OFAC Renews License for Transactions Involving COSCO Subsidiary

The Treasury’s Office of Foreign Assets Control renewed a license authorizing certain transactions with COSCO Shipping Tanker (Dalian) Co. and amended three Iran-related frequently asked questions, OFAC said in a Dec. 19 notice. General License K-1, which replaced General License K, authorizes transactions relating to the maintenance or wind-down of dealings with the COSCO subsidiary until Feb. 4, 2020. The license was previously set to expire Dec. 20.

OFAC also amended FAQs 804, 806 and 807 by updating their language to reflect the change to General License K-1. FAQ 804 specifies that sanctions on COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) do not apply to their parent companies. FAQs 806 explains which licensed activities are considered “maintenance,” and FAQ 807 clarifies that financial institutions can complete transactions using General License K-1 if the U.S. financial institution is the “only U.S. person involved in the transaction” (see 1911270029).