September 26, 2020

Volume X, Number 270

September 25, 2020

Subscribe to Latest Legal News and Analysis

September 24, 2020

Subscribe to Latest Legal News and Analysis

September 23, 2020

Subscribe to Latest Legal News and Analysis

OFAC Designates Leaders of Opposing Forces in South Sudan

Four years ago today, the Republic of South Sudan became the newest independent state. South Sudan has suffered from tragic internecine violence since gaining its independence. Both the United Nations and the United States have implemented sanctions in response to this internal conflict.

On July 2, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added two individuals to the List of Specially Designated Nationals (SDN List) pursuant to Executive Order 13664 for threatening the peace, security, or stability of South Sudan, interfering with the ongoing peace process, and for being leaders of groups responsible for the same malfeasance. The OFAC press release for these designations identifies Gabriel Jok Riak as a commander of the South Sudanese military, responsible for grave human rights abuses. OFAC describes Simon Gatwech Dual as the Chief of General Staff of the Sudan People’s Liberation Movement/Army in Opposition, responsible for attacks against civilians and government forces.

In contradistinction with the comprehensive Sudan-related sanctions program, the South Sudan-related sanctions are list-based. The prohibitions under this program are therefore limited to the individuals and entities on the SDN List, including entities owned 50 percent or greater by these designees, pursuant to the so-called “50 Percent Rule.”

The nature of the conflict and OFAC’s willingness to target opposing forces in the civil war means that U.S. businesses must use enhanced due diligence in all dealings with South Sudan.  It is imperative to not only identify all the parties involved, but also avoid any transaction that may benefit SDNs.

Copyright Holland & Hart LLP 1995-2020.National Law Review, Volume V, Number 202


About this Author

Jeremy Paner, Economic, Trade Sanctions Attorney, HOlland Hart Law Firm
Of Counsel

Mr. Paner is Of Counsel at Holland & Hart's Washington, DC office. His practice focuses on economic and trade sanctions compliance issues, in addition to general white collar criminal and regulatory investigations. Mr. Paner leverages his sophisticated governmental experience to deliver valuable risk analysis and compliance and avoidance advice to private clients.

Prior to joining Holland & Hart, Mr. Paner was the New York State Department of Financial Services appointed independent economic sanctions monitor of a major international...