Criminal Defense Lawyers

OFAC Syria Sanctions Program Explained

Hey there! I know sanctions programs can be super confusing, so I wanted to break down the OFAC Syria sanctions for you in a simple, easy-to-understand way. I’ll explain what the sanctions are, why they were put in place, who they apply to, and how to make sure you stay compliant. Sound good? Awesome, let’s get started!

What are the OFAC Syria sanctions?

The OFAC Syria sanctions are basically a set of trade and economic restrictions that the US government has placed on Syria. They’re implemented by the Office of Foreign Assets Control (OFAC), which is part of the US Department of the Treasury.

The goal is to put pressure on the Syrian government and disrupt its ability to finance violence against the Syrian people after the start of the Syrian Civil War in 2011. The sanctions also aim to block the property and interests of specific individuals and entities linked to the Assad regime, Syrian government, or those accused of helping fund the war against Syrian citizens.

When were the Syria sanctions first implemented?

The Syria sanctions were first put in place in 2011 after the Syrian government’s violent crackdown on protestors calling for political reform during the Arab Spring movement. Here’s a quick timeline:

• April 29, 2011 – Executive Order 13572 blocks property of certain Syrian officials and entities
• May 18, 2011 – Executive Order 13573 blocks property of President Bashar al-Assad and other senior Syrian officials
• August 17, 2011 – Executive Order 13582 blocks property of the Government of Syria and prohibits certain transactions with Syria

Since then, the sanctions have been expanded through additional executive orders, laws passed by Congress, and regulations implemented by OFAC.

Who do the Syria sanctions apply to?

The sanctions apply to:

• U.S. citizens and permanent residents wherever they are located
• People and entities located in the United States (like businesses incorporated in the US)
• U.S. incorporated entities and their foreign branches

So if you or your company fall into one of those categories, you need to make sure you comply with the Syria sanctions program.

What transactions are prohibited by the Syria sanctions?

There are a bunch of prohibited transactions, but some of the main ones include:

• Imports from Syria – this includes goods, technology, or services
• Exports to Syria of goods, technology, or services from the US
• Trade-related transactions with the Government of Syria or certain blocked persons
• Investments in Syria
• Financial transactions and dealings with the Central Bank of Syria or other blocked Syrian financial institutions

There are also restrictions on things like operating aircraft in Syrian airspace, selling oil products to Syria, and new investment in Syria by US persons.

Who is specifically targeted by the Syria sanctions?

The sanctions target:

• The Government of Syria
• Certain Syrian government officials and entities
• Individuals and entities accused of supporting the Assad regime or involved in human rights abuses during the conflict
• Individuals and entities accused of supporting terrorist organizations operating in Syria

Many of these individuals and entities are placed on OFAC’s Specially Designated Nationals (SDN) list. U.S. persons are prohibited from dealing with anyone on the SDN list.

Are there any exemptions or authorizations?

Yes, OFAC has issued some general licenses that authorize certain activities that would otherwise be prohibited under the Syria sanctions:

• Export of certain services and software related to Internet-based communications
• Certain NGO activities related to democracy building, education, food security, health, and environmental protection
• Exports of agricultural commodities, medicine, and medical devices to Syria

OFAC can also issue specific licenses on a case-by-case basis to allow transactions that support US foreign policy goals or provide humanitarian assistance to the Syrian people.

How can I make sure I comply with the Syria sanctions?

Here are some best practices:

• Screen all customers, suppliers, and business partners against the OFAC SDN list
• Check for Syrian ownership or control of entities you deal with (50% or more Syrian ownership triggers sanctions)
• Review transactions to ensure no dealings with Syria, the Government of Syria, or SDNs
• Verify country of origin/destination on all imports/exports
• If in doubt, request an OFAC license or advisory opinion

Violating OFAC sanctions can lead to huge fines and criminal penalties, so it’s crucial to have a compliance program in place. Monitoring sanctions lists, training staff, and performing due diligence on transactions can help reduce risk.

What’s the latest news on the Syria sanctions?

The US, EU, UK and other allies continue to impose sanctions on Syria and expand restricted parties lists. Some of the most recent developments include:

• November 2021 – OFAC issued General License 22 authorizing certain COVID-19 related transactions[1]
• February 2022 – US designated 3 individuals and 1 entity accused of supporting the Assad regime and its allies[2]
• March 2022 – EU imposed sanctions on additional business figures accused of supporting the Syrian government[3]

Sanctions continue to ratchet up pressure on the Assad government and its backers. We can expect ongoing sanctions enforcement and new designations as the conflict continues. The EU extended sanctions on Syria through June 2023, citing the regime’s violence against civilians[4].

The sanctions have definitely damaged Syria’s economy and government revenues. However some criticize their humanitarian impacts, as they also restrict food, medical supplies and reconstruction efforts[5].

Companies need to keep monitoring for new sanctions and updates. Screening transactions and partners against lists is key to remaining compliant. Reaching out to OFAC is an option if licenses become necessary for Syria-linked activities.

The bottom line is that comprehensive sanctions remain firmly in place against Syria and don’t show signs of easing up anytime soon. Staying up to date on requirements is crucial for anyone doing international business that might touch Syria.