International Law Advisory - OFAC Issues Interpretive Guidance on Executive Order 13412

On November 17, 2006, the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”) issued interpretive guidance on Sudan-related Executive Order (“E.O. 13412” or “the Order”), which was issued on October 13, 2006.  The Order was issued in part to take into account the Darfur Peace and Accountability Act, which was also signed by the President on October 13.

This month’s guidance was issued to assist U.S. persons in complying with the provisions of E.O. 13412. The Order maintains the restrictions that were in effect under the original 1997 Executive Order (Executive Order 13067) that first imposed sanctions on Sudan. That is, it maintains the blocking of all property and interests in property of the Government of Sudan that are in the United States or that come within the United States or that come within the possession of control of U.S. persons, and it explicitly prohibits U.S. persons from engaging in transactions related to the petroleum or petrochemical industries in Sudan. However, E.O. 13412 removes the applicability of the prohibitions set forth in section 2 of Executive Order 13067 to activities or transactions with respect to southern Sudan, as long as the Government of Sudan or the petroleum and petrochemical industries are not involved. It also releases blocking on the regional government of southern Sudan.

The guidance elaborates on the specific prohibitions, the exempt areas of Sudan, transshipments, and financial transactions, and is available here.

Should you have you any questions regarding Sudan sanctions, please contact Ed Krauland at (202) 429-8083.