The US Treasury’s Office of Foreign Assets control has updated its Frequently Asked Questions on Ukrainian sanctions.

OFAC has amended its answer to whether US persons are prohibited from dealing in or processing transactions under a letter of credit, whose term of maturity is longer than 30 days and was issued on or after the sanctions effective date, and where the beneficiary or issuing bank is a listed entity, so it now reads: “US persons may not deal in (including act as the advising or confirming bank or as the beneficiary) or process transactions under a letter of credit…”, and an additional paragraph has been added setting out the circumstances in which a US person may deal in a letter of credit.

In its answer to how US persons should account for the 30 and 90-day debt prohibitions in relation to transactions with listed entities, OFAC has added that payments made under these arrangements should use a value date of no later than 30 or 90 days from either the point at which title or ownership is transferred, or the date of each final invoice.

OFAC has also added a new question on whether US financial institutions are authorised to process non-commercial, personal, remittances to or from Crimea (or those ordinarily resident in Crimea) when there is no US individual as the originator or beneficiary.  It answers that US financial institutions do have this authority, and may do so regardless of whether the originator or beneficiary is a US person.

This entry was posted in Ukraine, USA by Maya Lester QC. Bookmark the permalink.

About Maya Lester QC

Maya Lester QC has a wide ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. As the most recent (2016) Chambers & Partners directory put it, she "owns the world of sanctions". She spent 2011-12 in New York at Columbia Law School lecturing and writing on sanctions. She represents and advises hundreds of companies and individuals before the European and English courts and has acted in most of the leading cases, including Kadi, Tay Za, Central Bank of Iran, NITC and IRISL.

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