OFAC updates regulations on transactions with Ansarallah and specified provisions to Yemen

OFAC updates regulations on transactions with Ansarallah and specified provisions to Yemen
Geopolitics
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Steven H. Fagin, Ambassador | U.S. Mission to Yemen

The Office of Foreign Assets Control has issued General License No. 22A, which is an update to the regulations concerning transactions involving Ansarallah as per the Global Terrorism Sanctions Regulations (GTSR) and the Foreign Terrorist Organizations Sanctions Regulations (FTOSR). The general license allows certain transactions, which would typically be prohibited, regarding the provision of specific goods to Yemen.

According to the new regulations, "all transactions prohibited by the Global Terrorism Sanctions Regulations, 31 CFR part 594 (GTSR), or the Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part 597 (FTOSR), involving Ansarallah, or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest," are authorized if they involve the provision of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices, to Yemen or to persons in third countries purchasing these items for Yemen.

The general license defines agricultural commodities as those products that fall within the definition provided by the Agricultural Trade Act of 1978 and are intended for use in Yemen either as food for humans or animals, seeds for food crops, fertilizers, or reproductive materials for food animals. Medicines and medical devices are also defined under specific sections of the Federal Food, Drug, and Cosmetic Act.

The general license does not authorize financial transfers to blocked individuals, except in specific circumstances such as the payment of taxes or duties, or the acquisition of permits and public utilities. Additionally, it does not allow any transactions that remain prohibited under the GTSR or FTOSR without separate authorization.

It is noted in the general license that "nothing in this general license relieves any person from compliance with any other federal laws or requirements of other federal agencies."

General License No. 22A became effective on March 5, 2025, and supersedes the previous General License No. 22 issued on January 17, 2024.