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.
