Debt default will disrupt markets and damage private-sector confidence and growth, the Department of Treasury said in an Oct. 3 report released to the public. The report corroborates some testimony delivered to the Senate Budget Committee on Sept. 24 (see 13092501). The Federal Reserve is expected to default by Oct. 17, should Congress fail to pass legislation raising the debt limit. “In the event that a debt limit impasse were to lead to a default, it could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth -- with many private-sector analysts believing that it would lead to events of the magnitude of late 2008 or worse, and the result then was a recession more severe than any seen since the Great Depression,” the report said. Congressional Democrats dismissed gestures to tie the debt ceiling debate with current efforts to push appropriations legislation required to re-open the federal government (see 13100316).
The following additions have been made to the Office of Foreign Assets Control's Specially Designated Nationals (SDN) list:
The Treasury Department’s Office of Foreign Assets Control (OFAC) assessed a $750,000 penalty on Finans Kiymetli Madenler Turizm Otomotiv Gida Tekstil San. Ve Tic for violating the Iranian Transactions and Sanctions Regulations, according to a Sept. 26 release. In 2012, Finans originated at least three electronic funds transfers, totaling $257,808, that processed through financial institutions located in the U.S. for the benefit of the government of Iran or persons in Iran, OFAC said. The Treasury blocked two of those transactions. Finans is a Turkey-based trading company.
The Treasury Department’s Office of Foreign Assets Control (OFAC) added individuals and made changes to the Specially Designated Nationals (SDN) list on Sept. 24.
The Treasury Department’s Office of Foreign Assets Control (OFAC) added individuals and made changes to the Specially Designated Nationals (SDN) list on Sept. 19.
The Treasury Department’s Office of Foreign Assets Control (OFAC) updated its list of medical supplies that are approved for export or reexport to Iran. The list is due for publication in the Federal Register on Sept. 5, but was effective July 25. The items are defined as basic medical supplies under the Iranian Transactions and Sanctions Regulations. The assorted, approved items fall under the following categories: General Medical Equipment and Supplies, Anaesthesiology, Apparel, Cardiology, Dental equipment and supplies, Gynecology & Urology, Laboratory, Nephrology, Neurology, Obstetrics and Maternity Care, Ophthalmology and Optometry, Physical and Occupational Therapy, Radiology, Sterilization, and Surgery.
The Treasury Department issued a current List of Countries Requiring Cooperation with in an International Boycott, due for publication in the Sept. 3 Federal Register. Its list includes Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. The list is unchanged from Treasury's last quarterly update (see 13052421).
The Treasury Department’s Office of Foreign Assets Control requests comment on the effectiveness of licensing procedures for the export of agricultural commodities, medicine and medical devices to Sudan and Iran. Comments must be received by Oct. 3. Comments may be submitted via www.regulations.gov, fax or mail.
The Treasury Department’s Office of Foreign Assets Control (OFAC) added individuals and made changes to the Specially Designated Nationals (SDN) list on Aug. 22.
The Treasury Department prohibited on Aug. 22 U.S. citizens from conducting financial or commercial transactions with five affiliates of Esparragoza Moreno, considered by the U.S. government to be a leader of Mexico's Sinaloa Cartel. The department’s Office of Foreign Assets Control (OFAC) also froze U.S. assets for Angello de Jesus Solis Aviles, Mario Parra Sanchez, Manuel Arturo Valdez Rodriguez, Juan Carlos Villegas Loera, and Vanessa Valenzuela Valenzuela.