OFAC Issues General License under Russian Sanctions Regulations for Closing Personal Accounts

OFAC issued a new General License that authorizes transactions ordinarily incident and necessary to the closing of personal accounts at financial institutions that are blocked pursuant to EO 14024 ("Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation").

The General License - GL No. 50, issued under the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR Part 587 - authorized actions necessary to the closing of an account of an individual, who is not a blocked person, held at a financial institution blocked pursuant to EO 14024. This includes unblocking and lump sum transfers to an account of the account holder held at a permitted financial institution.

The General License did not authorize transactions relating to (i) maintaining of a correspondent account or payable-through account for any blocked entity, (ii) transactions prohibited by Directive 4 under EO 14024 and (iii) transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations.