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This morning, FinCEN published [89 FR 4820] a final rule to reflect inflation adjustments to its civil monetary penalties as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. This rule adjusts certain maximum civil monetary penalties within the jurisdiction of FinCEN to the amounts required by that Act.

The rule amends 31 CFR 1010.821 and is effective today.

On Tuesday, OFAC, in coordination with Australia and the United Kingdom, designated Alexander Ermakov, a cyber actor who played a pivotal in the 2022 ransomware attack against Medibank Private Limited, an Australian healthcare insurer.

Australia sanctioned Ermakov on Monday for utilizing ransomware to attack the Medibank network and for the exfiltration of sensitive data of 9.7 million users of Medibank services. Tuesday, the United States and the United Kingdom, in solidarity with Australia, took action against Ermakov because of the similar risk he presents to the United States and the UK.

For identification information on Ermakov, see BankersOnline's January 23, 2024, OFAC Update.

The Department of the Treasury on Monday announced that OFAC had designated Iraqi airline Fly Baghdad and its CEO for providing assistance to the Islamic Revolutionary Guard Corps–Qods Force (IRGC-QF) and its proxy groups in Iraq, Syria, and Lebanon. OFAC also designated three leaders and supporters of one of the IRGC-QF’s main Iran-aligned militias in Iraq, Kata’ib Hizballah (KH), as well as a business that moves and launders funds for KH.

Treasury also announced that OFAC has imposed a fifth round of sanctions on Hamas since the October 7 terrorist attack on Israel. Monday’s action targets networks of Hamas-affiliated financial exchanges in Gaza, their owners, and associates, and particularly financial facilitators that have played key roles in funds transfers, including cryptocurrency transfers, from the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) to Hamas and Palestinian Islamic Jihad (PIJ) in Gaza. Concurrent with OFAC’s designations, the United Kingdom and Australia are also placing sanctions on key Hamas officials and facilitators.

For the names and identification information of individuals, entities, and aircraft targeted in these OFAC actions, see the January 22, 2024, BankersOnline OFAC Update.

OFAC has released the first video in its "OFAC Basics" video series. The OFAC Basics: Sanctions List Search YouTube video provides viewers with a brief tutorial on how to use OFAC’s Sanctions List Search Tool and recommended steps for assessing a potential match to one of OFAC’s published sanctions lists.

The “OFAC Basics” series serves as a companion series to the “Introduction to OFAC” series, also available on YouTube.

The Federal Reserve Board on Friday announced it has issued an enforcement action against Industrial and Commercial Bank of China Ltd. and its New York branch for their unauthorized use and disclosure of confidential supervisory information (CSI). The consent order requires the bank to pay a civil money penalty of $2,431,956 and to submit a written plan to enhance the effectiveness of the branch's internal controls and compliance functions regarding the identification, monitoring, and control of CSI.

Confidential supervisory information includes reports of bank examinations and other confidential communications by banking regulators. It is illegal to disclose confidential supervisory information without prior approval of the appropriate banking regulator.

The Board's action was taken in conjunction with an action by the New York Department of Financial Services, the state supervisor of the bank's New York branch. The penalties announced by the Board and the Department of Financial Services total approximately $32.4 million.

On Thursday, the Treasury Department reported that OFAC took its first oil price cap enforcement action of 2024, targeting a shipping company linked to a price cap violation.

United Arab Emirates-based shipping company Hennesea Holdings Limited (Hennesea) is the ultimate owner of 18 vessels, including the HS Atlantica, which OFAC previously identified as having engaged in the transport of crude oil of Russian Federation origin priced above the $60 per barrel price cap while using a covered U.S.-based provider after the price cap policy came into effect. On December 1, 2023, OFAC identified the HS Atlantica as property in which Hennesea’s subsidiary, U.S.-designated HS Atlantica Limited, has an interest. OFAC additionally re-identified the HS Atlantica as property in which Hennesea has an interest. OFAC also designated 17 other vessels in which Hennesea has an interest.

For identification information on Hennesea and the designated vessels, see this January 18, 2024, BankersOnline OFAC Update.

Yesterday, the Treasury Department reported that OFAC had sanctioned former Guatemalan Minister of Energy and Mining Alberto Pimentel Mata for his role in exploiting the Guatemalan mining sector through widespread bribery schemes, including schemes related to government contracts and mining licenses. Pimentel was designated under the authority of Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. Yesterday’s action follows the Department of State’s October 2023 announcement of visa restriction on Pimentel and other individuals for their involvement in significant corruption.

As a result of yesterday’s action, all property and interests in property of Pimentel that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

For identification information on Pimentel, see the January 17, 2024, BankersOnline OFAC Update.

On Friday, the Treasury Department reported that OFAC designated two companies in Hong Kong and the United Arab Emirates for shipping Iranian commodities on behalf of the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial facilitator Sa’id al-Jamal. OFAC also identified four vessels as blocked property in which these companies have an interest. The revenue from the commodity sales supports the Houthis and their continued attacks against international shipping in the Red Sea and the Gulf of Aden.

For the names and identification information of the designated entities and vessels, see the January 12, 2024, BankersOnline OFAC Update.

FinCEN has issued Paycheck Protection Program FAQs to re-publish a series of FAQs issued by the U.S. Small Business Administration.

FinCEN has updated its FAQs on Beneficial Ownership Information Reporting. New or updated information dated January 12, 2024, can be found in these sections:

• C (Reporting Company)
• D (Beneficial Owner)
• E (Company Applicant)
• F (Reporting Requirements)
• L (Reporting Company Exemptions)
• M (FinCEN Identifier)