Financial Crime World

Here’s the converted article in markdown format:

OFAC Compliance Requirements in Serbia and Montenegro

The Office of Foreign Assets Control (OFAC) has specific compliance requirements for entities operating in Serbia and Montenegro, particularly with regards to sanctions imposed by the United Nations, European Union, and United States.

Current Sanctions Regimes

UN Sanctions

Currently, there are no UN sanctions on Montenegro. However, a provision remains in force prohibiting the satisfaction of certain claims made in relation to contracts affected by the repealed UN Resolution 757 (1992).

EU Sanctions

The European Union does not have a Montenegro sanctions regime. However, a similar provision remains in effect under Council Regulation (EC) No 1733/94 and Council Decision 94/366/CFSP.

UK Sanctions

After Brexit, the UK retained the same provision in the Sanctions (Amendment) (EU Exit) Regulations 2019, Regulation 5.

US Sanctions

The United States introduced its Western Balkans sanctions regime in 2001, consisting of asset freezes via Executive Order 13219 to curb actions of persons engaged in or assisting extremist violence in the territory of the former Socialist Federal Republic of Yugoslavia.

Expanded Sanctions Regime

In 2021, the US expanded its sanctions regime by Executive Order 14033, broadening the geographical scope of the existing sanctions regime to include Albania and augmenting the designation criteria. The Western Balkans Stabilisation Regulations also list several executive orders that are relevant for OFAC compliance.

Compliance Requirements

Entities operating in Serbia and Montenegro must ensure they comply with these sanctions regimes, particularly when engaging in business transactions or providing legal representation. The US General Licenses, such as Western Balkans General License No. 1, provide guidance on permitted activities in matters pending before the International Criminal Tribunal for the former Yugoslavia.

Conclusion

In summary, entities operating in Serbia and Montenegro must be aware of the various sanctions regimes imposed by the UN, EU, UK, and US, and ensure they comply with OFAC requirements to avoid potential penalties or fines. A thorough search of the OFAC Special Designated Nationals (SDN) List for “Montenegro” is also recommended.

Key Takeaways

  • Entities operating in Serbia and Montenegro must comply with multiple sanctions regimes.
  • Compliance is particularly important when engaging in business transactions or providing legal representation.
  • The US General Licenses provide guidance on permitted activities in matters pending before the International Criminal Tribunal for the former Yugoslavia.