Financial Crime World

US Treasury’s Office of Foreign Assets Control (OFAC) Implements Sanctions to Stabilize Western Balkans Region

The Office of Foreign Assets Control (OFAC), a division of the US Department of the Treasury, has introduced sanctions aimed at stabilizing the Western Balkans region. The Balkans-Related Sanctions program was established to address the destabilizing situation in the region.

The sanctions program is based on multiple legal authorities, including executive orders issued by the US President and public laws passed by Congress. These authorities are codified in OFAC’s regulations, which are published in the Code of Federal Regulations (CFR).

Program Objectives

The sanctions program is designed to prevent certain persons from engaging in activities that contribute to the destabilizing situation in the Western Balkans. The program also authorizes certain activities related to the region, such as:

  • Legal representation
  • Humanitarian aid

General Licenses

OFAC has issued several general licenses, which authorize all US persons to engage in specific activities without needing to apply for a specific license. These licenses include authorization for:

  • Legal representation in matters pending before the International Criminal Tribunal for the former Yugoslavia
  • Wind-down of transactions involving certain blocked entities
  • Provision of agricultural commodities and medicine

Licensing Policies

In addition to general licenses, OFAC has issued guidance on specific licensing policies related to the sanctions program. This includes guidance on releasing limited amounts of blocked funds for payment of legal fees and costs incurred in challenging the blocking of US persons in administrative or civil proceedings.

Implementation Mechanisms

The Balkans-Related Sanctions program is implemented through a range of mechanisms, including:

  • Executive orders
  • Public laws
  • OFAC regulations
  • United Nations Security Council Resolutions (UNSCRs)

Modifications and Compliance

The sanctions program has undergone several modifications since its establishment, with changes posted in the Federal Register. Individuals and organizations seeking to engage in activities related to the Western Balkans should consult OFAC’s regulations and guidance to ensure compliance with the sanctions program.

Resources

For more information on the Balkans-Related Sanctions program, including general licenses and licensing policies, please visit the Office of Foreign Assets Control website or contact the office directly.