Several federal agencies are seeking comments to determine whether an interagency risk management guidance supports banks’ compliance with sanctions and anti-money laundering requirements, a joint notice said April 12. The Supervisory Guidance on Model Risk Management, developed by the Federal Reserve board of governors and the Office of the Comptroller of the Currency, describes the elements of effective bank risk management programs and is meant to help banks better comply with U.S. sanctions requirements, among other regulations. The agencies are asking for feedback on how well the guidance helps banks comply with Office of Foreign Assets Control sanctions. “The agencies seek this information to enhance their understanding of bank practices in these areas and determine whether additional explanation or clarification may increase transparency, effectiveness, or efficiency,” said the notice, which was issued by the OCC, the Federal Reserve board of governors, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Financial Crimes Enforcement Network. Comments are due June 11.
Several countries aligned with the European Union's extension on two sets of sanctions on Ukrainian individuals and entities for undermining the Eastern European nation's sovereignty. The EU found Montenegro, Albania, Norway, Ukraine and Moldova aligned with its move to extend certain sanctions until March 6, 2022. Montenegro, Albania and Norway aligned with the action to extend until Sept. 15, 2021, the measures on 14 individuals and 13 Ukrainian entities.
The European Council extended until April 13, 2022, its sanctions on Iran for the nation's serious human rights violations, a press release said. The EC also added eight individuals and three entities to the sanctions list for their roles in the violent response to November 2019 protests in Iran, bringing the totals to 89 individuals and four entities. The sanctions consist of a travel ban and an asset freeze along with a ban on exports to Iran of equipment that can be used for human rights violations and equipment for monitoring telecommunications.
The Office of Foreign Assets Control on April 12 issued revised guidance for submitting certain license applications and for the agency’s Sudan sanctions program. In frequently asked questions 97 and 98, OFAC provided guidance for how exporters can submit license applications under the Trade Sanctions Reform and Export Enhancement Act of 2000 and what information should be included in those applications. In FAQ 500, OFAC clarified that exporters of humanitarian goods, including agricultural commodities and medicine, don’t need an OFAC license to ship to Sudan. In FAQ 836, the agency detailed which Sudanese sanctions were lifted as a result of the December 2020 U.S. decision to rescind Sudan’s designation as a state sponsor of terrorism (see 2012170015 and 2101140018). OFAC stressed that the revocation of the sanctions doesn’t affect agency enforcement investigations into violations that took place before the sanctions were revoked.
The Office of Foreign Assets Control designated the Abid Ali Khan Transnational Criminal Organization for the “unlawful smuggling of foreign nationals,” the agency said. OFAC also sanctioned Pakistani national Abid Ali Khan, the group's leader, and three of his associates: Redi Hussein Khal Gul, Shakeel Karim and Mohammed Choudry Ikram Waraich. The agency announced the sanctions April 7 (see 2104070033).
The Office of Foreign Assets Control amended the base civil penalty amount for certain sanctions violations to reflect inflation adjustments for its civil monetary penalties, it said in a notice. The change, effective April 12, revises the definition for OFAC’s “applicable schedule amount,” which establishes a base penalty for non-egregious sanctions violations cases that do not involve a voluntary self-disclosure. For transactions valued at $200,000 or more, the applicable schedule amount will be $311,562, which is the maximum civil monetary penalty amount for a violation of the International Emergency Economic Powers Act, OFAC said. The agency said these changes were not required but done so that its base penalties “correspond appropriately” to OFAC’s civil monetary penalties, which are adjusted annually for inflation. OFAC last revised the applicable schedule amount definition in August 2020 (see 2008100012).
The Office of Foreign Assets Control sanctioned Myanma Gems Enterprise, a state-owned entity responsible for “all gemstone activities” in Myanmar, OFAC said April 8. The agency said gemstones are a “key economic resource” for the Myanmar military regime “that is violently repressing pro-democracy protests in the country.”
The Office of Foreign Assets Control on April 7 added four people and two entities to its Specially Designated Nationals List. The designated entries have addresses in Pakistan and the United Arab Emirates, including the Abid Ali Khan Transnational Criminal Organization. OFAC didn’t provide more information on the designations, and an agency spokesperson didn’t comment.
The United Nations Security Council removed a diamond trading company based in the Central African Republic from its sanctions list, it said April 5. The move deletes the entry for Bureau D’achat de Diamant en Centrafrique/Kardiam.
The State Department designated Ulises Rolando Quintana Maldonado, a representative in the Paraguayan legislature, for corruption, the agency said April 6. The State Department also designated his wife, Mirtha Beatriz Esperanza Fariña Velausteguiz.