Sanctions Watch | Weekly Vol. 148

Sanctions Watch Vol 148

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

U.S. Treasury Extends Limited Russia Transactions Relief Under General License 13Q Until July 2026

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 13Q under the Russian Harmful Foreign Activities Sanctions Regulations (31 CFR Part 587), replacing the earlier License 13P. Effective April 8, 2026, the license authorizes U.S. persons and entities owned or controlled by them to engage in certain administrative transactions otherwise restricted under Directive 4 of Executive Order 14024. These permitted activities include payment of taxes, fees, and import duties, as well as obtaining permits, licenses, registrations, certifications, and tax refunds, provided such transactions are necessary for maintaining routine operations in the Russian Federation.

The authorization remains valid until 12:01 a.m. EDT on July 9, 2026. However, the license explicitly prohibits debits to accounts held by the Central Bank of the Russian Federation, the National Wealth Fund, or the Ministry of Finance within U.S. financial institutions. It also does not override broader sanctions restrictions, including dealings with blocked persons unless separately authorized.

This measure reflects a calibrated sanctions approach, allowing limited operational continuity for U.S.-linked entities in Russia while maintaining core financial restrictions on key Russian state institutions.The move underscores OFAC’s commitment to tightening enforcement and disrupting increasingly sophisticated sanctions evasion tactics.

U.S. Treasury Proposes GENIUS Act Rule to Strengthen AML and Sanctions Oversight for Stablecoin Issuers

The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), issued a joint proposed rule to implement key provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The proposal establishes a regulatory framework for payment stablecoin issuers (PPSIs), aiming to balance financial innovation with safeguards against illicit finance risks.

Under the GENIUS Act, PPSIs would be classified as financial institutions under the Bank Secrecy Act (BSA), subjecting them to anti-money laundering (AML) compliance obligations. The proposed rule requires these entities to implement robust AML programs and maintain effective sanctions compliance measures aligned with OFAC requirements. These measures are intended to support law enforcement efforts, enhance transparency, and mitigate risks related to money laundering, terrorism financing, and sanctions evasion.

The rule is designed to be proportionate and innovative-friendly, minimizing unnecessary regulatory burdens while ensuring national security protection. Treasury emphasized that the framework supports U.S. leadership in digital financial technology, particularly in the growing payment stablecoin sector. FinCEN and OFAC have invited public comments on the proposed rule, which is expected to be published in the Federal Register, signaling the beginning of a formal rulemaking process.

UK Expands OTSI Licensing Authority to Cover Export of Sanctioned Goods from April 27, 2026

The UK’s Office of Trade Sanctions Implementation (OTSI) announced an expansion of its licensing remit, effective April 27, 2026. Under the new framework, OTSI will assume responsibility for issuing licences for the export of sanctioned goods and related ancillary services to sanctioned destinations. This marks a significant extension of its existing role, which previously focused on licensing standalone services such as professional and business services.

Despite this shift, the Export Control Joint Unit (ECJU) will continue to handle licensing for goods and services subject to both strategic export controls and sanctions, as well as those governed solely by export controls. The application process remains unchanged, with exporters required to submit licence applications via the Department for Business and Trade’s SPIRE platform. OTSI will process relevant applications submitted from April 27 onward, while ECJU will retain jurisdiction over dual-regulated cases.

Where appropriate, OTSI will issue Standard Individual Export Licences (SIELs) through SPIRE, ensuring seamless coordination with HM Revenue & Customs and Border Force to minimize disruption to trade. Exporters seeking licences for standalone services must continue using OTSI’s dedicated online portal.

The update aims to streamline export sanctions licensing, improve clarity on regulatory responsibilities, and enhance compliance efficiency for businesses engaged in international trade.

OFAC Publishes Spanish Translations of Key Venezuela Oil and Gas Licenses

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) published Spanish translations of several Venezuela-related General Licenses and associated Frequently Asked Questions (FAQs) to enhance accessibility and compliance clarity for Spanish-speaking stakeholders.

The translated licenses include General License (GL) 46B, authorizing certain transactions involving Venezuelan-origin oil and petrochemical products; GL 47, permitting the sale of U.S.-origin diluents to Venezuela; GL 48A, allowing the supply of specified goods and services; GL 49A, covering negotiations and entry into contingent contracts for certain investments; and GL 50A, authorizing transactions related to oil and gas sector operations by designated entities.

These licenses form part of the broader U.S. sanctions framework governing Venezuela’s energy sector, outlining conditions under which limited activities—such as trade, services, and investment—may be conducted despite existing restrictions.

In addition, OFAC released Spanish translations of 19 related FAQs that provide interpretative guidance on the scope and application of these authorizations. The translations are explicitly designated for informational purposes only and do not have legal effect, with the original English versions remaining authoritative in case of discrepancies.

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