Financial Crime World

ERITREAN HUMANITARIAN EFFORTS SPARED AS US SANCTIONS APPLY EXCEPTIONS

The Office of Foreign Assets Control (OFAC) has implemented a series of authorizations and exemptions under Executive Order 14046 to ensure that humanitarian assistance continues to flow to the people of Eritrea, Ethiopia, and the greater Horn of Africa region despite the blocking of Hidri Trust and Red Sea Trading Corporation.

Authorizations and Exemptions

Three general licenses and an exemption have been issued by OFAC to facilitate humanitarian-related transactions or activities in Eritrea and Ethiopia. These measures apply to all persons sanctioned under Executive Order 14046, including Hidri Trust and Red Sea Trading Corporation, allowing U.S. and non-U.S. persons to engage in humanitarian efforts without risk of sanctions.

General Licenses

  • General License 1: Authorizes non-governmental organizations (NGOs) to continue their humanitarian work.
  • General License 2: Permits NGOs to engage in humanitarian-related activities.
  • General License 3: Allows U.S. persons to export or reexport covered agricultural commodities, medicine, medical devices, replacement parts, and software updates to Eritrea, Ethiopia, or third countries purchasing for resale.

Exemptions

  • The exemption applies to the official business of the U.S. government, enabling continued support for development activity, life-saving humanitarian assistance, and longer-term assistance to at-risk populations in the region.
  • Non-U.S. persons, including NGOs and financial institutions, would not risk exposure to sanctions for engaging in certain humanitarian-related transactions or activities with Hidri Trust and Red Sea Trading Corporation that are otherwise exempt or authorized for U.S. persons.

Wind Down of Transactions

General License 4 has been issued to authorize the wind down of transactions involving Hidri Trust or Red Sea Trading Corporation until December 14, 2021. Transactions authorized by previous general licenses will continue to be permitted even after the expiration of General License 4.

Objectives

These measures aim to minimize disruptions to humanitarian efforts in Eritrea and Ethiopia while ensuring that U.S. sanctions are enforced against entities involved in destabilizing activities.