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Proposed regulations would support Tribal Nations in providing general welfare for Tribal communities  

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking (NPRM) to implement section 139E of the Internal Revenue Code, created by the Tribal General Welfare Exclusion Act of 2014 (Act).  

The Act enables Tribal governments to provide non-taxable assistance and benefits to Tribal members that are excludable from their gross income for federal income tax purposes. The announcement today supports Tribal Nations in advancing the wellbeing of their communities by the provision of general welfare support that ranges from housing aid to restoration of Native language. These proposed rules would provide that gross income does not include the value of any Indian general welfare benefit paid to or on behalf of a Tribal citizen of a Tribal Nation.

The proposed rules demonstrate an unprecedented recognition of Tribal self-determination and self-governance in tax regulations by providing deference to Tribes in how they establish their programs, the scope of benefits they provide, and determinations involving Tribal culture or ceremonial activities. These principles are the foundation of the Biden-Harris Administration’s recognition of the unique federal trust and treaty responsibility towards Tribal Nations as referenced in Presidential Executive Order 14112.

These proposed rules were the result of a historic level of three pre-regulation consultations with Tribal Nations and multi-year consultation with the Treasury Tribal Advisory Committee in partnership with Treasury’s Office of Tribal and Native Affairs, Office of Tax Policy, and the Internal Revenue Service. 

“The Biden-Harris Administration has provided historic support to Tribal Nations and today’s announcement will provide clarity and certainty that is critical to economic opportunity,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “These proposed rules recognize that Tribal Nations know best how to serve their citizens and demonstrate the Biden-Harris Administration’s commitment to ensuring the voices of Tribal leaders are at the table.”   

“The provision of general welfare is core to indigenous customs and practices and today’s rule incorporates respect for these values in our tax regulations” said U.S. Treasurer, Chief Lynn Malerba. “Treasury’s investment in its consultative process, and the expertise of the TTAC, were critical to improving the Department’s understanding of Tribal needs to support Tribal Nations. I want to thank Treasury’s Office of Tribal and Native Affairs, Office of Tax Policy, and the IRS for working collaboratively with all the offices within Treasury who worked diligently to draft and release this proposed rule.”

A decade ago, Congress passed the Tribal General Welfare Exclusion Act of 2014 to provide an expanded general welfare exclusion specifically for Tribal programs that improved upon the historical administrative general welfare exclusion. The Act also created the Treasury Tribal Advisory Committee to advise the Secretary on Tribal tax matters, and provided for audit suspensions on the Act’s enforcement until IRS field agents and Tribal Financial officers were trained on regulations.

Today’s proposed regulations build upon Treasury’s historic investment in developing policies that include feedback of Tribal governments. In response to input from Tribes, this Administration created Treasury’s first Office of Tribal and Native Affairs under the first Native American Treasurer, former TTAC member Chief Malerba. This Office has worked across the Department to support the administration of $30 billion in recovery set asides to Tribal Nations and support for Tribal access to the billions in clean energy tax credits through the Inflation Reduction Act, including through elective pay which enables Tribes to access certain clean energy tax credits for the first time. 

Treasury is commencing Tribal consultation on these proposed regulations and looks forward to Tribal feedback. To learn more about this rule, see the Dear Tribal Leader Letter, Consultation and Federal Feedback Summary, and Tribal Fact Sheet. 

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Minimum tax estimated to generate more than $250 billion from the most profitable companies over next 10 years and $20 billion in 2025; 60% of corporations that pay the tax would otherwise have an effective federal tax rate of 1% or less.   

WASHINGTON – Today the U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking (NPRM) to increase tax fairness and address significant corporate tax avoidance by some of the largest and most profitable U.S. corporations by implementing the Inflation Reduction Act’s Corporate Alternative Minimum Tax (CAMT). CAMT is a key plank of President Biden and Vice President Harris’s agenda to make the biggest corporations and wealthiest pay their fair share, while cutting taxes for working Americans and middle-class families and supporting small businesses and entrepreneurs.

