Yesterday, OFAC updated General License 1, which authorized derivatives on securities prohibited under sectoral sanctions:
Authorizing Certain Transactions Related to Derivatives Prohibited by Directives 1, 2, and 3 under Executive Order 13662
(a) All transactions by U.S. persons, wherever located, and transactions within the United States involving derivative products whose value is linked to an underlying asset that constitutes prohibited debt issued by a person subject to Directive 1, 2, or 3 under Executive Order 13662 or prohibited equity issued by a person subject to Directive 1 under Executive Order 13662 are authorized.
(b) This general license does not authorize the holding, purchasing, or selling of underlying assets otherwise prohibited by Directives 1, 2, or 3 under Executive Order 13662 by U.S. persons, wherever they are located, or within the United States.
The difference? License 1A explicitly noted the debt duratiion that was prohibited, rather than just referring to the Directives. This is actually an improvement.
OFAC also updated some existing FAQs, and added one new one:
550. When OFAC references a prohibition involving an “SSI entity” in these FAQs or in other guidance, what does that term mean?
When OFAC uses the term “SSI entity” in these FAQs or in other guidance, it is referring to an entity subject to the Directive(s) at issue in a particular FAQ or piece of guidance. [11-28-2017]