THE JOURNAL OF EXPORT CONTROLS AND SANCTIONS

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OFAC permits US persons to make certain payments to Venezuela government

November, 2019

Licence will enable payment of taxes and other fees to the Venezuelan government, but comes with certain obligations.

OFAC permits US persons to make certain payments to Venezuela government

The US Office of Foreign Assets Control (‘OFAC’) has issued a licence (General License No. 35) under which US persons are ‘authorised to pay taxes, fees and import duties to, and purchase or receive permits, licenses, registrations, certifications and public utility services from the Government of Venezuela, to the extent such transactions and activities are prohibited by Executive Order 13884, where such transactions are necessary and ordinarily incident to such persons’ day to day operations.’

The licence holds that US persons that make such reports are obliged to report to OFAC ‘the names and addresses of the entity or entities remitting payment and the Government of Venezuela entity or entities receiving payment; the amount of funds paid to the Government of Venezuela; the type and scope of activities conducted, such as the relevant type of taxes, fees, or duties paid; and the dates of payment.’

US financial institutions are not obliged to submit reports on payments made on behalf of customers who are authorised under the licence.

 

See: https://www.treasury.gov/resource-center/sanctions/Programs/Documents/venezuela_gl35.pdf

 

 

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