Counter Narcotics and Iran-related Designations; Russia-related Designations Updates; Issuance of Iran-related General License and Guidance; Publication of Fraud Alert

The Office of Foreign Assets Control (OFAC) has published a press release informing about new sanction measures. Specifically, the Office added several entities and related vessels to its Specially Designated Nationals and Blocked Persons List (SDN List) pursuant to existing sanction regulations (Executive Order 13846 and Executive Order 14059) for their engagement in timeshare fraud in Mexico, among others. Eight of the firms are related to the Cartel de Jalisco Nueva Generacion (CJNG) which is involved in large scale drug trafficking. The affected entities are the following; we refrain from listing all sanctioned vessels at this point due to the large number of sanctioned ships:
———————-
#### Newly Sanctioned Entities
BUSHEHR PETROCHEMICAL COMPANY (a.k.a. „BUPC“), No. 7, 3rd and 4th Floor, Sattarkhan St., Habib Elah St., Metolian Blvd., Tehran 1455693916, Iran; Pars Energy Special Economic Zone, Petrochemical Complexes Phase II, Asalouye, Bushehr 7511811374, Iran; Asli Neighborhood, Asli Road Street, Nakhl Taqi’s 15 Kilometer Road, Number 0, Ground Floor, Nakhl Taqi, Bushehr 7511811374, Iran; Additional Sanctions Information – Subject to Secondary Sanctions; Executive Order 13846 information: BLOCKING PROPERTY AND INTERESTS IN PROPERTY. Sec. 5(a)(iv); Company Number 10101920878 (Iran) [IRAN-EO13846].
CORPORATIVO TITLE I, S.A. DE C.V., Guadalajara, Jalisco, Mexico; Folio Mercantil No. 85318 (Mexico) [ILLICIT-DRUGS-EO14059].
CORPORATIVO TS BUSINESS INC, S.A. DE C.V., Guadalajara, Jalisco, Mexico; Folio Mercantil No. 86007 (Mexico) [ILLICIT-DRUGS-EO14059].
GLOBAL MARINE SHIP MANAGEMENT CO., LTD. (Chinese Traditional: 匯海船舶管理有限公司) (a.k.a. FENGHUI SHIP MANAGEMENT CO., LTD. (Chinese Traditional: 豐匯船舶管理有限公司); a.k.a. GLOBAL MARINE SHIP MANAGEMENT CO., LIMITED; a.k.a. HUIHAI SHIP MANAGEMENT CO., LTD. (Chinese Simplified: 汇海船舶管理有限公司)), Room 1708, Zhongshang Building, No. 100, Hong Kong Middle Road, Shinan District, Qingdao, Shandong Province, China; Flat C, 15th Floor, Unionway Commercial Centre, 283 Queens Road, Central, Hong Kong, China; Room 2108, 21/F, C Wu Building, 302-308 Hennessy Road, Wanchai, Hong Kong, China; Website www.GMSHIPS.com; Executive Order 13846 information: BLOCKING PROPERTY AND INTERESTS IN PROPERTY. Sec. 5(a)(iv); Identification Number IMO 5528362; Commercial Registry Number 1427788 (China) [IRAN-EO13846].
GOLDEN LOTUS OIL GAS AND REAL ESTATE JOINT STOCK COMPANY (a.k.a. GOLDEN LOTUS OIL GAS & REAL; a.k.a. GOLDEN LOTUS OIL GAS AND REAL), 67 Pho Duc Chinh, Truc Bach Ward, Ba Dinh District, Hanoi, Vietnam; Executive Order 13846 information: BLOCKING PROPERTY AND INTERESTS IN PROPERTY. Sec. 5(a)(iv); Identification Number IMO 6144804; Business Registration Number 0108209906 (Vietnam) [IRAN-EO13846].
INTEGRACION BADEVA, S.A. DE C.V., Puerto Vallarta, Jalisco, Mexico; Folio Mercantil No. 16553 (Mexico) [ILLICIT-DRUGS-EO14059].
JM PROVIDERS OFFICE, S.A. DE C.V., Blvd. Francisco Medina Ascencio S/N Int. 36, Col. Zona Hotelera Norte, Puerto Vallarta, Jalisco C.P. 48333, Mexico; Bahia de Banderas, Nayarit, Mexico; R.F.C. JPO151113I59 (Mexico); Folio Mercantil No. 2107 (Mexico) [ILLICIT-DRUGS-EO14059].
PROMOTORA VALLARTA ONE, S.A. DE C.V. (a.k.a. INTELECTO BUSINESS GROOP), Bucerias, Nayarit, Mexico; Avenida Paseo de los Heroes 10289, Piso 3 3006, Colonia Zona Urbana Rio Tijuana, Tijuana, Baja California C.P.22505, Mexico; Folio Mercantil No. 1769 (Mexico) [ILLICIT-DRUGS-EO14059].
