What is the status of the OFAC Sudan sanctions program?

So, someone saw last week’s changes to the Sudanese Sanctions Regulations (SSR) and asked “so, do we delete all the Sudan program listings out of the SDN List?”…

Mr. Watchlist understands the confusion. The answer is No – until OFAC actually posts the deletions (of course).

To be clear, the Sudan sanctions program has not been terminated. But everything that was prohibited is now authorized, without the prohibition going away, by adding a new General License to the SSR. Huh?

Here’s a non-compliance analogy from the US federal government. A bill can be become law in a simple way – both houses of Congress pass the bill and the President signs the bill. It can also become law the hard way – the law gets passed by Congress, the President vetoes it, and Congress overrides the veto. The Sudan sanctions program is that second case – the veto imposed in the SSR has now been overridden by the new General License in the SSR.

Want an OFAC analogy to this? I’ll give you two…

First, the changes to the Iran sanctions were not due to prohibitions being removed – the Secretary of State issued a waiver permitting the conduct. You may remember that a few weeks ago, when Congress renewed the Iran Sanctions Act, Secretary Kerry renewed the waiver.

Second, Kingpin Act License 1C authorizes wind-down transactions with Banco Continental, SA – which is still on the SDN list.

So, in short, like people say “nothing to see here… move along.”

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