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OFAC designates CEIEC under Venezuela program, issues General License, FAQ

OFAC added the following entity:

CEIEC (Chinese Simplified: 中国电子进出口总公司) (a.k.a. CHINA NATIONAL ELECTRONIC IMPORT-EXPORT COMPANY; a.k.a. CHINA NATIONAL ELECTRONICS IMPORT AND EXPORT CORPORATION), Block A 6-23F, No. 17 Fuxing Road, Haidian District, Beijing 100036, China; Calle Orinoco, Torre Nordic, Piso 6, Las Mercedes, Caracas 1060, Venezuela; Website https://www.ceiec.com; Registration Number 16382287 (China); Unified Social Credit Code (USCC) 9111000010000106X1 (China) [VENEZUELA]. 

to its Venezuela-related sanctions program. It also issued General License 38, which authorizes wind-down transactions with the firm, expiring 12:01 AM on January 14th. Lastly, it issued the following Frequently-Asked Question (FAQ):

854. What does General License 38 authorize?

Answer

On November 30, 2020, OFAC designated CEIEC pursuant to Executive Order (E.O.) 13692 for its role in undermining democracy in Venezuela.  Concurrent with this action, OFAC issued Venezuela General License (GL) 38 (“Authorizing the Wind Down of Transactions Involving CEIEC”).  GL 38 authorizes U.S. persons to engage in all transactions and activities prohibited by E.O. 13692 that are ordinarily incident and necessary to the wind down of transactions and activities involving CEIEC, or any entity in which CEIEC owns, directly or indirectly, a 50 percent or greater interest (collectively, Blocked CEIEC Entities), through 12:01 a.m. eastern standard time, January 14 , 2021.

After the expiration of this authorization, unless exempt or authorized by OFAC, U.S. persons will be prohibited from engaging in transactions with the Blocked CEIEC Entities, and must block property or interests in property of such entities that are in, or come within, the United States, or the possession or control of a U.S. person.

Non-U.S. persons may wind down transactions and activities with the Blocked CEIEC Entities without exposure to sanctions under E.O. 13692, provided that such wind-down activity is: (i) consistent with GL 38; and (ii) completed prior to 12:01 a.m. eastern standard time, January 14, 2021.  Entering into new business involving the Blocked CEIEC Entities will not be considered wind-down activity.  Non-U.S. persons unable to wind down activities with the Blocked CEIEC Entities before 12:01 a.m. eastern standard time, January 14, 2021, may seek guidance from OFAC.

And State issued a press release:

Today, the United States is sanctioning CEIEC for supporting the illegitimate Maduro regime’s efforts to undermine democracy in Venezuela.  These efforts include restricting internet service and conducting digital surveillance against political opponents of the regime.  CEIEC has provided software, training, and technical expertise to the regime’s entities.  It provides cyber support and technical experts to state-run telecommunications provider Venezuelan National Telephone Company (CANTV) which controls 70 percent of internet service in Venezuela and frequently blocks online independent newspapers and speeches by opposition members.

PRC technology companies, including CEIEC, lead the world in developing and exporting tools to monitor, censor, and surveil citizens’ activities on the internet.  CEIEC has been supporting the Maduro regime’s malicious efforts to repress political dissent and undermine democratic processes since 2017.

With this latest action, the United States reaffirms its commitment to promoting accountability for all those complicit in the illegitimate Maduro regime’s efforts to undermine democracy.  Maduro’s desperate attempts to manipulate the democratic processes should leave no doubt that any elections organized by the illegitimate regime, including the December 6 parliamentary elections, will be neither free nor fair.  We stand with Interim President Guaidó and the Venezuelan people who have struggled for years to restore democracy and liberty to Venezuela.

Links:

OFAC Notice

General License 38

New FAQ

State Department Press Release

Categories: Frequently Asked Questions (FAQ) Guidance Licenses OFAC Updates Sanctions Lists Venezuela sanctions

eric9to5

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