October 14, 2019: New E.O., designations & licenses related to Turkish incursion into Syria

On Monday, OFAC designated the following Turkish individuals:

AKAR, Hulisi, Turkey; DOB 1952; POB Kayseri, Turkey; Gender Male (individual) [SYRIA-EO]. 

 

DONMEZ, Fatih, Turkey; DOB 1965; POB Bilecik, Turkey; Gender Male (individual) [SYRIA-EO]. 

 

SOYLU, Suleyman, Turkey; DOB 21 Nov 1969; POB Istanbul, Turkey; Gender Male (individual) [SYRIA-EO].

and government entities:

REPUBLIC OF TURKEY MINISTRY OF ENERGY AND NATURAL RESOURCES, Ankara, Turkey [SYRIA-EO]. 

 

REPUBLIC OF TURKEY MINISTRY OF NATIONAL DEFENCE, Ankara, Turkey [SYRIA-EO].

under a new “Syria-related” program (Mr. Watchlist checked – there is still a Syria program). I guess they didn’t want to call it the Turkey program?

Anyhow, this all comes under a new Executive Order, which blocks the property of the following:

(i) any person determined by the Secretary of the Treasury, in consultation with the Secretary of State: (A) to be responsible for or complicit in, or to

have directly or indirectly engaged in, or attempted to engage in, any of the following in or in relation to Syria:

(1) actions or policies that further threaten the peace, security, stability, or territorial integrity of Syria; or

(2) the commission of serious human rights abuse;

(B) to be a current or former official of the Government of Turkey;

(C) to be any subdivision, agency, or instrumentality of the Government of Turkey;

(D) to operate in such sectors of the Turkish economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State;

(E) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order; or

(F) to be owned or controlled by, or to have acted or purported to act for or on·behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.

Additionally, the Secretary of State (this time, he consults with Treasury, not the other way around), can impose a range of sanctions on the following foreign persons:

(i) is responsible for or complicit in, has directly or indirectly engaged in, or attempted to engage in, or financed, any of the following:

(A) the obstruction, disruption, or prevention of a ceasefire in northern Syria;

(B) the intimidation or prevention of displaced persons from voluntarily returning to their places of residence in Syria;

(C) the forcible repatriation of persons or refugees to Syria; or

(D) the obstruction, disruption, or prevention of efforts to promote a political solution to the conflict in Syria, including:

(1) the convening and conduct of a credible and inclusive Syrian-led constitutional

process under the auspices of the United Nations (UN);

(2) the preparation for and conduct of UN-supervised elections, pursuant to the new constitution, that are free and fair and to the highest international standards of transparency and accountability; or

(3) the development of a new Syrian government that is representative and

reflects the will of the Syrian people;

(ii) is an adult family member of a person designated under subsection (a) (i) of this section; or

(iii) is responsible for or complicit in, or has directly or indirectly engaged in, or attempted to engage in, the expropriation of property, including real property, for personal gain or political purposes in Syria.

The sanctions being:

(b) When the Secretary of State, in accordance with the terms of subsection (a) of this section, has determined that a person meets any of the criteria described in that subsection and has selected one or more of the sanctions set forth below to impose on that person, the heads of relevant departments and agencies, in consultation with the Secretary of State, as appropriate, shall ensure that the following actions are taken where necessary to implement the sanctions selected by the Secretary of State:

(i) agencies shall not procure, or enter into a contract for the procurement of, any goods or services from the sanctioned person; or

(ii) the Secretary of State shall direct the denial of a visa to, and the Secretary of Homeland Security shall exclude from the United States, any alien that the Secretary of State determines is a corporate officer or principal of, or a shareholder with a controlling interest in, a sanctioned person.

(c) When the Secretary of State, in accordance with the terms of subsection (a) of this section, has determined that a person meets any of the criteria described in that subsection and has selected one or more of the sanctions ~et forth below to impose on that person, the Secretary of the Treasury, in consultation with the Secretary of State, shall take the following actions where necessary to implement the sanctions selected by the Secretary of State:

(i) prohibit any United States financial institution that is a U.S. person from making loans or providing credits to the sanctioned person totaling more than $10,000,000 in any 12-month period, unless such person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities;

(ii) prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the sanctioned person has any interest;

(iii) prohibit any transfers of credit or payments between banking institutions or by, through, or to any banking institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the sanctioned person;

(iv) block all property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the sanctioned person, and provide that such property and interests in property may not be transferred, paid, exported, withdrawn, or otherwise dealt in;

(v) prohibit any United States person from investing in or purchasing significant amounts of equity or debt instiuments of the sanctioned person;

(vi) restrict or prohibit imports of goods, technology, or services, directly or indirectly, into the United States from the sanctioned person; or

(vii) impose on the principal executive officer or officers, or persons performing similar functions and with similar authorities, of the sanctioned person the sanctions described in subsections (c) (i) – (c) (vi) of this section, as selected by the Secretary of State.

