{"id":10525,"date":"2023-11-30T13:45:46","date_gmt":"2023-11-30T18:45:46","guid":{"rendered":"https:\/\/charityandsecurity.org\/?p=10525"},"modified":"2023-11-30T13:50:58","modified_gmt":"2023-11-30T18:50:58","slug":"ofac-issues-compliance-communique-guidance-for-the-provision-of-humanitarian-assistance-to-the-palestinian-people","status":"publish","type":"post","link":"https:\/\/charityandsecurity.org\/news\/ofac-issues-compliance-communique-guidance-for-the-provision-of-humanitarian-assistance-to-the-palestinian-people\/","title":{"rendered":"OFAC Issues Compliance Communiqu\u00e9: Guidance for the Provision of Humanitarian Assistance to the Palestinian People"},"content":{"rendered":"
Washington, D.C. – On Nov. 14, 2023, the Office of Foreign Assets Control (OFAC) issued a Compliance Communiqu\u00e9, <\/span>Guidance for the Provision of Humanitarian Assistance to the Palestinian People<\/span><\/i>.<\/span><\/a> The Communiqu\u00e9 states that \u201c[t]he U.S. Department of the Treasury remains committed to denying Hamas access to funds following its heinous terrorist attacks against the people of Israel, while also ensuring legitimate humanitarian aid can continue to flow to the Palestinian people in Gaza.\u201d The purpose of this guidance is to ensure that U.S. sanctions do not obstruct humanitarian assistance in Palestine. The Communiqu\u00e9 encourages donors to continue to donate to trusted organizations to support Palestinians.<\/span><\/p>\n The NGO GLs: <\/b>Found under sections <\/span>594.520<\/b><\/a> of the GTSR and <\/span>597.516<\/b><\/a> of the FTOSR, these authorize transactions that would be prohibited under U.S. sanctions for NGO humanitarian and non-commercial activities. However, despite these authorizations, certain conditions still apply. For instance, these conditions entail that authorizations only apply to transactions and activities with blocked individuals, groups, or organizations under the FTOSR and GTSR that \u201care ordinarily incident and necessary.\u201d The Communiqu\u00e9 lays out the following example: to support civilians in a hospital in Gaza where Hamas is present, NGOs are authorized to give \u201clife-saving medical assistance\u201d.\u00a0<\/span><\/p>\n According to OFAC, U.S. financial institutions \u201c<\/span>may rely on the statements of their customers <\/b>that such transactions are authorized unless they know or have reason to know a transaction is not authorized.\u201d (emphasis added). This language was included to provide assurances to financial sector actors in the <\/span>updated OFAC Compliance Communiqu\u00e9: Guidance for the Provision of Humanitarian Assistance to Syria<\/span><\/a> after the <\/span>Syria GL 23<\/span><\/a> for earthquake relief <\/span>expired<\/span><\/a> in August 2023. C&SN is hopeful that the financial sector similarly can rely on this guidance from OFAC to facilitate transactions for the purposes of humanitarian relief in Gaza without delay.\u00a0<\/span><\/p>\n Further NGO activities that <\/span>are allowed<\/b> include:<\/span><\/p>\n Further NGO activities that <\/span>are not allowed<\/b> include:<\/span><\/p>\n Activities that <\/span>are allowed<\/b> to the West Bank or Gaza include:<\/span><\/p>\n The caveat is all of these authorized items must be \u201cin quantities consistent with personal, non-commercial use.\u201d<\/span><\/p>\n Activities that <\/span>are allowed<\/b> include:<\/span><\/p>\n The Communiqu\u00e9 encourages USG implementing partners to work with their related federal funding agency for further clarifications or questions regarding USG-funded activities and programs.\u00a0\u00a0<\/span><\/p>\n Activities that <\/span>are allowed <\/b>include:<\/span><\/p>\n Activities that <\/span>are not allowed <\/b>include:<\/span><\/p>\n The listed IOs that are authorized by these GLs include:<\/span><\/p>\n The Compliance Communiqu\u00e9 answers a series of questions that cover the following topics:\u00a0<\/span><\/p>\n The NGO GL\u2019s Authorized Activities:<\/span><\/i><\/p>\n Authorized activities under the NGO GLs include transactions with blocked persons for certain non-commercial activities developed by NGOs to benefit civilians, however, these transactions must be \u201cordinarily incident and necessary\u201d. In alignment with the <\/span>baseline GLs<\/span><\/a> the U.S. Department of the Treasury <\/span>implemented<\/span><\/a> in December 2022, these activities include:<\/span><\/p>\n The above categories are also inclusive of clean water and shelter assistance activities and the provision of agriculture-related, health-related, and healthcare services.<\/span><\/p>\n Donations to NGOs in support of humanitarian efforts in Gaza or the West Bank<\/span><\/i><\/p>\n U.S. persons can donate to, and fundraise for, NGOs who provide authorized or permissible assistance in support of humanitarian efforts in Gaza and the West Bank. Donors should take all requisite precautions and undertake due diligence to ensure their funds are reaching their intended beneficiary organizations.