Today the United States Department of the Treasury Office of Foreign Assets Control (OFAC) targeted a number of individuals and entities for designation on OFAC’s SDN List. Those designations were made pursuant to the Global Terrorism Sanctions Regulations.

These designations were made in an effort to target the financial and support networks of al-Qa’ida, the Taliban and the Haqqani Network. As such, two Afghan individuals, Said Jan ‘Abd Al-Salam and Khalil Al-Rahman Haqqani, were designated as Specially Designated Global Terrorists (SDGTs). This designation prohibits U.S. persons from engaging in any transactions with these individuals. In addition, any assets held by these individuals which was under U.S. jurisdiction at the time of the designation are now frozen.

According to OFAC, Al-Salam provided thousands of dollars to the Taliban in 2007 and 2008. Moreover, he is alleged to have hosted individuals seeking to participate in weapons training and al-Qa’ida indoctrination.

Khalil Al-Rahman Haqqani, on the other hand, is believed to be a senior member of the Haqqani Network, where he facilitates fundraising activities on behalf of the Taliban, in addition to providing support to the Taliban in Afghanistan. He is also believed to have taken orders relating to Taliban operations from his nephew Sirajuddin Haqqani, who is also on the OFAC SDN List.

The U.S. government believes that the Haqqani Network is a Taliban-affiliated group staging operations from Pakistan. Khalil Haqqani is thought to be a fundraiser for the Haqqani Network, travelling internationally to obtain financial supporters. According to OFAC, Khalil Haqqani has obtained financial support for the Haqqani Network from donors in the United Arab Emirates, Pakistan, Saudi Arabia, Iran and China.

The OFAC SDN List designation is very tough on its targets. In addition to the prohibitions on U.S. persons and the blocking of U.S. assets, many foreign banks, business, and individuals will refuse to transact with SDNs. As such, those parties designated will be financially suffocated regardless of their lack of dealings or affiliations with the U.S. This type of isolation is becoming more and more common as OFAC increases enforcement of its sanctions programs. For years those SDNTKs designated under the Foreign Narcotics Kingpin Sanctions Regulations referred to the designation as a “civil death.” Nowadays this is becoming the reality for all those placed on the OFAC SDN List, not just those designated as Kingpins.

There are procedures in place, however, to begin the process of OFAC SDN List Removal. Last weekend I wrote my Top 5 Keys to OFAC SDN List Removal. Any attorney who has been through the removal process should know these keys and be able to effectively have someone removed from the OFAC SDN List.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.