BELARUS NEWS AND ANALYSIS
DATE:
24/03/2008
The Belarus connection
Is OFAC Guidance on Belarus entity a pointed warning?
Last week's OFAC "Guidance on Property of Certain Persons Undermining the Democratic Processes or Institutions in Belarus" warned US persons not to deal with Belarusian companies majority-owned or controlled by a designated sanctioned entity, even though the owned or controlled companies are themselves not sanctioned by OFAC. The sanctioned entity is the Belarusian State Concern for Oil and Chemistry, a/k/a Belneftekhim. This is a clear warning that one might inadvertently violate OFAC rules, or a US Presidential Executive Order. Is this a pointed warning to steer clear of Belarus businesses?
At the very least, practise enhanced due diligence on any new Belarusian companies your clients are intending upon doing petro-business with, lest you run afoul of OFAC or the Executive Order. You might even want to raise your risk level for Belarus, and institute enhanced due diligence across the board on all entities organised in that nation
- Kenneth Rijock, Financial Crime Consultant for World-Check/ Editorial From Different angle / 09 March 2008
Source:
http://www.petroleumworld.com/issues08032402.htm
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