Home>Blog>The remittance of OFAC list would be refused even cause bank is closed

The remittance of OFAC list would be refused even cause bank is closed

Usually, international remittance takes three to five business days to collect payment, 7 business days at most.

It is faster to transfer money from Hong Kong to China mainland. Payment can be received in the same working day or the next day morning.

Payment can not be recorded in time, the recipient’s information is not filled in the case, it is likely that the following two reasons:
Section in the transit line was random checks; (all the money transfer are in the United States transit)
Remittance lines are on the list of sanctions;

OFAC sanctions over 20 countries remittance. The list as below:

制裁名单 英文 update date
巴尔干相关 Balkans-Related  Sanctions 02/03/2017
白俄罗斯 Belarus  Sanctions 04/28/2017
布隆迪 Burundi  Sanctions 06/02/2016
中非共和国 Central African  Republic Sanctions 04/12/2017
古巴 Cuba Sanctions 06/16/2017
古巴相关 Cyber-related  Sanctions 02/08/2017
刚果民主共和国相关 Democratic  Republic of the Congo-Related Sanctions 06/01/2017
伊朗 Iran Sanctions 05/17/2017
伊拉克相关 Iraq-Related  Sanctions 04/04/2016
黎巴嫩相关 Lebanon-Related  Sanctions 07/30/2010
利比亚 Libya Sanctions 04/13/2017
马格尼茨基 Magnitsky  Sanctions 01/09/2017
朝鲜 North Korea  Sanctions 06/29/2017
索马里 Somalia  Sanctions 07/05/2012
苏丹和达尔富尔 Sudan and Darfur  Sanctions 01/13/2017
南苏丹相关 South  Sudan-related Sanctions 04/04/2016
叙利亚 Syria Sanctions 06/21/2017
乌克兰/俄罗斯相关 Ukraine-/Russia-Related  Sanctions 06/20/2017
委内瑞拉相关 Venezuela-Related  Sanctions 05/18/2017
也门相关 Yemen-Related  Sanctions 04/14/2015
津巴布韦 Zimbabwe  Sanctions 04/12/2017

Check the lastest list at https://www.treasury.gov/about/organizational-structure/offices/Pages/Office-of-Foreign-Assets-Control.aspx

OFAC, the Office of Foreign Assets Control of the US Department of the Treasury, whose mission is to manage and enforce all economic and trade sanctions based on US national security and foreign policy, including all Terrorism, transnational drug and narcotic drugs, and the proliferation of weapons of mass destruction. OFAC is directly affiliated with the US Presidential Wartime and National Emergency Situations Committee and is authorized by special legislation to control and freeze all foreign assets in the United States and to work closely with European allies in the United States on foreign economic and trade sanctions.

The history of the US government’s economic and trade sanctions was first traced back to the 1812 US-British war. In the 1860-1864 American Civil War, the Northern Federal Parliament of the United States passed the law to authorize the Ministry of Finance to confiscate the Southern Union property in war. OFFC was formerly known as the Office of Foreign Funds Control (FFC), which was led by the US Treasury Secretary in 1940. After the Second World War, the FFC has been Plays an important role in the US economy and trade sanctions against the Axis. OFAC itself was established in December 1950 when the Chinese army entered the Korean Peninsula, when the thirty-third president of the United States Truman announced the state into a state of emergency and with OFAC frozen China and North Korea in the United States all the property.

Today, OFAC is still the most important government department in the United States that deals with economic and trade sanctions for specific countries, regions and people. In recent years, with the worldwide anti-corruption, anti-money laundering movement, OFAC’s policies and directives have become the operating principles that the world’s financial industry, especially the United States and financial institutions that are closely linked with the US financial industry can not be ignored.

OFAC’s economic and trade sanctions are divided into six parts: Specially Designated Nationals Sanctions, Anti-terrorism Sanctions, Non-Proliferation Sanctions, Narcotics Trafficking Sanctions, Cuba Sanctions, Other OFAC Sanctions Program. For each of these sanctions, Are legally governed by the legislative basis of US federal laws or administrative regulations, and OFAC is authorized to seize or freeze suspicious property. These six mutually independent and interrelated sanctions together form a system that covers a large number of industries, with strong penalties and affecting the US economy and trade sanctions across the globe.

OFAC has reassessed and updated its economic and trade sanctions for the six major divisions within its scope of management, and will publish a list of sanctions based on the results of the assessment and the United States national security and foreign policy. All countries, regions or individuals on these lists are considered to be likely to pose a threat to US national security and foreign policy, or that their conduct has violated international law and is an international crime. At the same time, this series of sanctions lists is not simply the name of the ruler’s name, but with the legal effect of administrative law in the sense of the United States law, “apply to all the United States and groups” (Apply to all US Persons and entities (companies, non-profit groups, government agencies, etc.). Wherever located. Once included in any list, the listed person is caught in an intangible but ubiquitous sanctions network, at least in the United States forces can control and influence within the scope of all his financial behavior are facing Was rejected, all his property is faced with a huge economic risk of restricted transfer. In order to avoid the political pressure and legal risks from the US government, all US financial institutions are required to conduct a transaction on the OFAC list of their counterparties, only when the counterparty is not on the OFAC list , Can be with the transaction; the other hand, you must suspend the transaction.

Sensitive high-risk countries and regions in three categories.

1, high risk class I countries and regions list:
Iran, North Korea, Sudan, Cuba, Syria, Myanmar, Yemen, Crimea (Ukraine).

2, high-risk category II countries and regions list:
Libya, Somalia, Somalia, Ukraine, Panama, the Balkan region, Afghanistan, Belarus, Central Africa, Côte d’Ivoire, Democratic Republic of the Congo, Iraq, South Sudan, Zimbabwe, Sierra Leone, Eritrea, Algeria, Ecuador, Angola, Cambodia, Namibia, Nicaragua, Pakistani Tanzania, Papua New Guinea, Uganda.

3, high-risk category III countries and regions list:
Russia, Lebanon, United Arab Emirates, British Virgin Islands, Bermuda, Cayman Islands, Nauru, Western Samoa, American Samoa, Bahamas, Seychelles, Marshall Islands, Liechtenstein, Andorra, Burriton, Djibouti, Cyprus, Kenya, Kyrgyzstan, Nepal, Tanzania, Turkey, Indonesia, Lebanon, Tajikistan, Kuwait, Ethiopia, Albania, Lao People’s Democratic Republic.

All offshore customers (Hong Kong, UK, island companies) to open offshore accounts customers need to pay attention:
1, if your bank account in the past year, no transactions, transactions, there is no active account type, the bank will freeze the account, not processed will be sold.
2, if your company legal person or shareholder for the international and US sanctions against the state, will be the initiative to sell the bank.
3, the transaction occurred in your account by the international and US sanctions the country, the same will be frozen account, and write off.
4, if you are in the opening account, not the bank assigned to the designated account manager (this is a historical issue, no reason to say), the account will be frozen (unable to access funds), until the bank designated to the account manager.
5, the company if not on time trial, will be bank inventory, freeze the account, not timely audit will be sold.

Bank of China Bank issued a notice, from July 7th,2017, the new list of four sanctions banks, namely:
Arab banking corporation
National commercial bank
Mshreq bank
National bank of dhabi

In addition, there are some political instability, civil unrest areas or countries, not in the column, but the bank will be concerned.

        Like 1