Letter to OFAC on Implementation of Executive Order 13959

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January 27, 2021 TO: AML Compliance Working Group
Chief Compliance Officer Committee
Chief Risk Officer Committee
Compliance Advisory Committee
ETF (Exchange-Traded Funds) Committee
ETF Advisory Committee
Global Operations Advisory Committee
ICI Global Investing Subcommittee
ICI Global Regulated Funds Committee
ICI Global Regulated Funds Committee - Asia
Pension Committee
Pension Operations Advisory Committee
Public Communications Committee
SEC Rules Committee
Securities Operations Advisory Committee
Small Funds Committee RE: Letter to OFAC on Implementation of Executive Order 13959

 

On January 22, we sent the attached letter to the Director of the Office of Foreign Assets Control (OFAC), Andrea Gacki, expressing concerns about the implementation of Executive Order 13959 (Order)[1] and requesting that OFAC address the harmful effects of the implementation of the Order related to unlisted subsidiaries of entities publicly listed as Communist Chinese military companies (CCMCs). 

We specifically requested that OFAC take immediate steps to revoke FAQ 864[2] and also make clear that the Order’s prohibitions apply only to entities expressly identified as CCMCs by the Department of Defense or on OFAC’s Non-SDN CCMC List, and that restrictions do not apply to previously unlisted subsidiaries until 60 days from the date of such listing.  We also asked for clarity on the impact of the regulatory freeze announced by President Biden’s administration on the implementation of the Order. 

 

Eva M. Mykolenko
Associate Chief Counsel - Securities Regulation

 

Attachment

endnotes

[1] EO 13959 is available at https://trumpwhitehouse.archives.gov/presidential-actions/executive-order-addressing-threat-securities-investments-finance-communist-chinese-military-companies/, and amendments to it are available at https://trumpwhitehouse.archives.gov/presidential-actions/executive-order-amending-executive-order-13959-addressing-threat-securities-investments-finance-communist-chinese-military-companies/.

[2] The FAQs are available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/topic/5671.