New Ethiopian-related Executive Order and OFAC activity

President Biden has signed Executive Order 14046, “Imposing Sanctions on Certain Persons with Respect to the Humanitarian and Human Rights Crisis in Ethiopia.” The E.O. declares a national emergency with respect to the crisis and provides the Secretary of the Treasury, in consultation with the Secretary of State, with authorities to impose a range of targeted sanctions on persons determined, among other things, to be responsible for or complicit in actions or policies that expand or extend the ongoing crisis or obstruct a ceasefire or peace process in northern Ethiopia or commit serious human rights abuse.

Concurrent with the issuance of the new E.O., Treasury issued three general licenses, which authorize official activities of certain international organizations and other international entities, certain transactions in support of nongovernmental organizations’ (NGOs) activities, and certain transactions related to the exportation or reexportation of agricultural commodities, food, medicine, and medical items. Treasury also issued a series of six FAQs to provide additional clarity and guidance regarding the non-application of OFAC’s 50 Percent Rule to the property and interests in property of persons blocked pursuant to this E.O., as well as additional information on the activities authorized by the new Ethiopia General Licenses.

• White House Fact Sheet on the Ethiopia Executive Order
• Treasury Department press release

The Department of the Treasury also announced that OFAC has designated members of a network of Lebanon- and Kuwait-based financial conduits that fund Hizballah. OFAC also designated members of an international network of financial facilitators and front companies that operate in support of Hizballah and Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).

For links to the Ethiopia-related Executive Order and the related General Licenses and FAQs, and identification information on the designated Hizballah supporters, see BankersOnline's OFAC Update.

UPDATE 9/21/2021: This story has been updated to include the Executive Order number and a link to its publication in the Federal Register.