On the 24th of September 2019 the U.S Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated four companies in accordance with Executive Order 13850 of November 1, 2018. The four companies operate in the oil sector of the Venezuelan economy. One of those companies was Caroil Transport Marine Ltd. The company incorporated under the laws of Cyprus and operates three vessels: Carlota C, Sandino, and Petion.
The vessels delivered petroleum products to Cuba on different occasions and because of the transport of petroleum products to Cuba, the vessels and the company have been named in the Specially Designated Nationals And Blocked Persons List (SDN).
As a result of yesterday’s action, all property and interests in property of these companies, and of any companies that are owned, directly or indirectly, 50 percent or more by the designated companies, that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC.
OFAC Sanctions in Cyprus
In a previous publication, I considered the creation of US Jurisdiction in Cyprus for the purposes of complying with OFAC Sanctions. One of the most common ways to establish US Jurisdiction in Cyprus is when transactions involve US Dollars. Once a company performs transactions in US Dollars then US jurisdiction is established.
Without too much information on the particulars, it seems that the Cypriot company in question, Caroil Transport Marine Ltd, is named in the Specially Designated Nationals And Blocked Persons List (SDN) due to the fact that its assets (the ships above mentioned) delivered petroleum products to Cuba.
Sec. 4. The prohibitions in section 1 of this order include:
(a) the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and
(b) the receipt of any contribution or provision of funds, goods, or services from any such person.Section 4 of Executive Order 13850 of November 1, 2018
Risk + Mitigation =
Cyprus AML Law Translated to English in an announcement by CYSEC today the Cyprus AML Law has been translated to English up to law 81(I)/2019. The prevention and suppression of money laundering and terrorist financing laws of 2007 – 2019 is the backbone of the Cypriot efforts on terror