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FinCEN has reported that the Government has filed a Notice of Appeal in National Small Business United v. Yellen. The appeal was filed with the U.S. Court of Appeals for the Eleventh Circuit.

The Treasury Department has reported that OFAC has imposed sanctions on 16 entities and individuals who compose an expansive business network spanning the Horn of Africa, the United Arab Emirates (UAE), and Cyprus that raises and launders funds for al-Shabaab, a terrorist group affiliated with al-Qa’ida. Individuals within this network include influential businesspeople in the region that lend financial backing to al-Shabaab, a terrorist group responsible for some of the worst terrorist attacks in East Africa’s modern history. These attacks have claimed the lives of thousands of innocent civilians. These individuals and entities were designated pursuant to Executive Order 13224, as amended, which targets terrorist groups and their enablers.

For the names and identification information of the designated parties, see yesterday's BankersOnline OFAC Update.

Yesterday, U.S. Department of Justice, the U.S. Department of Commerce, and the U.S. Department of the Treasury’s Office of Foreign Assets Control, issued a Tri-Seal Compliance Note: “Obligations of foreign-based persons to comply with U.S. sanctions and export control laws.”

The Treasury Department has reported that OFAC has taken additional action to target shipments of Iranian commodities undertaken by the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial facilitator Sa’id al-Jamal. Yesterday’s action targets two Hong Kong- and Marshall Islands-based ship owners and two vessels for their role in shipping commodities on behalf of al-Jamal, and follows a February 27 action targeting a related vessel, the ARTURA.

For identification information on the companies and vessels, see BankersOnline's March 6, 2024, OFAC Update.

The Department of the Treasury has reported that OFAC has designated two individuals and five entities associated with the Intellexa Consortium for their role in developing, operating, and distributing commercial spyware technology used to target Americans, including U.S. government officials, journalists, and policy experts.

For the names and identification information of the designated parties, see this BankersOnline OFAC Update.

FinCEN reported yesterday that on Friday, in the case of National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.), a federal district court in the Northern District of Alabama, Northeastern Division, entered a final declaratory judgment, concluding that the Corporate Transparency Act exceeds the Constitution’s limits on Congress’s power and enjoining the Department of the Treasury and FinCEN from enforcing the Corporate Transparency Act against the plaintiffs.

FinCEN will comply with the court’s order for as long as it remains in effect. As a result, the government is not currently enforcing the Corporate Transparency Act against the plaintiffs in that action: Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024). Those individuals and entities are not required to report beneficial ownership information to FinCEN at this time.

Update: On March 11, 2024, the Defendants (Yellen, et al) filed a Notice of Appeal of the Court's Final Judgment to the U.S. Court of Appeals for the Eleventh Circuit.

Yesterday, the Department of the Treasury announced that OFAC has designated 11 individuals, including Zimbabwe’s President Emmerson Mnangagwa, and three entities for their involvement in corruption or serious human rights abuse pursuant to E.O. 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

Concurrently, President Biden signed an Executive Order terminating the national emergency with respect to Zimbabwe and revoking the Executive Orders that have authorized Zimbabwe-specific sanctions. As a result, the economic sanctions administered by OFAC pursuant to the Zimbabwe sanctions program are no longer in effect.

The president’s Executive Order of March 4, 2024, “Termination of Emergency With Respect to the Situation in Zimbabwe,” terminated the national emergency declared in E.O. 13288 and built upon in E.O. 13391 and E.O. 13469. As a result:

• All persons blocked solely pursuant to Executive Order 13288, 13391, or 13469 (the authorities of the Zimbabwe Sanctions Program) are being removed from OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List;
• All property and interests in property blocked solely pursuant to the Zimbabwe Sanctions Program is now unblocked; and
• OFAC will remove the Zimbabwe Sanctions Regulations from the Code of Federal Regulations.

For details on the new, removed, and updated SDN listings and a link to the Executive Order, see BankersOnline's March 4, 2024, OFAC Update.

FinCEN has reported that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction (AML/CFT/CPF), issued an additional public statement at the conclusion of its plenary meeting this month reiterating how the Russian Federation’s war of aggression against Ukraine continues to run counter to FATF’s principles, and, thus, the suspension of the membership of the Russian Federation continues to stand. The FATF highlighted the potential risks to the international financial system, including growing financial connectivity of Russia with the Democratic People’s Republic of Korea (DPRK) and Iran, and risks of proliferation financing, malicious cyber activities, and ransomware attacks. In order to protect the international financial system, the FATF continues to urge all jurisdictions to remain vigilant to these risks.

The FATF also updated its lists of jurisdictions with strategic AML/CFT/CPF deficiencies. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.

On February 23, 2024, the FATF added Kenya and Namibia to its list of Jurisdictions Under Increased Monitoring and removed Barbados, Gibraltar, Uganda, and the United Arab Emirates from that list.

The FATF’s list of High-Risk Jurisdictions Subject to a Call for Action remains the same, with Iran, DPRK, and Burma subject to calls for action. Iran and DPRK are still subject to the FATF’s countermeasures, while Burma is still subject to the application of enhanced due diligence, but not countermeasures.

Yesterday, OFAC redesignated the Los Pochos Drug Trafficking Organization (DTO), and designated three members and four affiliated companies based in Guatemala. First sanctioned in 2019 pursuant to the Kingpin Act, the Los Pochos DTO is a Guatemala-based organization primarily engaged in cocaine trafficking from Guatemala through Mexico to the United States.

For the names and identification information of the designated parties, see this BankersOnline OFAC Update.

This morning, the FDIC has published [89 FR 14649] a Federal Register notice that it intends to terminate its receiverships of the following 17 banks on or after March 29, 2024:

• Warren Bank, Warren, MI
• Citizens State Bank, New Baltimore, MI
• Rockbridge Commercial Bank, Atlanta, GA
• Independent Bankers' Bank, Springfield, IL
• Barnes Banking Company, Kaysville, UT
• Centennial Bank, Ogden, UT
• Lincoln Park Savings Bank, Chicago, IL
• Crescent Bank and Trust Company, Jasper, GA
• Liberty Bank, Eugene, OR
• The Cowlitz Bank, Longview, WA
• Ravenswood Bank, Chicago, IL
• Premier Bank, Jefferson City, MO
• K Bank, Randallstown, MD
• First Banking Center, Burlington, VT
• The Bank of Miami, N.A., Coral Gables, FL
• Community South Bank, Parsons, TN
• Seaway Bank and Trust, Chicago, IL