OFAC Alert: OFAC issues new regulations on PDVSA/ALBANISA-related sanctions

On February 11, 2019, the Office of Foreign Assets Control (“OFAC”) issued new regulations in connection with the January 28, 2019 designation of Petróleos de Venezuela, S.A. (“PDVSA”) and of any entity in which PDVSA owns, directly or indirectly, a 50 percent or greater interest, such as Alba de Nicaragua S.A. (“ALBANISA”).

OFAC issued two new general licenses: General License 3C authorizing U.S. persons to engage in all transactions related to, the provision of financing for, and other dealings in the bonds that are listed therein; and General License 9B authorizing U.S. persons to engage in all transactions and activities related to dealings in certain securities.

OFAC also issued new guidelines on (i) the scope of General Licenses 3C and 9B; (ii) the level of due diligence that financial institutions or registered broker-dealers should have to ensure that certain transfers or divestment of debt and equity from PDVSA or the Government of Venezuela are consistent with the terms of General Licenses 3C and 9B.

Michael Diaz, Javier Coronado
Tel: +1 (305) 375-9220
mdiaz@diazreus.com, jcoronado@diazreus.com