The Office of Foreign Assets Control designated two officials in Bosnia and Herzegovina: Marinko Cavara, president of the Federation of Bosnia and Herzegovina, and Alen Seranic, minister of health and social welfare for the Republika Srpska. The two have threatened the stability of the region by undermining the Dayton Peace Accords and democratic processes or institutions, OFAC said in a June 6 news release.
OFAC sanction activity
The U.S. on June 2 issued another round of Russia sanctions, targeting additional Russian oligarchs and elites close to Russia President Vladimir Putin. The sanctions also targeted Russian government officials and business leaders, the luxury property of elites, and luxury asset management and service companies key to Russian attempts to evade sanctions.
The Office of Foreign Assets Control on June 2 sanctioned six people who support the Cartel de Jalisco Nueva Generacion (CJNG), a Mexico-based drug trafficking organization. The designations target Severo Flores Mendoza, a "corrupt municipal police" official; Julio Cesar Montero Pinzon, member of a "violent" CJNG enforcement group; and six family members of a former senior member of CJNG: Esther Godoy Arellano, Angelberto Rincon Godoy, Julio Efrain Rincon Godoy and Moises Gonzalez Anguiano. OFAC previously designated CJNG members of the cartel last year (see 2110060017) and 2202180011). The agency said it worked with the Mexican government, Drug Enforcement Agency and CBP to impose the sanctions.
The Office of Foreign Assets Control published three new FAQs related to the Chinese Military-Industrial Complex Sanctions, according to a June 1 notice. The FAQs address how U.S. financial institutions must deal with transactions involving Chinese Military-Industrial Complex Companies' (CMIC) securities, how holders of CMIC are affected by dividends, and whether they are required to divest interests.
The Office of Foreign Assets Control fined Puerto Rican bank Banco Popular de Puerto Rico (BPPR) about $255,000 for violating U.S. sanctions against Venezuela. BPPR processed 337 transactions on behalf of two government employees of Venezuela, totaling $853,126, OFAC said May 27.
Two companies said they didn’t face any penalties from the Office of Foreign Assets Control after disclosing potential sanctions violations, according to their most recent SEC filings. Baker Hughes, an American oil services company, said it received a “cautionary letter” from OFAC after voluntarily disclosing potential sanctions violations last year. The company said it told OFAC in September that some of its non-U.S. affiliates may have received payments subject to certain sanctions and debt restrictions and that had U.S. touch points. Baker Hughes received a warning letter from OFAC in February, the company said. The company said it’s still being investigated by the SEC (see 2103040065). Semrush Holdings, a Boston software company that disclosed potential sanctions violations last year (see 2103190020), said it won’t face any penalties from OFAC. The agency “decided not to pursue any enforcement action against us and the matter has been closed,” Semrush said.
The Office of Foreign Assets Control sanctioned one person, two banks and a trading company for their support of North Korean weapons of mass destruction and ballistic missile programs and North Korea's national airline, which is sanctioned by the U.S. Yong Nam Jong, of Minsk, Belarus, has "directly supported or helped generate revenue for [North Korean] organizations that are linked to the development of ballistic missiles," a May 27 news release said. Air Koryo Trading, Far Eastern Bank and Sputnik Commercial Bank also were sanctioned after having been found to have contributed to procurement and revenue generation for North Korean organizations. Brian Nelson, Treasury Department undersecretary for terrorism and financial intelligence, said the U.S. "will continue to implement and enforce existing sanctions while urging [North Korea] to return to a diplomatic path and abandon its pursuit of weapons of mass destruction and ballistic missiles.”
The Office of Foreign Assets Control updated a list of items defined as medical supplies and licensed for export or reexport to the Crimea region of Ukraine. The changes, effective May 31, include replacing the reference to General License 4 with a reference to the location of the license in the Ukraine-/Russia-Related Sanctions Regulations, OFAC said. The agency also made "several technical corrections to items on the List, but is not making any substantive changes to the List."
The Office of Foreign Assets Control on May 25 extended a Russia-related General License that authorizes the payment of certain taxes and import fees to Russia despite the sanctions imposed on the Russian central bank, national wealth fund and Ministry of Finance. General License 13A, which replaces General License No. 13 (see 2203030001), extends the authorization through 12:01 a.m. EDT on Sept. 30, 2022, and also authorizes certain activities involving permits, licenses, registrations or certifications. The license was scheduled to expire June 24.
The Office of Foreign Assets Control is designating the international oil smuggling and money laundering network led by Islamic Revolutionary Guard Corps-Qods Force officials, according to a May 25 news release. The network has overseen the sale of "hundreds of millions of dollars’ worth of Iranian oil" for both the IRGC-QF and for Hezbollah, the Treasury Department said. IRGC-QF official Behnam Shahriyari and former IRGC-QF official Rostam Ghasemi head the network, backed by "senior levels of the Russian Federation government and state-run economic organs," Treasury said. The network has acted as a "critical element of Iran’s oil revenue generation," and support for proxy militant groups in the region.