of these prohibitions, U.S. persons include all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, and all U.S.-incorporated entities and their foreign branches. U.S. persons who engage in prohibited transactions with SDGTs or with persons otherwise blocked pursuant to E.O. 13224 may be subject to civil or criminal penalties.

Non-U.S. persons who engage in prohibited transactions or dealings subject to U.S. jurisdiction with SDGTs or with persons otherwise blocked pursuant to E.O. 13224 may be subject to civil or criminal penalties, and may also risk being sanctioned by OFAC. Foreign financial institutions may also be subject to correspondent and payable through account sanctions if they knowingly facilitate significant transactions for or on behalf of an SDGT.

U.S. persons (including galleries, museums, private art collectors, auction companies, and others that conduct or facilitate transactions involving artwork) must ensure that they do not engage in transactions with persons listed as Specially Designated Global Terrorists (SDGTs) on OFAC’s SDN List or with persons otherwise blocked pursuant to E.O. 13224, unless authorized by OFAC. U.S. persons should develop a tailored, risk-based compliance program, which may include sanctions list screening or other appropriate measures. An adequate compliance solution will depend on a variety of factors, including the type of business involved, and there is no single compliance program or solution suitable for every circumstance. For purposes of these requirements, U.S. persons include all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, and all U.S.-incorporated entities and their foreign branches. U.S. persons who engage in prohibited transactions may be subject to civil or criminal penalties. Non-U.S. persons who engage in prohibited transactions subject to U.S. jurisdiction with SDGTs or persons otherwise blocked pursuant to E.O. 13224 may be subject to civil or criminal penalties, and also risk being sanctioned by OFAC. Foreign financial institutions may be subject to correspondent and payable through account sanctions if they knowingly facilitate significant transactions for or on behalf of a SDGT. The names of, and identifying information for, all individuals and entities included on OFAC’s sanctions lists may be located via OFAC’s free, online search engine at the following URL: http://sanctionssearch.ofac.treas.gov. In addition, OFAC offers text and PDF versions of these lists for manual review and a number of data file versions of its lists that are designed to facilitate automated screening. Depending on the scale, sophistication, and risk profile of your business, you may consider one of the numerous commercially available screening software packages.

Once it has been determined that you or your institution is holding or is in possession of artwork that is the property of an SDGT or a person otherwise blocked pursuant to E.O. 13224, or in which such a person has an interest, you or your institution must ensure that access to that artwork is denied to the SDGT or blocked person and that your institution complies with OFAC regulations related to blocked assets, including restrictions on the sale or transfer of the artwork to third parties. Pursuant to 31 CFR section 501.603, blocked property, physical or financial, must be reported to OFAC within 10 business days; U.S. persons must also comply with all other applicable reporting obligations. See FAQs 49 and 50. Questions about whether a transaction should be blocked should be directed to the OFAC Compliance Hotline.

GL 21B authorizes all activities otherwise prohibited by the Global Terrorism Sanctions Regulations (GTSR), 31 CFR part 594, that are ordinarily incident and necessary to the limited safety and environmental activities described in paragraph (a) of GL 21B involving certain blocked persons and vessels through 12:01 a.m. eastern daylight time, April 13, 2023.  GL 21B does not authorize the offloading of any cargo onboard any of the blocked vessels listed in GL 21B, and any payment of claims to or for the benefit of any blocked persons or vessels would require a specific license from OFAC.  

After the expiration of GL 21B, U.S. persons will be prohibited from engaging in any transactions with the blocked persons or vessels listed in GL 21B, unless otherwise exempt or authorized by OFAC.  U.S. persons unable to conclude transactions authorized by GL 21B before 12:01 a.m. eastern daylight time, April 13, 2023, are encouraged to seek guidance from OFAC.  

Non-U.S. persons, including foreign financial institutions, generally do not risk exposure to sanctions for engaging in transactions with blocked persons where those transactions would not require a specific license if engaged in by a U.S. person.  Non-U.S. persons unable to conclude transactions authorized by GL 21B before 12:01 a.m. eastern daylight time, April 13, 2023, are encouraged to seek guidance from OFAC.

