Sanctions Compliance Guidance for Authorized Transactions Related to Earthquake Relief Efforts in Syria

In view of numerous questions received by the Office of Foreign Assets Control (OFAC) as regards its recently issued General License 23 pertaining to the permission of certain (financial) transactions for purposes of providing earthquake-related relief to Syria (please see EventID 19623 for more information on the License), OFAC has published a guidance in this context. With this guidance – which is in form of frequently asked questions (FAQs) – OFAC aims to clarify just which (trans)actions are permitted and which would violate existing U.S. sanctions.
Some of the key questions addressed in the guidance particularly relevant for financial institutions are noted below:
Question: Are U.S. financial institutions allowed to process transactions related to earthquake relief efforts in Syria? (page 3)
Answer: Yes. Subject to the conditions described in GL 23, all transactions related to earthquake relief efforts in Syria are authorized. U.S. financial institutions and U.S.-registered money transmitters may rely on the originator of a funds transfer with regard to compliance with the terms of GL 23, provided that the financial institution does not know or have reason to know that the funds transfer is not in compliance with the terms of GL 23.
Question: Are transactions related to earthquake relief efforts in Syria prohibited if they involve the Government of Syria? (page 4)
Answer: No. Transactions related to earthquake relief efforts in Syria involving the Government of Syria, as defined in 31 CFR § 542.305(a), that would otherwise be prohibited by the Syrian Sanctions Regulations are authorized by GL 23. Note that GL 23 does not authorize transactions involving other persons blocked pursuant to the Syrian Sanctions Regulations, including corporations, partnerships, associations, or other entities directly or indirectly owned or controlled by the Government of Syria. GL 23 applies only to transactions related to earthquake relief efforts.
Question: Do non-U.S. persons, including NGOs and financial institutions, risk exposure to U.S. sanctions pursuant to the Caesar Act for activities that would be authorized under GL 23? (page 6)
Answer: No. With respect to non-U.S. persons, OFAC will not consider transactions to be “significant” for the purpose of a sanctions determination under the Caesar Act if U.S. persons would not require a specific license from OFAC to participate in such a transaction. Accordingly, non-U.S. persons, including NGOs and foreign financial institutions, would not risk exposure to sanctions under the Caesar Act for engaging in activity, or facilitating transactions and payments for such activity, that is authorized for U.S. persons under GL 23. For more information, please see FAQ 884.
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As these are only the key questions we find particularly relevant for financial institution, please refer to the original guidance for the complete list of FAQs.