OFAC DIRECTIVE 1 AS AMENDED SEPTEMBER 29, 2017

Business Update | October 11, 2017 | Author: Hdeel Abdelhady | PDF OFAC Further Tightens Russia Debt Prohibitions Pursuant to the Countering Russian Influence in Europe and Eurasia Act of 2017 As required by the Countering Russian Influence in Europe and Eurasia Act of 2017 (CRIEEA),[i] the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) on September 29, 2017 amended and reissued OFAC Directive 1 (Directive 1).[ii] As amended, Directive 1 continues to prohibit certain “new” debt, equity, and related transactions involving entities subject to U.S. Sectoral Sanctions targeting Russia’s financial services sector. This Business Update discusses the background to and mechanics of Directive 1 as amended and reissued. Ukraine/Russia-Related… Read More

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Banks, Credit Unions and Other Financial Insitutions as Deputized Law Enforcement

From Anti-Money Laundering to Immigration Enforcement: Time to Reassess the Law Enforcement Role of Banks, Credit Unions and Other Financial Intermediaries.  “Credit unions are deeply committed to the fight against crime, but it is important to recognize we are not law enforcement agents and we have certain fundamental limitations.” This statement, made by the Senior Vice President and General Counsel of a major U.S. credit union in testimony before Congress in July 2017,[1] reflects the legal and regulatory requirements and expectations that banks, credit unions, money services businesses, and other financial intermediaries can, must, and should play a role in combatting the misuse of the financial system for illicit purposes.… Read More

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Congressional Hearing: Managing Terrorism Financing Risk in Remittances and Money Transfers

Congressional Subcommittee to Hold Hearing on Terrorism Financing Risk in Remittances and Money Transfers  The U.S. House of Representatives Financial Services Committee (the “FSC“) Terrorism and Illicit Finance Subcommittee will on July 18, 2017 hold a hearing entitled “Managing Terrorism Financing Risk in Remittances and Money Transfers.”  The FSC memorandum to all of its members states that the “hearing will explore the terrorist and illicit financing risks that are inherent in any form of asset transfer whether through formal banking channels, MSBs, other legitimate remittance networks, or through informal and unregulated value-transfer systems.”  Concerns about the terrorism financing risks posed by non-bank facilitated money transfers have been constant since 9/11. The FSC’s memorandum describing… Read More

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Do State Regulators Like the NYDFS Have Authority to Enforce OFAC Sanctions?

Robust Enforcement of OFAC Sanctions by Federal Authorities In recent years the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and other federal authorities have robustly enforced OFAC-administered sanctions against banks, particularly U.S. branches of foreign banks. Notable for their number, successiveness, and monetary penalty amounts imposed—often for U.S. sanctions and related violations, such as of the Bank Secrecy Act—these federal enforcement actions have nevertheless been overshadowed by state enforcement actions, in particular those of the New York State Department of Financial Services (NYDFS). NYDFS Enforcement of OFAC Sanctions  The NYDFS is the New York State agency with licensing, supervisory, and enforcement authority over, among others, New… Read More

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China’s One Belt One Road Could Disrupt U.S. Legal Dominance

On May 14, 2017, President Xi Jinping of China outlined plans to fund China's One Belt, One Road (OBOR) initiative. If successful, OBOR would alter the global trade landscape and, secondarily, likely curtail the global reach of U.S. law. The potential legal effects of the OBOR and other non-U.S. dollar- and Bretton Woods system-centric trade and finance initiatives were discussed in an earlier MassPoint Occasional Note. Given President Xi's fresh announcement of concrete plans to carry forward the OBOR project, MassPoint's earlier discussion of the project's potential curtailment of the global reach of U.S. law-- and the links between U.S. dollar and financial system strength and the global reach of U.S. law--… Read More Continue Reading

Event: IRAN AFTER PARTIAL SANCTIONS RELIEF AND U.S. ELECTIONS

November 16, 2016 Panel Discussion Iran After Partial Sanctions Relief and U.S. Elections: Legal, Risk, and Practical Issues for Business

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