OFAC Issues Final Rule on Blocking Property of Certain Cte d'Ivoire Persons

(In E.O. 13396, the President determined that the situation in Cte d'Ivoire constitutes an unusual and extraordinary threat to the national security and foreign policy of the U.S. and declared a national emergency to deal with that threat. Among other things, EO 13396 blocked the property and interests in property of persons contributing to the conflict in Cte d'Ivoire.)

Sanctions Targeted to Persons Contributing to Conflict, Not to Country or Trade in General

According to OFAC, these sanctions are targeted at certain persons who contribute to the conflict in Cte d'Ivoire and are not directed against the country of Cte d'Ivoire or the Government of Cte d'Ivoire. They do not generally prohibit trade or the provision of banking or other financial services to the country of Cte d'Ivoire, unless the transaction or service in question involves a person whose property and interests in property are blocked pursuant to these Cte d'Ivoire Sanctions Regulations.

Final Rule Adds New 31 CFR Part 543

The final rule adds a new 31 CFR Part 543 entitled, "Persons Contributing to the Conflict in Cte d'Ivoire Sanctions Regulations" to conform OFAC's regulations to the purposes of EO 13396.

New 31 CFR Part 543 states, among other things, that except as authorized by regulations, orders, directives, rulings, instructions, licenses, or otherwise, and notwithstanding any contracts entered into or any license or permit granted prior to the effective date, all property and interests in property that are in the U.S., that hereafter come within the U.S., or that are or hereafter come within the possession or control of U.S. persons, including their overseas branches, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:

any person listed in the Annex to Executive Order 13396 of February 7, 2006;

any person determined by the Secretary of the Treasury, after consultation with the Secretary of State: (i) to constitute a threat to the peace and national reconciliation process in Cte d'Ivoire, etc.; (ii) to be responsible for serious violations of international law in Cte d'Ivoire; (iii) to have directly or indirectly supplied, sold, or transferred to Cte d'Ivoire arms or any related material or any assistance, advice, or training related to military activities; (iv) to have publicly incited violence and hatred contributing to the conflict; (v) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of the activities described in (i) to (iv); or (vi) to be owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to the Cte d'Ivoire Sanctions Regulations.

(See final rule for additional details, including that the prohibitions outlined above include the making or receipt by a U.S. person or within the U.S. of any contribution or provision of funds, goods, or services from, by, to, or for such blocked persons, etc.)

(See ITT's Online Archives or 02/17/06 and 02/14/07 news, 06021799 2 and 07021499 2, for BP summaries on EO 13396.

See ITT's Online Archives or 12/16/04 news, 04121640, for BP summary of the State Department suspending licenses and approvals to export defense articles and services to the Ivory Coast.)

OFAC final rule (FR Pub 04/13/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-8338.pdf