American Sanctions Program

The U.S. Government maintains a range of economic sanctions, administered primarily by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). Most U.S. sanctions are considered “primary sanctions”. To violate U.S. primary sanctions, a transaction must generally involve both (i) a U.S. nexus, and (ii) a sanctioned person (entities or individuals) or a sanctioned jurisdiction. A transaction can have a U.S. nexus if it involves a U.S. person or U.S.-origin products, software, or technology, or if it causes or involves activity within U.S. territory. Importantly, non-U.S. companies and individuals can engage in U.S.-nexus transactions and thereby violate U.S. sanctions. Primary Sanctions encompass several types of sanctions: 1-List-based blocking sanctions generally prohibit U.S.-nexus transactions with designated persons (individuals, entities, vessels, aircraft, etc.), which OFAC has placed on its Specially Designated Nationals (“SDN”) List. OFAC maintains a number of sanctions programs, including country-specific programs and programs targeting international narcotics trafficking, proliferation, malicious cyber activity, human rights abuses.