Central African Republic Sanctions: Know Your OFAC Compliance Obligations

Overview

The United States has imposed sanctions on the Central African Republic (CAR) to address the ongoing conflict and humanitarian crisis in the country. To comply with these sanctions, companies and individuals must navigate a complex web of regulations and laws.

OFAC FAQs: Your Guide to Sanctions Programs

• The Office of Foreign Assets Control (OFAC) has compiled hundreds of frequently asked questions (FAQs) about its sanctions programs, including those related to the CAR.
• The FAQs provide detailed guidance on a range of topics, from general licensing policies to specific issues related to blocking property and interests in property.

Interpretive Guidance: Clarifying OFAC Policy

• OFAC regularly issues interpretive guidance on specific issues related to its sanctions programs.
• This guidance is designed to clarify OFAC policy and provide companies with a better understanding of their obligations under the CAR sanctions.
• One example of interpretive guidance is “Guidance on the Provision of Certain Services Relating to the Requirements of U.S. Sanctions Laws,” which was published in January 2017.

Applying for an OFAC License

• In some cases, companies may be able to apply for a license from OFAC to engage in a transaction that would otherwise be prohibited by the CAR sanctions.
• The application process is outlined on the OFAC website, which also provides guidance on licensing policies and procedures.

Licensing Policies: A Guide to OFAC Licenses

• OFAC has issued guidance on specific licensing policies related to the CAR sanctions.
• For example, “Licenses for Legal Fees and Costs” outlines the procedures for releasing limited amounts of blocked funds for payment of legal fees and costs incurred in challenging the blocking of U.S. persons in administrative or civil proceedings.

Legal Framework: Understanding the Central African Republic Sanctions Program

• The CAR sanctions program is based on multiple legal authorities, including executive orders issued by the President and public laws passed by Congress.
• These authorities are further codified in OFAC regulations published in the Code of Federal Regulations (CFR).
• Modifications to these regulations are posted in the Federal Register.

Conclusion

For companies operating in the CAR or with ties to the region, it is essential to understand the legal framework governing OFAC compliance. Failure to comply with sanctions can result in severe penalties, including fines and criminal prosecution.

By staying informed about OFAC compliance requirements and guidelines, companies can minimize their risk of non-compliance and ensure that they are operating in a responsible and ethical manner.