Iranian banks may now rely on Russian bank messaging services to make some international transactions while bypassing the international bank messaging system, according to a Jan. 31 report in The New York Times. Citing an Iranian central bank official interviewed by Iran’s Fars news service, the report said the move will allow both countries to get around the Society for Worldwide Interbank Financial Telecommunications (SWIFT), from which Iran has been suspended since 2018 and Russia since 2022. The report said Russian central bank officials will arrive in Iran soon to finalize details of the agreement.
The Office of Foreign Assets Control has published a group of previously issued general licenses under its Venezuela sanctions. One notice covers general licenses 6, 10 and 11; another notice covers general license 5F; and a third covers general licenses 14 and 15. The full text of each license appears in the respective notice.
The Office of Foreign Assets Control has designated six individuals and three entities connected to Burma’s military regime in conjunction with actions taken by both the U.K. and Canada, according to a Jan. 31 news release. The designations cover individuals and entities that financially support Burma's military regime, which OFAC says has "continued to use violence and oppression to deny the people of Burma the ability to choose their own leaders."
Sanctions and export controls on Russia are having an effect and policymakers should exercise patience and focus on enforcement going forward, experts said during a Jan. 31 discussion at the Atlantic Council. The event was a discussion of the impact of sanctions and export controls on the Russian economy.
The Office of Foreign Assets Control has designated the leader of a Mexico-based network and two associates for procuring precursor chemicals to manufacture and traffic fentanyl and other synthetic drugs to the U.S., according to a Jan. 30 news release.
The Treasury Department is seeking public comments on an information collection on certain reporting requirements under the financial sanctions regulations for Hezbollah. U.S. financial institutions that maintained a correspondent account or payable-through account for certain foreign financial institutions listed by the Office of Foreign Assets Control must file a report with OFAC that includes “full details on the closing of each such account, and on all transactions processed or executed through the account.” This report must be filed with OFAC within 30 days of the account's closure. Public comments are due March 1.
The State Department this week designated Ricardo Alberto Martinelli Berrocal, former president of Panama, for “significant corruption.” Martinelli pleaded guilty in 2021 for his role in a bribery scheme that violated the Foreign Corrupt Practices Act (see 2112150016). The designation also applies to Martinelli's immediate family members.
The Office of Foreign Assets Control this week sanctioned Horacio Manuel Cartes Jara and Hugo Adalberto Velazquez Moreno, the former president and current vice president of Paraguay, respectively, for significant corruption. The agency also sanctioned Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A. and Frigorifico Chajha S.A.E. for being owned by Cartes.
While companies should expect the U.S. to continue to coordinate trade restrictions with Europe this year, the EU, the U.K. and others may look to impose “broader” measures than the U.S. does as those nations try to strengthen their individual sanctions regimes, Willkie Farr said in a client alert this month. The firm also said the sanctions cooperation among many of the world’s democracies in 2022, particularly the trade restrictions imposed on Russia, “highlighted the divergence between governments and increased the demand on compliance teams.”
The Office of Foreign Assets Control this week designated three people for their financial support of Hezbollah, including Hassan Moukalled and his business CTEX Exchange. OFAC sanctioned Moukalled, a Lebanese money exchanger, and CTEX for working closely with Hezbollah financiers to help the group "establish a presence" in Lebanon's financial system. Moukalled serves as a financial adviser to Hezbollah and does business on behalf of the group, representing it in financial negotiations, the agency said. In addition, OFAC designated Moukalled's two sons, Rayyan and Rani, who OFAC said support their father and his business with Hezbollah.