It may come as a surprise to those who do not follow the issue closely that there is a longstanding link between rap music and U.S. economic sanctions administered by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). Whether it was the late al-Shabaab lyricist Omar Hammami’s 2011 designation or the brouhaha over Jay-Z’s Cuba travels, the U.S. agencies responsible for implementing and enforcing economic sanctions are no strangers to the rap game. Therefore, it makes sense that this week the State Department would designate German rapper-turned-jihadi Denis Mamadou Cuspert, a.k.a. “Deso Dogg” pursuant to Executive Order 13224.

At this time, State has not yet issued a press release on the designation. But it appears Mr. Dogg, who reportedly has “STR8 THUG” tattooed on his hands, has come a long way from touring with DMX. According to media reports, Cuspert, who now goes by the nom-de-guerre Abu Talha Al Almani (“Abu Talha the German”), has left his music career behind and is said to be running Al Hayat Media Center—ISIS’s propaganda outfit. The Daily Mirror suggests that he is behind the ISIS beheading videos of British aid workers David Haines and Alan Henning.

While the designation of an alleged jihadi propagandist in Syria does not normally raise particularly difficult compliance issues, Cuspert’s rap career makes his case very different.

In his former life as Deso Dogg, Cuspert released four albums, including one with a major British record label. A quick search reveals that his music is currently available for download on iTunes and on Spotify as part of German rap compilations. It follows that for each album purchase, download, or stream, some small percentage of the royalties are owed to Cuspert. Any U.S. person, such as Apple or Spotify, which provide services to, or paid royalties to a 13224-designated individual, would be in violation of the International Emergency Economic Powers Act (“IEEPA”). A strict reading of the regulation would require a fine of up to $250,000 for each transaction, i.e. each download or stream.

Now under IEEPA, the President is prohibited from regulating “the importation from any country, or the exportation to any country, whether commercial or otherwise, regardless of format or medium of transmission, of any information or informational materials.” So any individual who downloads or listens to his music is not engaged in a violation, as they are engaging in an importation of informational materials which is pre-existing in nature. On the other hand, given the scope of the distribution services they provide, Spotify and Apple are unlikely to fall within the exemption.

It’s quite unlikely that OFAC would penalize Apple or Spotify immediately, but these and other companies would be well served to quickly investigate whether any money is due to Cuspert from downloads, and removing his music entirely from their sites would probably be the wisest move from a compliance standpoint. Likewise, any money of Cuspert’s subject to U.S. jurisdiction is now blocked; banks should make sure that any accounts held on behalf of Cuspert are blocked immediately and OFAC is notified.

No word yet on whether Snoop Dogg is having trouble with his bank accounts due to similarities between his and Cuspert’s name and occupation, but we’ll keep you posted.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC matters. This post was written by Samuel Cutler, Policy Advisor at Ferrari & Associates, P.C. If you have any questions please contact them at 202-280-6370 or ferrari@ferrariassociatespc.com or cutler@ferrariassociatespc.com.