OFAC Issues Two New Venezuela FAQs
The Treasury’s Office of Foreign Assets Control issued two new Venezuela-related frequently asked questions concerning filing a lawsuit against sanctioned Venezuelan people or entities and conducting an auction for shares of a sanctioned Venezuelan entity, according to a Dec. 9 notice.
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A specific license from OFAC is not required to file or continue a lawsuit against a sanctioned party subject to OFAC’s Venezuela sanctions program, the agency said in FAQ 808. But a specific license is required to enter into a settlement agreement or to enforce any “lien, judgment, or other order through execution, garnishment, or other judicial process” against a sanctioned party, OFAC said. This includes the “purported creation or perfection of any legal or equitable interests (including contingent or inchoate interests) in blocked property,” according to OFAC. A license is required for legal measures such as taking possession, seizing, levying upon, attaching, encumbering, pledging, conveying, selling, freezing, assuming or maintaining custody and sequestering.
In FAQ 809, OFAC said parties that have attached shares of a sanctioned entity must obtain a specific license before conducting an auction or other sale or taking “concrete steps” toward an action or a sale. OFAC said it “urges caution” in this space, specifically relating to “measures which might alter or affect blocked property or interests in blocked property.” The agency considers license applications for auctions and other sales on a case-by-case basis.