Sanctions and Restricted Parties

Scope

This policy applies to all activities, including financial transactions or services, given or received by the University.  

Reason for Policy

The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy, or the economy of the United States. This policy identifies processes to ensure compliance with the Foreign Assets Control Regulations (“FACR”) found at 31 CFR §§ 500-599.

Policy Statement

As an organization incorporated to do business in the U.S., the University (and its representatives: faculty, staff, students) is obligated to ensure compliance with the FACR. These regulations apply to all persons located in the United States (regardless of citizenship) and to all U.S. persons (wherever located). As such, the University cannot engage in activities (including financial transactions) with people from or located in certain countries and regions (subject to Comprehensive Sanctions) or with certain entities (subject to Targeted Sanctions) without governmental approval.

It is the policy of the University to not engage in any activity subject to the FACR unless appropriate governmental authorization has been obtained. A list of comprehensively sanctioned countries and regions can be found at the Research Security and Compliance webpage. Research Security and Compliance and Shared Services has the ability to identify if entities are subject to targeted sanctions. Due to the dynamic nature the FACR, changes to these lists occur regularly. Sanctions regulations are stringent and complex, and each sanctions program is unique in design. While OFAC provides guidance for each sanctions program, Research Security and Compliance must review and approve all activities subject to these regulations before they occur.  Research Security and Compliance maintains expertise in the analysis and application of sanctions programs as they relate to university activities and will submit applications for specific Licenses from OFAC on a case-by-case basis for certain activities that align with the mission of the University.

Definitions

Comprehensive Sanctions - Generally, comprehensive sanctions include broad-based trade restrictions and prohibit commercial activity with an entire country. Comprehensive sanctions sometimes contain exceptions for humanitarian assistance. For example, the United States maintains broad authorizations and exceptions that allow for the provision of food, medicine, and medical devices by U.S. persons or entities from the U.S. to some countries subject to comprehensive sanctions.

Targeted Sanctions - Targeted sanctions restrict transactions of and with specific persons or entities. For example, the U.S. sanctions program related to Somalia targets people engaging in acts threatening the peace, security, or stability of Somalia.

Sectoral sanctions are a form of targeted sanctions directed at a specified sector, or sectors, of a target’s economy. For instance, Executive Order 13662 authorized sanctions targeting certain sectors of the Russian economy, such as the financial services, energy, mining, and defense and related material sectors.

Supplementary sanctions, known as secondary sanctions, target third-party actors doing business with, supporting, or facilitating targeted regimes, persons, and organizations.

License - A license is an authorization from OFAC to engage in a transaction that otherwise would be prohibited. There are two types of licenses: general licenses and specific licenses.

General licenses authorize a particular type of transaction for a class of persons without the need to apply for a license.

Specific licenses are written documents issued by OFAC to a particular person or entity, authorizing a particular transaction in response to a written license application.

Engaging in transactions pursuant to general or specific licenses must strictly observe all conditions of the licenses.

Accountabilities

Research Security and Compliance:

• Outlines the list of comprehensively sanctioned countries and regions on their website
• Maintains expertise relating to comprehensive and targeted sanctions
• Reviews transactions to confirm if they are subject to the FACR
• Identifies if general licenses are available or if specific licenses are required for proposed activities
• Communicates the conditions of general licenses for proposed activities to applicable parties
• Prepares and submits applications for specific licenses to OFAC after consultation with the Office of General Counsel, the Vice Chancellor for Research, and other relevant University units
• Communicates the status of specific license applications, and, if approved, provides the conditions of the specific licenses for proposed activities
• Investigates suspected or actual violations of the FACR in tandem with the Office of General Counsel and Ethics, Compliance and Audit Services

Accounts Payable Shared Services:

• Reviews the Research Security and Compliance website regularly to stay up-to-date with which locations are comprehensively sanctioned.
• Performs a restricted party screening for new suppliers prior to establishing a new supplier record
• Flags requests for new suppliers that may be subject to comprehensive or sectoral sanctions to Research Security and Compliance for review and approval prior to proceeding with the transaction
• Provides list of current suppliers to Research Security and Compliance for review on an annual basis in order to validate that no suppliers have been missed in the prior year
• Notifies Research Security and Compliance immediately if there is a suspected or actual violation of the FACR or this policy

Additional Details

Related Information

Research Security and Compliance

U.S. Department of the Treasury Sanctions Programs