US modifies restrictions on transactions with Venezuela
The United States’ Office of Foreign Assets Control (OFAC) on November 5 issued new regulations regarding the executive order given by President Donald Trump in August that imposed restrictions on US persons engaging in transactions with the government of Venezuela, and which loosens some of those restrictions, authorising operations with health and education sector employees, the payment of their salaries, and of taxes and import duties by US citizens.
The August executive order blocked all property or interest in property of the government of Venezuela within or transiting US jurisdiction, prohibited US persons from engaging in any transactions with the government of Venezuela or entities in which it has, directly or indirectly, a 50 per cent or greater ownership interest; and authorised OFAC to include in its specially designated nationals and blocked persons list any person that is determined, in consultation with the US Secretary of State, to have materially assisted, sponsored, or provided support to the Venezuelan government, or be owned or controlled by, or to have acted or purported to act for, or on behalf of, the Venezuelan government.
The modifications made on November 5 expand the authorisations initially established for certain transactions and activities that would be otherwise prohibited by the exective order issued in August, and now authorises operations with current employees and contractors of the Venezuelan government who provide health or education services in Venezuela, including at hospitals, schools, and universities. It also authorises that individuals covered by this general licence receive salaries, pensions, annuities, or other employment-related payments or benefits.
OFAC also issued General License No. 35, which “authorises certain administrative transactions with the government of Venezuela”, particularly, authorising US persons to pay taxes, fees, and import duties to the government of Venezuela, and to purchase or receive permits, licences, registrations, certifications, and public utility services from the Venezuelan government, so long as these transactions are necessary and ordinarily incident to such persons’ day-to-day operations.