RECSERVI, S.A. DE C.V., Bucerias, Nayarit, Mexico; Folio Mercantil No. 1771 (Mexico) [ILLICIT-DRUGS-EO14059].
SERVICIOS ADMINISTRATIVOS FORDTWOO, S.A. DE C.V., Calle Francia 394, Colonia Versalles, Puerto Vallarta, Jalisco, Mexico; Plaza Genovesa S/N L 39, Puerto Vallarta, Jalisco 48305, Mexico; Bucerias, Nayarit, Mexico; Calle Isla Antigua 3017, Colonia Residencial de la Cruz, Guadalajara, Jalisco C.P. 44970, Mexico; R.F.C. SAF130812CL4 (Mexico); Folio Mercantil No. 1754 (Mexico) [ILLICIT-DRUGS-EO14059].
SHANGHAI XUANRUN SHIPPING COMPANY LIMITED, Haiyi Villa, 42, Lane 97, Songlin Lu, Pudong Xinqu, Shanghai 200120, China; Room 413, Block A, International Trade Hotel, No.188, Yesheng Road, Yangshan Bonded Zone, Shanghai 200122, China; Website www.xr-shipping.com; Executive Order 13846 information: BLOCKING PROPERTY AND INTERESTS IN PROPERTY. Sec. 5(a)(iv); Identification Number IMO 5532651; Unified Social Credit Code (USCC) 913100005515644191 (China) [IRAN-EO13846].
SHIRAZ PETROCHEMICAL COMPANY (a.k.a. SHIRAZ PETROCHEMICAL; a.k.a. SHIRAZ PETROCHEMICAL CO.; a.k.a. SHIRAZ PETROCHEMICAL COMPLEX; a.k.a. „SPC“), 6 Km Of Pol-E-Khan Road-Dorodzan Dam, PO Box 415, Shiraz, Fars 73491-31736, Iran; No. 5 Farivar Alley, Ghaem Magham Street, Tehran, Iran; Website www.spc.co.ir; Additional Sanctions Information – Subject to Secondary Sanctions; Executive Order 13846 information: BLOCKING PROPERTY AND INTERESTS IN PROPERTY. Sec. 5(a)(iv); Tax ID No. 411168731673 (Iran); Company Number 10530010025 (Iran) [IRAN-EO13846].
SWEDISH MANAGEMENT CO SA, Office Number 82, Floor Number 8, Ajman Chamber of Commerce Building, Ajman, United Arab Emirates; Amro Street, PO Box 25701, Dubai, United Arab Emirates; Website www.swedishmanagement.ae; Executive Order 13846 information: BLOCKING PROPERTY AND INTERESTS IN PROPERTY. Sec. 5(a)(iv); Identification Number IMO 5186278 [IRAN-EO13846].
TS BUSINESS CORPORATIVO, S.A. DE C.V., Guadalajara, Jalisco, Mexico; Folio Mercantil No. 86141 (Mexico) [ILLICIT-DRUGS-EO14059].
———————-
OFAC has also made changes to its SDN List as follows:
ARGON OOO (a.k.a. OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTYU ARGON; a.k.a. „ARGON“), Ul. Saratovskoe Shosse D. 2, Balakovo 413841, Russia; Organization Established Date 09 Jun 2005; Tax ID No. 6454074501 (Russia); Government Gazette Number 75969440 (Russia); Registration Number 1056405421192 (Russia) [RUSSIA-EO14024]. -to- ARGON OOO (a.k.a. OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTYU ARGON; a.k.a. „ARGON“), Ul. Saratovskoe Shosse D. 2, Balakovo 413841, Russia; Organization Established Date 09 Jun 2005; Tax ID No. 6454074501 (Russia); Government Gazette Number 75969440 (Russia); Registration Number 1056405421192 (Russia) [RUSSIA-EO14024] (Linked To: UMATEX JOINT-STOCK COMPANY).
BY TRADE OU, Tornimae tn 7-25, Tallinn 10141, Estonia; Organization Established Date 08 May 2013; Organization Type: Wholesale of other machinery and equipment; Target Type Private Company; V.A.T. Number EE101961831 (Estonia); Registration Number 12470521 (Estonia) [RUSSIA-EO14024]. -to- BY TRADE OU, Tornimae tn 7-25, Tallinn 10141, Estonia; Organization Established Date 08 May 2013; Organization Type: Wholesale of other machinery and equipment; Target Type Private Company; V.A.T. Number EE101961831 (Estonia); Registration Number 12470521 (Estonia) [RUSSIA-EO14024] (Linked To: MALBERG LIMITED).
UMATEX GROUP EUROPE S.R.O., Namesti I. P. Pavlova 1789/5, Prague 12000, Czech Republic; Organization Established Date 10 Nov 2016; V.A.T. Number CZ05556121 (Czech Republic); Registration Number 05556121 (Czech Republic) [RUSSIA-EO14024]. -to- UMATEX GROUP EUROPE S.R.O., Namesti I. P. Pavlova 1789/5, Prague 12000, Czech Republic; Organization Established Date 10 Nov 2016; V.A.T. Number CZ05556121 (Czech Republic); Registration Number 05556121 (Czech Republic) [RUSSIA-EO14024] (Linked To: UMATEX JOINT-STOCK COMPANY).
