OFAC Issues New Libya General Licenses 7A (Replaces GL 7) and 8
On September 19, 2011, the Office of Foreign Assets Control issued General License No. 7A and General License No. 8 pursuant to the Libyan Sanctions Regulations and Executive Order 13566 of February 25, 2011, "Blocking Property and Prohibiting Certain Transactions Related to Libya."
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The General Licenses ease certain restrictions against Libyan government officials and entities imposed in February 2011 and codified in July.1
General License No. 7A Replaces No. 7, Further Unblocks Transactions with NOC
Consistent with the United Nations Security Council resolution (UNSCR) adopted on September 16, 2011, OFAC states that General License No. 7A replaces and supersedes General License No. 7 (dated September 9, 2011) and authorizes U.S. persons to engage in all transactions involving the Libyan National Oil Corporation (NOC) or entities owned or controlled by the NOC, provided that such transactions do not involve any other persons whose property and interests in property are blocked.
Subject to a requirement to report to OFAC on the release of any blocked funds, including cash and securities, General License No. 7A unblocks all property and interests in property of the NOC and entities owned or controlled by the NOC.
(General License No. 7, issued on September 9, 2011, was similar but more limited. It had authorized U.S. persons to engage in any transactions involving entities owned or controlled by the NOC, with the exception of Zueitina Oil Company, provided that such transactions did not involve the NOC itself or any other persons whose property and interests in property are blocked. See ITT’s Online Archives or 09/09/11 news, 11090956, for BP summary.)
General License No. 8 Authorizes Transactions with Libyan Gov't with Certain Conditions
Also consistent with the UNSCR, General License No. 8 authorizes U.S. persons to engage in all transactions involving the Government of Libya, its agencies, instrumentalities, and controlled entities, and the Central Bank of Libya, provided that (1) all property and interests in property, blocked pursuant to E.O. 13566 or the Libyan Sanctions Regulations as of September 19, 2011, remain blocked (except as provided in General License No. 7A); and (2) the transactions do not involve any persons listed on the Annex to General License No. 8. OFAC states that General License No. 8 supersedes the authorization in General License No. 1B (Authorizing Transactions Related to Third-Country Libyan-Owned or Controlled Banks), dated June 21, 2011.
1In February 2011, the President issued EO 13566 which blocked the property and interests in property of Libyan Government leaders and suspended all existing licenses and other approvals for the export of defense articles and services to Libya. In July, OFAC issued a final rule to add “the Libyan Sanctions Regulations” under new 31 CFR Part 570 to codify EO 13566.
(See ITT’s Online Archives or 02/28/11 and 07/01/11 news, 11022702 and 11070110, for BP summaries of EO 13566 and OFAC’s final rule codifying it.)