Sanctions Watch | Weekly Vol. 117

Sanctions Watch Vol 117

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

1. U.S. Treasury Department Issues General License No. 10 Authorizing Wind Down of Transactions with Blocked Entities

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 10, allowing a temporary wind-down period for transactions involving certain blocked entities. This license specifically authorizes transactions that are “ordinarily incident and necessary” to the winding down of activities related to four designated entities: Al Haq Law in the Service of Mankind, Al Mezan Center for Human Rights, Palestinian Centre for Human Rights, and any entity with a 50% or greater ownership by these groups.

Any payments to blocked persons must be directed to a blocked interest-bearing account located in the United States, as per the International Criminal Court-Related Sanctions Regulations (ICCSR). However, this license does not permit transactions with other blocked persons outside of those specified, unless separately authorized.

This decision reflects the ongoing U.S. sanctions policy concerning entities and individuals associated with international criminal activity, with the aim of providing a limited period to cease certain operations while ensuring compliance with U.S. regulations. The license’s expiration date underscores the temporary nature of the allowed transactions.

2. UK Financial Sanctions Licence Revoked for Evraz North America Subsidiaries

The UK HM Treasury revoked the general licence (INT/2022/1710676) that had previously allowed certain business operations for Evraz North America subsidiaries under the Russia (Sanctions) (EU Exit) Regulations 2019. The licence, which took effect from May 2022, permitted payments and other financial transactions related to audit services, as well as operations with third parties.

The licence, which was crucial in ensuring Evraz’s North American subsidiaries could continue conducting business, had been extended and amended several times over the years. However, the revocation means that Evraz North America will no longer be permitted to process payments or engage in other business activities that were previously covered under the UK financial sanctions regime.

This move is part of the ongoing efforts by the UK government to enforce its sanctions on Russian entities, tightening control over companies that may have had indirect connections to Russian interests. The revocation is a significant update in the UK’s stance on Russia-related financial activities, signaling the government’s increasing scrutiny of entities with potential ties to sanctioned regions or parties. The licence was initially set to expire in 2025 but was revoked before its expiration date.

3. UK publishes sanctions statistics in 2nd Economic Crime Plan progress report

The UK Home Office released its outcomes progress report on Economic Crime Plan 2 (ECP2), first published in March 2023. The report outlines key insights from the framework monitoring how public and private sectors are tackling economic crime, strengthening national security, and promoting economic growth.

Significant progress is noted, including a 36% rise in money laundering prosecutions and a 7% increase in convictions for the year ending December 2024. Suspicious Activity Reports (SARs) contributed to asset recovery worth £230.4 million in the financial year 2023. Meanwhile, fraud offences surged by 31%, with 4.16 million fraud cases estimated for the year ending March 2025. The report also highlights a 16% decrease in financial sanctions breaches in 2024, with 396 cases recorded.

However, challenges remain in fully assessing the overall impact of ECP2 due to data limitations. A key area for improvement is further development in data collection methods to refine outcome measurements. Work is underway, including the Home Office’s 2024 Economic Crime Survey, which will provide insights into businesses’ handling of money laundering and fraud risks, as well as confidence in sanctions compliance.

4. Viet Nam Reaffirms Call to End Unilateral Embargoes and Sanctions Against Cuba

During a summit in Hanoi, General Secretary of the Communist Party of Vietnam (CPV) Nguyen Phu Trong reiterated Vietnam’s call for an end to unilateral embargoes and sanctions imposed on Cuba. He made the statement while hosting First Secretary of the Communist Party of Cuba (CPC) Central Committee and President of Cuba Miguel Díaz-Canel Bermúdez, who was in Viet Nam for a state visit and to attend celebrations marking the country’s 80th National Day.

The leaders reviewed domestic developments in their respective nations and reaffirmed the importance of their long-standing solidarity, forged over decades of shared struggles. To Lam underscored the symbolic importance of this visit, coinciding with the Viet Nam–Cuba Friendship Year, and highlighted Cuba’s historic support during Viet Nam’s national liberation and reconstruction.

Both sides agreed to deepen bilateral cooperation across strategic sectors, including agriculture, biotechnology, pharmaceuticals, renewable energy, and food security. Cuba pledged to facilitate Vietnamese investment, particularly in rice and agricultural projects aimed at bolstering its domestic food supply. The leaders also promoted joint ventures in pharmaceutical production and technology transfer.

Beyond economics, the two parties emphasized collaboration in defence, security, science, education, culture, and people-to-people exchanges. They stressed the need to strengthen political trust, maintain high-level exchanges, and share experiences in socio-economic reforms and Party building ahead of their respective congresses in 2026.

In a strong display of solidarity, Viet Nam announced that nearly two million citizens had contributed VND400 billion (US$15.18 million) in a nationwide fundraising campaign to support the Cuban people. Both leaders reaffirmed their commitment to international coordination, mutual support in multilateral forums, and the peaceful settlement of sovereignty disputes under international law.

This meeting further reinforced the “special traditional friendship” between the two nations, grounded in political trust, solidarity, and shared aspirations for sustainable development.

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.