ZAVOD ULGERODNYKH I KOMPOZITSIONNYKH MATERIALOV (a.k.a. OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTYU ZAVOD UGLERODNYKH I KOMPOZITSIONNYKH MATERIALOV; a.k.a. ZUKM OOO), Territoriya Chelyabinskogo Elektrodnogo Zavoda, Chelyabinsk 454038, Russia; Tax ID No. 7450045935 (Russia); Government Gazette Number 94812603 (Russia); Registration Number 1067450027248 (Russia) [RUSSIA-EO14024]. -to- ZAVOD ULGERODNYKH I KOMPOZITSIONNYKH MATERIALOV (a.k.a. OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTYU ZAVOD UGLERODNYKH I KOMPOZITSIONNYKH MATERIALOV; a.k.a. ZUKM OOO), Territoriya Chelyabinskogo Elektrodnogo Zavoda, Chelyabinsk 454038, Russia; Tax ID No. 7450045935 (Russia); Government Gazette Number 94812603 (Russia); Registration Number 1067450027248 (Russia) [RUSSIA-EO14024] (Linked To: UMATEX JOINT-STOCK COMPANY).
———————-
OFAC has also issued a new General License (GLO) to permit otherwise prohibited transactions for purposes of the „Wind-Down and Limited Safety and Environmental Transactions Involving Certain Vessels“ of four of the newly sanctioned firms or any firms controlled by such (50% or more ownership), namely:
(1) Golden Lotus Oil Gas and Real Estate Joint Stock Company;
(2) Swedish Management CO SA;
(3) Shanghai Xuanrun Shipping Company Limited; or
(4) Global Marine Ship Management Co., Ltd.
———————-
Additionally, OFAC has issued two new frequently asked questions to clarify just which transactions are prohibited or permitted under the above noted new general license.
FAQ 1119: Does General License (GL) O authorize all wind-down transactions for any vessel that was blocked on March 2, 2023? What if the vessel contains Iranian-origin merchandise?
Answer: Iran GL O authorizes U.S. persons to wind down all transactions otherwise prohibited by section 5 of Executive Order 13846 involving any vessel blocked as part of the March 2, 2023 designation (“blocked vessels”), subject to certain conditions. This includes, among other activities, the unloading of any non-Iranian merchandise loaded on the blocked vessel as of March 2, 2023, provided there is no other sanctions nexus.
U.S. persons are separately prohibited, pursuant to the Iranian Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR), from engaging in most Iran-related transactions. Accordingly, for blocked vessels containing Iranian-origin merchandise or involving persons ordinarily resident in Iran, Iran GL O provides a separate, more limited authorization under the ITSR. This narrower authorization under the ITSR allows only transactions ordinarily incident and necessary to certain limited safety and environmental situations: the safe docking and anchoring of any of the blocked vessels in port; the preservation of the health and safety of the crew; or emergency repairs or environmental mitigation or protection activities. The offloading of Iranian-origin petroleum, petroleum products, or petrochemical products, regardless of the situation, is not authorized pursuant to Iran GL O and requires a specific license from OFAC.
U.S. financial institutions may also process transactions conducted by non-U.S. persons if such transactions would be authorized for U.S. persons pursuant to Iran GL O.
Iran GL O is in effect until 12:01 eastern daylight time, June 30, 2023. Persons unable to complete authorized transactions involving the blocked vessels specified in Iran GL O before its expiration are encouraged to seek guidance from OFAC in advance of that date. As with all OFAC GLs, Iran GL O only authorizes against the authorities identified in the GL and contains certain conditions. Please see Iran GL O for further details.
FAQ 1120: Do non-U.S. persons risk exposure to U.S. sanctions for engaging in transactions that U.S. persons would be authorized to engage in under Iran General License (GL) O?
Answer: No. Non-U.S. persons generally do not risk exposure to sanctions for engaging in activities or facilitating transactions for such activities that would be authorized for U.S. persons pursuant to GL O . Non-U.S. persons unable to wind down transactions in accordance with Iran GL O before 12:01 a.m. eastern daylight time, June 30, 2023, are encouraged to seek guidance from OFAC in advance of that date.
———————-
Finally, OFAC has issued what it calls an OFAC Alert to warn of a new fraud scheme involving persons that claim to be calling or contacting firms and persons on behalf of OFAC and that „demand payments, occasionally described as “fees” or “taxes,” necessary for OFAC to release funds or pay some form of restitution“. In this context, OFAC emphasizes that it does NOT „collect, demand, or request“ any such payment from any firm or person. Affected victims shall contact OFAC or any of the Departments or Offices outlined in the alert.