Global Magnitsky Designation; Issuance of Global Magnitsky General License and Frequently Asked Question

The Office of Foreign Assets Control (OFAC) has published a press release informing about new sanction measures. Specifically, the Office added one entity to its Specially Designated Nationals and Blocked Persons List (SDN List) pursuant to existing sanction regulations (Executive Order 13818 and 31 CFR Part 583). The affected firm is the following:
TABACALERA DEL ESTE S.A. (a.k.a. TABESA), Ybyra Pyta s/n Esquina Mandarinas, Villa Conavi II, Hernandarias 7220, Paraguay; Calle Yvyra Pyta y Mandarinas, Barrio Santa Teresa, Ciudad Hernandarias, Alto Parana, Paraguay; Organization Established Date 1994; Organization Type: Wholesale of food, beverages and tobacco; Tax ID No. 80008790-9 (Paraguay) [GLOMAG] (Linked To: CARTES JARA, Horacio Manuel).
Additionally, OFAC has issued a new General License (GL 7) to permit otherwise prohibited financial transactions concerning the newly sanctioned firm TABACALERA DEL ESTE S.A., namely those that constitute „payments under the tobacco Master Settlement Agreement (MSA), entered into on November 23, 1998 between certain U.S. state and territory attorneys general and certain tobacco companies“.
Finally, OFAC has issued a new frequently asked question (FAQ) to clarify just which transactions are authorized under the new general license. The new FAQ reads as follows – as quoted:
FAQ 1121: What does Global Magnitksy General License 7, Authorizing Certain Transactions Involving Tabacalera del Este, S.A. or Tabacos USA Inc. Pursuant to the Tobacco Master Settlement Agreement, authorize?
Answer: Global Magnitsky General License 7 authorizes certain transactions involving the blocked entities Tabacos USA Inc. (Tabacos) and Tabacalera del Este S.A. (Tabesa) (or any entity in which Tabesa or Tabacos owns, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest) that are ordinarily incident and necessary to payments under the Master Settlement Agreement (MSA) entered into on November 23, 1998 between certain U.S. state and territory attorneys general and certain tobacco companies. On January 26, 2023, OFAC designated former Paraguayan president Horacio Manuel Cartes Jara (Cartes) pursuant to Executive Order 13818 for involvement in corruption and also designated Tabacos for being owned or controlled by Cartes. On March 31, 2023, OFAC identified Tabesa as an entity that is owned, directly or indirectly, 50 percent or more by Cartes and added Tabesa to the SDN List.
Global Magnitsky General License 7 does not authorize debits to any blocked account on the books of a U.S. financial institution or any other transactions otherwise prohibited by the Global Magnitsky Sanctions Regulations.