Sanctions Watch | Weekly Vol. 164

Sanctions Watch Vol 164

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

OFAC Updates Sanctions Regulations, Streamlines Legal Services Compliance Requirements

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a final rule updating numerous sanctions regulations across the Code of Federal Regulations. The changes primarily modernize OFAC’s website and contact information, correct typographical errors and cross-references, and revise compliance procedures for legal services.

A key amendment affects the Sudan Stabilization Sanctions Regulations, where OFAC replaces the existing reporting requirement for payments related to authorized legal services funded from outside the United States with a recordkeeping requirement. Under the new rule, U.S. persons receiving such payments must retain detailed records for ten years and provide them to OFAC upon request, reducing routine reporting obligations while preserving regulatory oversight.

The updates also standardize references to OFAC’s online resources across dozens of sanctions programs, including those covering Russia, Iran, Belarus, Venezuela, North Korea, and Global Magnitsky sanctions. The rule took effect on July 27, 2026, and is intended to improve administrative efficiency without materially changing the scope of existing U.S. sanctions programs.

OFAC Authorizes Transactions in PDVSA 2020 Bonds Under New General License 5Y

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued Venezuela Sanctions Regulations General License No. 5Y, authorizing, effective September 17, 2026, all transactions related to, financing for, and other dealings in the Petróleos de Venezuela, S.A. (PDVSA) 2020 8.5 Percent Bond that would otherwise be prohibited under Executive Order 13835, as incorporated into the Venezuela Sanctions Regulations (31 CFR Part 591).

The authorization is limited to the specified bond and does not permit transactions or activities otherwise prohibited under the Venezuela Sanctions Regulations or any other sanctions administered under 31 CFR Chapter V. The license became effective on August 3, 2026, and replaces and supersedes General License No. 5X, which had been issued on June 18, 2026. The update provides regulatory clarity for market participants handling transactions involving the designated PDVSA bond while leaving broader Venezuela-related sanctions unchanged.

EU Strengthens Russia Sanctions Coordination with Support from Partner Countries

The European Union announced that Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Moldova, Montenegro, North Macedonia, Norway, and Ukraine have aligned themselves with the EU’s latest restrictive measures concerning Russia. The measures stem from Council Decision (CFSP) 2026/1709, adopted on 13 July 2026, which added 11 individuals and five entities to the EU sanctions list under Decision (CFSP) 2024/1484. By aligning with the decision, these countries committed to ensuring that their national policies conform to the EU’s sanctions framework. The EU welcomed their commitment, underscoring continued international coordination in implementing restrictive measures related to the situation in Russia.

UN Security Council Renews Central African Republic Sanctions Regime Until July 2027

The United Nations Security Council has unanimously adopted Resolution 2827 (2026), extending the sanctions regime targeting non-State armed groups and individuals undermining peace in the Central African Republic (CAR) until 31 July 2027. The resolution also extends the mandate of the UN Panel of Experts supporting the CAR Sanctions Committee until 31 August 2027.

The renewed measures require UN Member States to prevent the direct or indirect supply, sale, or transfer of arms and related materiel to armed groups and associated individuals operating in the CAR. Existing travel bans and assets freeze on designated individuals and entities remain in force.

The Security Council emphasized that the sanctions are aimed at restricting the flow of weapons to armed groups, deterring those responsible for violence and instability, and supporting peace and security efforts. While the Council lifted the arms embargo on the CAR Government in 2024, restrictions continue to apply to armed groups due to persistent security challenges, particularly in border regions.

Council members highlighted recent improvements in governance and security but noted that cross-border arms trafficking continues to fuel armed groups. The CAR government welcomed the renewal and urged all Member States to fully implement the sanctions, stressing that disrupting the broader networks financing and supplying armed groups remains essential for achieving lasting peace and stability.

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