Date Updated: January 12, 2023

Wind down transactions:  GL 27 authorizes all transactions prohibited by the GTSR that are ordinarily incident and necessary to the wind down of any transaction involving Fly Baghdad through 12:01 a.m. eastern daylight time, March 22, 2024, provided that any payment to Fly Baghdad must be made into a blocked account in accordance with the GTSR.  This includes transactions necessary to wind down leases, refueling contracts, and other commercial agreements with Fly Baghdad or to repossess aircraft leased to Fly Baghdad. 
U.S. persons are not required to seek a license from OFAC to initiate legal proceedings against Fly Baghdad, including lawsuits for the repossession of aircraft from Fly Baghdad, although a specific license is required to enter into a settlement or enforce an order transferring property blocked pursuant to the GTSR. 
Civil aviation safety transactions:  GL 27 authorizes all transactions prohibited by the GTSR that are ordinarily incident and necessary to the provision, exportation, or re-exportation of goods, technology, or services to ensure the safety of civil aviation involving Fly Baghdad through 12:01 a.m. eastern daylight time, March 22, 2024, provided that the goods, technology, or services are for use on aircraft operated solely for civil aviation purposes.  This includes transactions necessary to ensure the safety of aircraft crew and passengers and the safe operation of aircraft owned or operated by Fly Baghdad and used solely for civil aviation purposes, including maintenance, insurance, and ground services ordinarily incident and necessary to such activities. 
U.S. and non-U.S. persons may need to obtain a license from the Department of Commerce’s Bureau of Industry and Security (BIS) for the export or reexport or certain items subject to the Export Administration Regulations (EAR) involving Fly Baghdad or other Specially Designated Global Terrorists (SDGTs).  For further guidance regarding the exportation or re-exportation of items involving SDGTs, please contact BIS at Foreign.Policy@bis.doc.gov.

OFAC implemented State's designation of Ansarallah ("the Houthis") as an FTO by updating the existing Ansarallah entry on the Specially Designated Nationals and Blocked Persons List (SDN List). Ansarallah was already listed on the SDN List as a result of State's February 16, 2024 designation of the group as a Specially Designated Global Terrorist (SDGT).

OFAC also updated three Ansarallah-related general licenses (GLs) to authorize certain transactions under the Foreign Terrorist Organizations Sanctions Regulations (FTOSR) (31 C.F.R. part 597): agricultural commodities, medicine, and medical devices (GL 22A); noncommercial, personal remittances (GL 24A); and third-country diplomatic missions (GL 28A). 

OFAC also amended three additional Ansarallah-related GLs. Specifically, OFAC issued GL 25A, which winds down the previously issued GL by authorizing the delivery and offloading of refined petroleum products in Yemen through 12:01 a.m. eastern daylight time April 4, 2025, provided such products were loaded on a vessel prior to March 5, 2025. Authorizations in GL 25A replace and supersede previous authorization for transactions related to the provision of refined petroleum products in GL 25. Additionally, OFAC issued GL 26A to exclude refined petroleum products from goods that can be imported or exported through ports and airports in Yemen. OFAC also issued GL 23A, which eliminates the previous authorization of transactions for the receipt or transmission of telecommunications to or from Yemen and now only authorizes transactions within Yemen for the receipt or transmission of telecommunications involving Ansarallah. 

The above GLs supplement broad preexisting humanitarian GLs in the Global Terrorism Sanctions Regulations (GTSR) and FTOSR covering the United States government, certain international organizations and entities, nongovernmental organizations (NGOs), and for the provision of food, other agricultural commodities, medicine, and medical devices for personal, non-commercial use. For more information on these baseline humanitarian general licenses, please consult OFAC's Supplemental Guidance for the Provision of Humanitarian Assistance, and FAQs 1105, 1106, 1107, and 1108. Other humanitarian-related guidance documents are available in the NGO section of OFAC's Information for Industry Groups webpage. Note that activities authorized by GLs issued by OFAC do not relieve persons from compliance with any other laws or requirements of other federal agencies. 

As a result of OFAC's amendments to Ansarallah-related GLs in conjunction with the FTO designation, OFAC has also removed OFAC's Compliance Communiqué: Guidance for the Provision of Humanitarian-Related Assistance and Critical Commodities to the Yemeni People.

Non-U.S. persons may engage in or facilitate transactions for which a U.S. person would not require a specific license pursuant to the GTSR or FTOSR without exposure to sanctions under the GTSR or FTOSR.

OFAC prioritizes specific license applications and requests for guidance related to humanitarian activity. OFAC encourages anyone with questions to reach out to the OFAC Compliance Hotline.