OFAC Adds Five Chinese Companies to Intellectual Property Sanctions List
OFAC has added five China-based companies to its intellectual property sanctions list, accompanied by asset freezes and restrictions on U.S. financing and investment.
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) added five China-based companies to the Non-SDN Menu-Based Sanctions List under the Protecting American Intellectual Property Act of 2022 (PAIPA).
The targeted companies include management firm Miracle Plus and two of its RMB-denominated funds, in addition to Shanghai Zhisuan Technology Co Ltd, according to the office's announcement.
The sanctions impose asset freezes, restrict the companies from securing loans from U.S. financial institutions exceeding $10 million in any 12-month period, and prohibit U.S. persons from investing in significant equity or debt in them.
The office issued two general licenses, one of which allows for the wind-down of transactions with the listed companies, providing affected parties a timeframe to end their business dealings.
What Do These Terms Mean?
Non-SDN Menu-Based Sanctions List: A U.S. list detailing entities subject to specific sanctions short of a comprehensive prohibition on all transactions.
General License: An authorization issued by a regulatory body allowing specific activities or transactions that would otherwise be prohibited, usually for a transition period.
Asset Freeze: A prohibition on dealing with assets owned by a targeted entity within U.S. jurisdiction.
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