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OFAC Authorizes Noncommercial, Personal Remittances To Afghanistan – International Law

OFAC Authorizes Noncommercial, Personal Remittances To Afghanistan – International Law

OFAC Authorizes Noncommercial, Personal Remittances To Afghanistan – International Law


United States:

OFAC Authorizes Noncommercial, Personal Remittances To Afghanistan


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OFAC authorized certain transactions necessary for
the transfer of noncommercial, personal remittances to
Afghanistan.

In General License (“GL”) No. 16, OFAC authorized
transactions otherwise prohibited by the Global Terrorism Sanctions
Regulations, the Foreign Terrorist Organizations Sanctions
Regulations, and Executive Order 13224 (“Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten To Commit, or
Support Terrorism”) that involve the Taliban or the Haqqani
Network, or any entity that has 50 percent or more interest in
either or both of them in aggregate, if the transactions are
“ordinarily incident and necessary to the transfer of
noncommercial, personal remittances to Afghanistan, including
through Afghan depository institutions.” OFAC clarified that
it will not consider as noncommercial, personal remittances (i)
charitable donations of funds to or for the benefit of an entity or
(ii) fund transfers for use in supporting or operating a business,
including a family-owned business.

OFAC underscored that the following transactions are also
outside the scope of GL No. 16, and are not authorized:

  • financial transfers to any blocked person, if such transfers do
    not “effect[] the payment of reasonable and customary taxes,
    fees or other duties”;

  • debits to U.S. bank accounts of blocked persons; and

  • any otherwise prohibited transactions or activities otherwise
    prohibited under OFAC’s regulations or Executive Order 13224,
    as amended.

OFAC also issued the following related FAQs:

  • FAQ 931, which clarifies that non-U.S. persons
    do not risk exposure to U.S. sanctions regulations if they engage
    in transactions authorized under GL 14, 15 or 16 for U.S. persons;
    and

  • FAQ 949, which further clarifies the scope of
    GL 16 and its authorization of certain transactions in connection
    with the transfer of personal remittances to Afghanistan.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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