International Law Advisory - OFAC Updates SDN List to Include Zimbabwe Designations

Last week, the US Treasury Department, Office of Foreign Assets Control (“OFAC”) made additions to the Specially Designated Nationals and Blocked Persons List (the “SDN List”).  All of the additions to the SDN List have been identified as Zimbabwe designations (“ZIMB”).

The United States and Europe already had a number of sanctions in place against the Zimbabwean government.  According to the US Department of State, the newly imposed sanctions were a direct response to the deteriorating political situation in Zimbabwe.   Zimbabwe designations are made pursuant to the Executive Order issued by President Bush on March 7, 2003, entitled “Blocking Property and Persons Undermining Democratic Processes or Institutions in Zimbabwe.”  This Order blocks all property and interests in property of foreign persons who come within possession or control of the United States persons, including their overseas branches.  In addition, any transaction or dealing by a US person or within the US in property or interests in property blocked pursuant to this Order is prohibited, including but not limited to the making or receiving of any contribution of funds, goods, or services to or for the benefit of any person listed in this Order.

Criminal fines for violating the aforementioned Executive Order may range up to the greater of $500,000 or twice the pecuniary gain per violation for an organization, or up to the greater of $250,000 or twice the pecuniary gain per violation for an individual.  Individuals may also be imprisoned for up to 10 years for a criminal violation.  In addition, civil penalties of up to $11,000 per violation may be imposed administratively.

The specific entities added to the SDN list on March 2 are set forth below.  Companies should update their OFAC compliance screening mechanisms to ensure that any existing business relationships or transactions, and any relationships or transactions in the future, are in compliance with the revised SDN List.

• LITTLE CONNEMARA 1 FARM, Nyanga, Zimbabwe [ZIMB]
• LOT 3A OF DETE VALLEY FARM, Lupane, Zimbabwe [ZIMB]
• M & S SYNDICATE (PVT) LTD., First Floor, Victory House, 88 Robert Mugabe Road, Harare, Zimbabwe; P.O. Box 1275, Harare, Zimbabwe [ZIMB]
• PATTERSON FARM, Mazowe, Zimbabwe [ZIMB]
• SWIFT INVESTMENTS (PVT) LTD., 730 Cowie Road, Tynwald, Harare, Zimbabwe; P.O. Box 3928, Harare, Zimbabwe [ZIMB]
• ZIMBABWE DEFENCE INDUSTRIES (PVT) LTD., 10th Floor, Trustee House, 55 Samora Machel Avenue, Harare, Zimbabwe; P.O. Box 6597, Harare, Zimbabwe [ZIMB]
• ZVINAVASHE INVESTMENTS LTD. (a.k.a. LAMFONTINE FARM; a.k.a. ZVINAVASHE TRANSPORT), 730 Cowie Road, Tynwald, Harare, Zimbabwe; P.O. Box 3928, Harare, Zimbabwe [ZIMB] 

We will continue to keep you apprised of sanctions and export control developments.  If you have any questions, please contact Edward Krauland at 202.429.8083.