OFAC issues earthquake sanctions compliance guidance

Following on from the recent issue of General License 23 which authorised, for 180 days, transactions related to earthquake relief efforts that would otherwise be prohibited by the Syrian Sanctions Regulations, the US Office of Financial Assets Control (‘OFAC’) has issued guidance on its application.

The guidance gives examples of earthquake relief efforts as including, ‘among other things, the provision of assistance, food, medicine, water, health, sanitation, and emergency services to people displaced or injured by the earthquake; erecting temporary shelters; search and rescue operations; removing rubble from collapsed buildings; stabilizing damaged buildings; stabilizing or repairing roads and other critical infrastructure damaged in the earthquake; remediation of pollution or environmental damage; repairing or rebuilding damaged hospitals and schools in earthquake-affected areas; and building safety inspections related to assessing the structural integrity of, and damage to, buildings from the earthquake.’

Amongst other guidance it states: ‘

• U.S. persons may send funds to nonsanctioned Syrian individuals and entities for earthquake relief efforts. Moreover, in addition to activity authorized under GL 23, U.S. persons are also authorized to send noncommercial, personal remittances to Syria, subject to certain conditions.
• GL 23 authorizes all transactions related to earthquake relief efforts in Syria that would otherwise be prohibited by the Syrian Sanctions Regulations, subject to certain conditions. Building safety inspections related to assessing damage from the earthquake and prevent further collapse would be authorized.
• Subject to the conditions described in GL 23, all transactions related to earthquake relief efforts in Syria are authorized. U.S. financial institutions and U.S.-registered money transmitters may rely on the originator of a funds transfer with regard to compliance with the terms of GL 23, provided that the financial institution does not know or have reason to know that the funds transfer is not in compliance with the terms of GL 23.’

The guidance also states that, while NGOs can fund earthquake relief efforts by ‘search and rescue units affiliated with the Government of Syria,’ and pay taxes to the Government of Syria in connection with the earthquake relief efforts, GL 23 ‘does not authorize transactions involving other persons blocked pursuant to the Syrian Sanctions Regulations, including corporations, partnerships, associations, or other entities directly or indirectly owned or controlled by the Government of Syria.’

https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20230221