Three General Licenses were issued. Number 1 authorizes the official business of the U.S. Government, Number 2 allows wind-down operations with the two designated government agencies (but only until November 13th), and Number 3 authorizes official activities of the following groups: that deal with the two governmental agencies:

• World Bank

• IMF (International Monetary Fund)

• FAO (UN Food and Agriculture Organization)

• OCHA (UN Office for the Coordination of Humanitarian Affairs)

• OHCHR (UN Office of the United Nations High Commissioner for Human Rights)

• UN Habitat

• UNDP (UN Development Program)

• UNFPA (UN Population Fund)

• UNHCR (Office of the UN High Commissioner for Refugees)

• UNICEF (UN Children’s Fund)

• WFP (World Food Program)

• The World Health Organization (WHO), including the Pan-American Health

Organization (PAHO)

Meanwhile, Treasury:

PRESS RELEASES

Treasury Designates Turkish Ministries and Senior Officials in Response to Military Action in Syria 

Two Ministries and Three Ministers Designated with

New Executive Order

Washington – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action against two ministries and three senior Turkish Government officials in response to Turkey’s military operations in Syria.  The Turkish Government’s actions are endangering innocent civilians, and destabilizing the region, including undermining the campaign to defeat ISIS.  The Government of Turkey’s Ministry of National Defence and the Ministry of Energy and Natural Resources, as well as the Minister of National Defence, Minister of Energy and Natural Resources, and the Minister of the Interior are blocked as a result of today’s action.  The designation of these ministries and officials is a result of the Turkish Government’s actions that further deteriorate peace, security, and stability of the region.  We are prepared to impose additional sanctions on Government of Turkey officials and entities, as necessary.

“The United States is holding the Turkish Government accountable for escalating violence by Turkish forces, endangering innocent civilians, and destabilizing the region,” said Treasury Secretary Steven Mnuchin.

In addition, persons that engage in certain transactions with persons designated today may themselves be exposed to designation.  Furthermore, any foreign financial institution that knowingly facilitates any significant financial transactions for or on behalf of the persons designated today could be subject to U.S. correspondent or payable through account sanctions.

Today’s actions are not intended to affect or disrupt the operation of international humanitarian NGOs or the United Nations in Turkey in rendering humanitarian assistance to Syrian communities in need. 

OFAC is prepared to issue authorizations, such as general or specific licenses, as appropriate, to ensure that today’s action does not disrupt Turkey’s ability to meet its energy needs.

Additionally, OFAC issued three General Licenses simultaneously with today’s Executive Order.  General License 1 authorizes the conduct of the official business of the United States Government by employees, grantees, or contractors otherwise prohibited by the order.  General License 2 authorizes a 30 day wind down period for all transactions and activities that are ordinarily incident and necessary to the wind down operations, contracts, or other agreements involving the Ministries of National Defence or Energy and Natural Resources of the Government of Turkey.  General License 3 authorizes official activities of the United Nations involving the Ministry of National Defence or the Ministry of Energy and Natural Resources of the Government of Turkey.

Designation Bases and Authorities

 

Republic of Turkey Ministry of National Defence is being designated pursuant to E.O. of October 14, 2019, for being a subdivision, agency, or instrumentality of the Government of Turkey.

Republic of Turkey Ministry of Energy and Natural Resources is being designated pursuant to E.O. of October 14, 2019, for being a subdivision, agency, or instrumentality of the Government of Turkey.

Hulusi Akar, the Minister of National Defence of the Republic of Turkey, is being designated pursuant to E.O. of October 14, 2019, for being a current or former official of the Government of Turkey.     

Suleyman Soylu, the Minister of Interior of the Republic of Turkey, is being designated pursuant to E.O. of October 14, 2019, for being a current or former official of the Government of Turkey. 

 

Fatih Donmez, the Minister of Energy of the Republic of Turkey, is being designated pursuant to E.O. of October 14, 2019, for being a current or former official of the Government of Turkey.

  

As a result of today’s action, all property and interests in property of these persons, and of any other persons blocked by operation of law, that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.  E.O. October 14, 2019, and OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interest in property of blocked persons.

 

and State:

On Friday, the United States signaled its intent to take action in response to Turkey’s ongoing unilateral military offensive in northeast Syria. President Donald J. Trump has now signed an Executive Order to press Turkey to halt its military offensive against northeast Syria and adopt an immediate ceasefire. The Executive Order gives the Department of Treasury and the Department of State, the authority to consider and impose sanctions on individuals, entities, or associates of the Government of Turkey involved in actions that endanger civilians or lead to the further deterioration of peace, security, and stability in northeast Syria. Three senior Turkish officials, the Ministry of Energy, and the Ministry of Defense have been designated for sanctions under these authorities, concurrent with the signing of the Executive Order.

As the President has made clear, Turkey’s actions in northeast Syria severely undermine the D-ISIS campaign, endanger civilians, and threaten the security of the entire region. If Turkey’s operation continues, it will exacerbate a growing and daunting humanitarian crisis, with potentially disastrous consequences. To avoid suffering further sanctions imposed under this new Executive Order Turkey must immediately cease its unilateral offensive in northeast Syria and return to a dialogue with the United States on security in northeast Syria.

issued press releases.

Mr. Watchlist will get the various resource pages updated today or tomorrow (today is a day off from the daily grind)….

Links:

OFAC Notice

Executive Order

General Licenses: 1, 2, 3

Press Releases: State, Treasury

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