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Haqqani Network’s Afghanistan Entanglements: A Complex Web of Humanitarian Aid and Sanctions

As the United States and international organizations scramble to provide humanitarian aid to Afghanistan, the Haqqani Network’s involvement in the region has sparked concerns about the potential for sanctions violations. The network, owned 50 percent or more by the Taliban, has been designated as a terrorist organization by the US government.

Agricultural Commodities, Medicine, and Medical Devices: What’s Covered

The new general licenses (GL-14 and GL-15) issued by the Office of Foreign Assets Control (OFAC) authorize the exportation or reexportation to Afghanistan of agricultural commodities, medicine, and medical devices. These items include:

Food for humans and animals
Seeds for food crops
Fertilizers
Reproductive materials for food animals
Medicines covered by the term “drug” in the Federal Food, Drug, and Cosmetic Act
Medical devices covered by the term “device” in the same act

Due Diligence: A Must for All Activities

While the general licenses provide a framework for humanitarian aid to Afghanistan, due diligence is crucial to ensure compliance with US sanctions. The Haqqani Network’s involvement in the region means that identifying links to sanctioned parties is essential. OFAC has confirmed that US sanctions do not generally prohibit exports or reexports of goods or services to Afghanistan, provided that the activity does not involve sanctioned individuals or entities.

Financial Transactions: A Delicate Dance

The authorizations in GL-14 and GL-15 exclude financial transfers to the Taliban or Haqqani Network, or associated sanctioned entities, unless for the purpose of:

Effecting the payment of taxes, fees, or import duties
Purchasing or receiving permits, licenses, or public utility services

This limitation is crucial, as any other types of financial transfers may require a specific license from OFAC.

Sanctions Lists: A Screening Must

It is prudent to screen the names of individual counterparties, particularly those in more senior positions, against relevant US sanctions lists. GL-14 and GL-15 do not authorize dealings with individuals who are specifically designated as:

Specially Designated Global Terrorists (SDGTs)
Officials in the Government of Afghanistan

Conclusion

The new general licenses provide a framework for humanitarian aid to Afghanistan, but due diligence is essential to ensure compliance with US sanctions. The Haqqani Network’s involvement in the region means that identifying links to sanctioned parties and screening financial transactions are critical steps prior to commencing or continuing engagement with Afghanistan.

For more information on how these developments may impact your organization, contact a member of Steptoe’s Economic Sanctions team.

OFAC’s General Licenses 14 and 15
US Department of the Treasury’s Office of Foreign Assets Control (OFAC)
Specially Designated Global Terrorists (SDGTs)
Specially Designated Nationals (SDNs)