Zimbabwe’s Office of Foreign Assets Control Tightens Grip on Economic Sanctions

Zimbabwe’s Office of Foreign Assets Control (OFAC) has launched a comprehensive list service aimed at strengthening its economic sanctions regime. The Sanctions List Service (SLS) provides critical information on individuals and companies linked to targeted countries, enhancing the country’s ability to monitor and enforce economic sanctions.

What is the Sanctions List Service?

The SLS will provide regular updates on:

• Individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries
• Changes in the sanctions landscape

This information will help Zimbabwe identify and track entities subject to sanctions, allowing for more effective enforcement of economic sanctions.

FAQs Released by OFAC

The OFAC has released a set of Frequently Asked Questions (FAQs) aimed at providing guidance on:

• Economic sanctions
• Procedures and practices of the agency
• Application process for licenses to engage in transactions that would otherwise be prohibited

These FAQs address key issues and topics relating to economic sanctions, including:

• Application process for licenses to engage in transactions with entities subject to sanctions
• Release of blocked funds

Applications for Licenses Now Accepted

The OFAC will begin accepting applications from individuals and companies seeking to conduct business with entities subject to sanctions. A license is an authorization from the OFAC to engage in a transaction that would otherwise be prohibited.

Impact on Zimbabwe’s Economic Sanctions Regime

The launch of the SLS is seen as a significant step towards strengthening Zimbabwe’s economic sanctions regime, which has been criticized for being ineffective and inconsistent. The country’s finance minister has hailed the launch as a major achievement, saying it will improve transparency and accountability in the financial sector.

However, critics have expressed concerns that the new list service may be overly broad and could inadvertently punish innocent individuals and companies. They are calling for greater clarity on:

• Criteria used to determine which entities are subject to sanctions
• Appeals process for decisions made by the OFAC

The effectiveness of the SLS in strengthening Zimbabwe’s economic sanctions regime will depend on its ability to balance transparency with fairness and accountability.