The U.S. Treasury’s Office of Foreign Assets Control (OFAC) published new guidance in October related to the implementation of the Countering America’s Adversaries Through Sanctions Act (CAATSA). As we have previously summarized, the new law is divided into three parts: Title I-Sanctions with Respect to Iran; Title II-Sanctions with Respect to the Russian Federation and Combating Terrorism and Illicit Financing; and Title III-Sanctions with Respect to North Korea.

Although guidance is pending on Title III, OFAC has now published FAQs or updated FAQs on Titles I and II as follows.

Guidance on Title I / Iran Sanctions Developments

On October 13, in accordance with Section 105 of CAATSA, OFAC imposed sanctions on the Iranian Revolutionary Guard Corps (IRGC) applicable under global terrorism Executive Order 13224. On October 31, OFAC amended its Global Terrorism Sanctions Regulations to block the property and interests in property of foreign persons identified by OFAC as officials, agents, or affiliates of the IRGC.

As OFAC FAQs 533 and 534 explain, although the IRGC was previously sanctioned by OFAC under other programs, the new designation does not allow for certain exemptions related to personal communications, humanitarian donations, information or information materials, and travel, which were previously available.

Guidance on Title II / Russia Sanctions Guidance

OFAC and the State Department have also now published substantial guidance related to implementation of the various Russia-related sanctions. The following table summarizes the recent changes, issued at three separate times in the last six weeks (September 29, October 27, and October 31):

Section of CAATSA

Topic

Agency

Guidance / Regulations Issued

Section 223

Modification of sectoral sanctions

OFAC

Amended FAQs Nos. 370, 394-95, 405, 408-10, 415, & 419

Published Modified Directive 1 Published Modified Directive 2 Published Modified Directive 4

Sectoral sanctions related to railways and mining / metals

OFAC

Published New FAQ No. 539

 

Section 225

Secondary sanctions related to special Russian crude oil projects

State

Published New Guidance and FAQ

Section 226

Secondary sanctions on FFIs related to financing transactions with sanctioned persons and related to special crude oil projects

OFAC

Published New FAQs Nos. 541-543

Section 228

Primary sanctions related to foreign sanctions evaders and serious human rights abusers in the Russian Federation

OFAC

Published New FAQs Nos. 544-546

Section 231

Secondary sanctions related to Russian defense or intelligence sector

State

Published New Guidance and FAQs

Published List of Persons Operating in Russian Defense or Intelligence Sectors

Section 232

Secondary sanctions related to Russian energy export pipelines

State

Published New Guidance

Section 233

Secondary sanctions related to unjust privatization of Russian state-owned assets

OFAC

Published New FAQ No. 540

The guidance represents a continuation of OFAC’s recent trend of issuing guidance at the same time as implementing regulatory changes, but taken together with the State Department’s guidance, arguably represents the most substantial guidance ever issued by the two agencies in advance of implementation of newly enacted Congressional legislation.