On August 8, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a Guidance for the Provision of Humanitarian Assistance to Syria. Syria is embargoed under U.S. sanctions laws. Among other prohibitions, any U.S. person or entity is prohibited from providing goods, services, or funds to anyone in Syria and from receiving goods, services, or funds from anyone in Syria. There are, however, various humanitarian exceptions to these sweeping prohibitions. The new Guidance gathers and presents the exceptions in Q&A format. Some exceptions apply to the United Nations and related international organizations. Others apply to the U.S. Government and its agencies. Still, others apply to U.S. persons and entities in the private sector.
In the latter category, subject to the specific provisions of OFAC’s general licenses, the following activities may be permitted:
- Donating funds to, or raising funds for, U.S. or third-country NGOs that provide authorized humanitarian assistance in Syria.
- Raising funds for humanitarian relief in Syria through crowdfunding.
- Engaging in humanitarian activities in Syria, including in areas controlled by the Assad government.
- Disaster relief activities within any of the following five categories: (i) humanitarian projects that meet basic human needs; (ii) democracy-building; (iii) education; (iv) non-commercial development projects directly benefiting the Syrian people; and (v) preservation and protection of cultural heritage sites. These categories include provision of healthcare and health-related services; provision of agricultural-related services; activities related to shelter and settlement assistance; and clean water assistance.
Importantly, U.S. depository institutions, U.S. registered brokers or dealers in securities, and U.S. registered money transmitters are permitted to process transactions related to authorized humanitarian assistance. They may rely on the statements of customers that transactions are authorized unless they know or have reason to know a transaction is not authorized.
In addition, these U.S. financial institutions and service providers may process noncommercial, personal remittances by U.S. persons to family members in Syria, subject to certain conditions, which include (a) that the transfers may not involve the Government of Syria or any person on OFAC's List of Specially Designated Nationals and Blocked Persons, and (b) that the remittances do not include charitable donations for the benefit of any entity, or funds used to support or operate a business, including a family-owned business. The remittances may be in the form of digital payments, instant payments, or made through online platforms and services. Again, financial institutions and service providers may rely on the statements of customers that transactions are authorized unless they know or have reason to know a transaction is not authorized.
Certain transactions related to humanitarian efforts in Syria that involve the Government of Syria are authorized if they are "ordinarily incident and necessary to" humanitarian efforts in Syria. Payment of taxes, tolls, and fees to the Government of Syria in connection with humanitarian efforts may be authorized as well.
In the non-regime held areas of northeast and northwest Syria, U.S. persons may engage in certain activities in the following economic sectors: agriculture, information and telecommunications, power grid infrastructure, construction, finance, clean energy, transportation and warehousing, water and waste management, health services, education, manufacturing, and trade.
The Guidance concludes with the information that "OFAC prioritizes specific license applications and requests for guidance related to humanitarian activity."
In addition to OFAC’s prohibitions and exceptions, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) regulates exports and reexports of U.S.-origin goods, including software. The Guidance notes that most foods and medicines do not require a BIS license for export to Syria but that exportation of other U.S.-origin items, or non-U.S. origin items with more than 10 percent U.S.-origin content, may require a BIS license or other authorization.
In sum, the humanitarian exceptions to the U.S. embargo on Syria are diverse and complex. There are opportunities for U.S. companies to capitalize on these exceptions, but the rules and regulations are fraught with pitfalls. Experienced sanctions counsel should be consulted before venturing into this high-risk environment.