\u00a0<\/span><\/p>\n U.S. companies\u2019 provision of goods and services to NGOs conducting humanitarian activities in Gaza or the West Bank<\/span><\/i><\/p>\n U.S. companies can provide goods and services to these NGOs in Gaza or the West Bank, as long the NGOs are not <\/span>blocked persons.<\/span><\/a>\u00a0<\/span><\/p>\n Importation of fuel or gas by NGOs for authorized humanitarian projects in Gaza and West Bank<\/span><\/i><\/p>\n The NGO GLs permit \u201cNGOs to import fuel or gas for authorized humanitarian projects,\u201d so long as the ultimate beneficiary of the provision of fuel or the payment for the purchase of fuel is not to blocked persons such as Hamas.\u00a0<\/span><\/p>\n The transfer of funds to a designated group or blocked person in connection with an activity authorized by the NGO GLs<\/span><\/i><\/p>\n The only authorized transactions with a designated group or blocked person in connection with an activity authorized by the NGO GLs are for the \u201c<\/span>payments for taxes, fees, or import duties, or the purchase or receipt of permits, licenses, or public utility services if ordinarily incident and necessary to activities authorized by these authorizations.<\/b>\u201d These exceptions allow NGOs to operate in areas where terrorist organizations or blocked entities operate and\/or act as the de facto government or controlling authority. All other transactions outside of these exceptions with blocked persons are prohibited.\u00a0<\/span><\/p>\n Interactions with governing institutions in which leading governing officials are blocked persons<\/span><\/i><\/p>\n Simply because a designated or blocked individual has a \u201cleadership role in a governing institution\u201d does not mean the institution itself is blocked as a whole. Therefore, \u201cengaging in a routine interaction with an agency\u201d where a blocked person works in an official capacity is permitted as long as the interaction does not involve the blocked person. This is crucial in the case of Gaza, as members of Hamas have official positions within the governing agencies and institutions here. This guidance from OFAC clarifies that interactions with governing institutions are not fully blocked solely because a member of Hamas works within the agency.\u00a0<\/span><\/p>\n The Charity and Security Network (C&SN) urges donors to continue to donate to trusted organizations, as the narrative that charities are generally susceptible to terrorist financing abuse by terrorist entities has both been <\/span>proven false<\/span><\/a> and <\/span>damaging<\/span><\/a> to charitable work over the years. Unfortunately, this narrative is perpetuated in the Compliance Communiqu\u00e9, which states that \u201c[g]roups such as Hamas raise funds through entities that present themselves outwardly as legitimate charities but are in fact fronts for Hamas\u2019s illicit fundraising, often abusing the goodwill of donors.\u201d This claim should only be made with ample, concrete, and conclusive evidence accompanying it, which OFAC did not provide.\u00a0<\/span><\/p>\n This conclusive evidence is especially important as the <\/span>U.S. Treasury Department<\/span><\/a> itself and the <\/span>Financial Action Task Force<\/span><\/a> (FATF) have both stated publicly and routinely that NPOs historically face little to no risk of terrorist financing abuse. While donors should always strive to be aware of where their donations are going, <\/span>they should not let this false narrative of charity susceptibility prevent them from seeking to provide aid and assistance to innocent civilians in Gaza and the West Bank<\/b>. Charities operating in these crisis areas already conduct stringent and extensive due diligence and risk mitigation measures to prevent aid diversion.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Washington, D.C. – On Nov. 14, 2023, the Office of Foreign Assets Control (OFAC) issued a Compliance Communiqu\u00e9, Guidance for the Provision of Humanitarian Assistance to the Palestinian People. The Communiqu\u00e9 states that \u201c[t]he U.S. […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60,5,71,69,41,72],"tags":[],"yoast_head":"\nKey OFAC Prohibitions and Authorizations Regarding Hamas and the Palestinian Islamic Jihad (PIJ):\u00a0<\/b><\/h3>\n
General Overview<\/i><\/b><\/h5>\n
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NGO Activities:\u00a0<\/i><\/b><\/h5>\n
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Agricultural Commodities, Medicine, and Medical Devices\u00a0<\/i><\/b><\/h5>\n
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U.S. Government (USG) Official Business<\/i><\/b><\/h5>\n
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International Organizations (IOs)<\/i><\/b><\/h5>\n
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Questions & Answers<\/b><\/h3>\n
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False Narratives Surrounding NPOs<\/b><\/h3>\n