OFAC reverses stance on conference sanctions after free speech challenge

The US Treasury’s Office of Foreign Assets Control (‘OFAC’) has determined that the inclusion of sanctioned individuals as conference speakers at oversees events organised by US citizens is not prohibited when no financial transactions or services are involved, revoking a denial of an application made in 2022. 

The determination, issued 12 November, came in response to a lawsuit by The Foundation for Global Political Exchange (‘GPE’), which challenged OFAC’s 2022 denial of permission to host sanctioned Lebanese political figures at its Beirut Exchange conference.

‘OFAC does not seek to prohibit the type of conduct described,’ Acting Director Lisa Palluconi wrote, adding a proviso that organisations must not engage in financial transactions with blocked persons, provide them goods or services, act on their behalf, or offer specialised training.

The reversal followed GPE’s successful argument that its conferences, which bring together diverse political voices including rival factions across the Middle East, are protected by First Amendment rights. The foundation has hosted events featuring speakers ranging from Hizballah representatives to their political opponents.

However, OFAC warned it remains ‘aware of instances where sanctioned persons have used conferences to engage in conduct that threatens U.S. national security,’ including recruitment, intelligence gathering, or providing instruction on sanctions evasion.

https://storage.courtlistener.com/recap/gov.uscourts.dcd.263153/gov.uscourts.dcd.263153.39.1.pdf