The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a final rule amending the Somalia Sanctions Regulations, 31 C.F.R. Part 551 (“Regulations”) and reissuing them to further implement the April 12, 2010 and July 20, 2012 Somalia-related executive orders. This final rule replaces the regulations that were published in abbreviated form on May 5, 2010 and includes additional interpretive and definitional guidance, general licenses, statements of licensing policy and other regulatory provisions. The rule became effective on April 28, 2021.

The Regulations implement targeted sanctions directed at certain persons who meet the criteria set forth in the Regulations as well as sanctions that may be set forth in the Somalia-related executive orders. These sanctions do not generally prohibit trade with or the provision of banking or other financial services to Somalia but instead apply where the transaction in question involves property or interests in property that are blocked, and prohibit the importation into the United States, directly or indirectly, of charcoal from Somalia. OFAC has also incorporated several new general licenses and made technical edits to others. For example, the Regulations now authorize certain transactions relating to the investment of certain funds, payments for legal services from funds originating outside the United States, official business of the United States government and official activities of international organizations.