Financial Crime World

US Imposes Sanctions on Sudan, Offers Licenses for Certain Activities

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against Sudan, imposing penalties on individuals and entities deemed to be destabilizing the country or undermining its democratic transition.

Purpose of Sanctions

According to OFAC, these sanctions are authorized under multiple legal authorities, including Executive Orders issued by the President and public laws passed by Congress. The sanctions aim to promote peace and stability in Sudan, particularly in the conflict-ridden Darfur region.

General Licenses Issued

To facilitate certain activities that would otherwise be prohibited by the sanctions, OFAC has issued four general licenses:

  • Sudan General License Number 1: Allows for official business of certain international organizations and entities.
  • Sudan General License Number 2: Authorizes transactions in support of non-governmental organizations’ activities.
  • Sudan General License Number 3: Permits transactions related to the provision of:
    • Agricultural commodities
    • Medicine
    • Medical devices
    • Replacement parts
    • Software updates
    • Extraction, processing, transportation, sale, or distribution of water in Sudan
  • Sudan General License Number 4: Allows for the wind-down of transactions involving Defense Industries System or Al Junaid Multi Activities Co Ltd.

Entities Owned by Blocked Persons

OFAC has also issued guidance on entities owned by persons whose property and interests in property are blocked. This includes entities that are majority-owned, directly or indirectly, by a blocked person.

The sanctions are based on multiple legal authorities, including:

  • Executive Orders 14098, 13804, 13407, and others
  • Public laws such as the Trade Sanctions Reform and Export Enhancement Act of 2000
  • United Nations Security Council Resolutions 1672, 1591, 1070, 1054, and 1044

These authorities provide a framework for imposing sanctions on individuals and entities deemed to be destabilizing Sudan or undermining its democratic transition.

UN Security Council Resolutions

The UN Security Council has also passed several resolutions aimed at promoting peace and stability in Sudan. These resolutions have called upon the Government of Sudan to comply with requests from the Organization of African Unity and other international organizations.

Conclusion

The US sanctions on Sudan are part of a broader effort to promote peace and stability in the region, and to hold accountable those who undermine democratic values and human rights.