US OFAC authorises limited transactions with Anco Water Supply under cyber sanctions
Payments and compliance teams may process water-related transactions with Anco Water Supply within OFAC licence scope
Change
US OFAC has issued General License No. 2 authorising transactions with Anco Water Supply Co. Ltd. that are ordinarily incident and necessary to the treatment and distribution of drinking water under the Cyber-Related Sanctions Regulations.
Why it matters
The licence creates a narrow exemption from existing sanctions, allowing specific humanitarian and infrastructure-related transactions while maintaining broader restrictions. Transactions outside the defined scope remain prohibited.
Implications
- — Sanctions screening and payments teams must allow transactions involving Anco Water Supply only where they relate to drinking water treatment or distribution — processing outside this scope risks sanctions violations.
- — Banks must verify transaction purpose and ensure alignment with licence conditions before clearing payments — insufficient validation risks enforcement exposure.
- — Corporate and infrastructure operators may resume limited dealings with the entity for water-related activities — non-compliant transactions remain blocked under existing sanctions.
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