US OFAC designates Nicaraguan officials and firms; issues General License 5 for Exportadora de Metales
Bank compliance teams must block transactions with newly SDN-listed Nicaraguan parties
Change
US OFAC added multiple Nicaraguan government officials and regime-linked gold firms to its Specially Designated Nationals list and issued Nicaragua-related General License 5 to authorize a narrow wind-down of transactions involving Exportadora de Metales Sociedad Anonima.
Why it matters
US persons and US-based entities are prohibited from engaging in dealings with the newly designated individuals and entities unless an express authorization applies. General License 5 provides a limited, wind-down-only authorization for transactions with Exportadora de Metales Sociedad Anonima and requires affirmative screening and documented reliance to qualify.
Implications
- — US bank compliance teams and correspondent banks — must block and reject any inbound or outbound transactions involving the newly SDN-listed Nicaraguan individuals and entities immediately — affected funds will be blocked and may be seized or otherwise subject to US sanctions enforcement.
- — Trade finance teams at commodity traders and precious-metals purchasers with open contracts or letters of credit tied to Exportadora de Metales Sociedad Anonima — must suspend non-wind-down payments and obtain documented reliance on General License 5 before remitting funds now — payments not authorized under General License 5 will be blocked and can expose the firm to sanctions enforcement.
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Source
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