[33540]
May 18, 2021
TO: AML Compliance Working GroupChief 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: China EO 13959: OFAC Issues General License 1B
On May 18, the Office of Foreign Assets Control (OFAC) issued General License 1B "Authorizing Transactions Involving Securities of Certain Communist Chinese Military Companies"[1] with respect to Executive Order 13959 of November 12, 2020, Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies, as Amended.[2]
General License 1B extends the authorization to transact in securities related to non-listed subsidiaries of Communist Chinese Military Companies (CCMCs) with a closely matching name of a listed CCMC until June 11, 2021. This authorization was set to expire on May 27 under General License 1A. This means that there is no need to restrict securities related to entities that may have been identified on various lists as being "closely matching" subsidiaries until June 11, 2021.
Eva M. Mykolenko
Associate Chief Counsel - Securities Regulation
endnotes
[1] General License 1B is available at https://home.treasury.gov/system/files/126/ccmc_gl1b.pdf.
[2] Executive Order 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/.