Treasury estimates that around 100 of the largest and most profitable companies will pay the CAMT annually. These corporations would have otherwise paid an average effective federal tax rate of 2.6%. An estimated 60% of CAMT payers would otherwise have paid an effective tax rate of less than 1%, including 25% of payers that would have paid an effective tax rate of zero.

That’s because some of the largest and most profitable corporations in the country use tax preferences and aggressive planning strategies to pay little to no taxes. These corporations report record profits to shareholders while often paying lower tax rates than nurses, firefighters, police officers, and teachers. Their ability to use complex strategies to avoid tax also gives them an unfair competitive advantage over small businesses, which don’t have access to the same tax planning techniques and high-paid lawyers and accountants. The CAMT helps level the playing field for small businesses by imposing a minimum tax on the profits that the largest corporations report to their shareholders.

Treasury’s NPRM would implement the statutory requirement that the biggest corporations pay a minimum 15% tax on profits reported to shareholders, with certain adjustments, to increase tax fairness and generate an estimated $250 billion over the next 10 years (2025-2034), including $20 billion in 2025.

The CAMT only applies to large corporations that average more than $1 billion in profit per year, not $1 billion in sales. In addition, if these corporations pay regular taxes that equal or exceed 15% of their adjusted profits, they would pay no additional tax. CAMT is designed as a backstop to ensure there are not years where the most profitable corporations in the world are paying minimal taxes.

“The proposed rules released by Treasury today are an important step toward realizing Congress’ efforts to address the most egregious U.S. corporate tax avoidance and ensure the largest and most profitable corporations in the country cannot pay little to no taxes,” said U.S. Secretary of the Treasury Janet L. Yellen. “The Corporate Alternative Minimum Tax will also help level the playing field for small businesses while generating hundreds of billions of dollars in revenue.”  

Crafting the rules to implement this tax has been one of the most significant projects the Treasury Department has undertaken in decades. Congress delegated a significant amount of authority to Treasury to implement the CAMT, and Treasury and the IRS are implementing the law via these proposed regulations consistent with Congress’s statutory direction and intent.

In particular, as part of the legislative process, Congress chose to retain only a small number of regular tax preferences for the purpose of the minimum tax. The proposed rules follow suit and generally do not create adjustments to the tax base other than those directed by Congress. Consistent with the four notices Treasury previously issued to give taxpayers early clarity, the NPRM addresses limited and targeted cases where adjustments are clearly needed to accomplish congressional intent. For example, it addresses situations involving bankrupt and other troubled companies so that these companies can emerge from bankruptcy and continue to operate and employ their workers.

Today’s guidance is a proposed rule. All stakeholders will have the opportunity to comment on the proposed regulations by December 12, 2024 and may request to speak at the public hearing on the proposed regulations scheduled for January 16, 2025. Treasury and the IRS will carefully consider all comments that we receive on the proposed regulations and make changes based on those comments as appropriate.    

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WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 16 Maduro-aligned officials who obstructed a competitive and inclusive presidential election process in Venezuela and violated the civil and human rights of the people. The individuals sanctioned today pursuant to Executive Order (E.O.) 13692, as amended, include leaders of the Maduro-aligned National Electoral Council (CNE) and the Supreme Tribunal of Justice (TSJ) who impeded a transparent electoral process and the release of accurate election results, as well as the military, intelligence, and government officials responsible for intensifying repression through intimidation, indiscriminate detentions, and censorship. The officials were appointed by Nicolas Maduro, whom OFAC sanctioned in 2017.

“Today, the United States is taking decisive action against Maduro and his representatives for their repression of the Venezuelan people and denial of their citizens’ rights to a free and fair election,” said Deputy Secretary of the Treasury Wally Adeyemo. “The Treasury Department is targeting key officials involved in Maduro’s fraudulent and illegitimate claims of victory and his brutal crackdown on free expression following the election, as the overwhelming majority of Venezuelans call for change. The Biden-Harris Administration will continue to use our tools to hold Maduro and his cronies accountable and support the democratic aspirations of the Venezuelan people.”                                                                                                                

Since the July 28 election, Maduro and his representatives have indiscriminately arrested Venezuelans for exercising their political and civil rights and deployed a range of intimidation tactics to silence the opposition. These acts, including the issuance of an arrest warrant for the successful presidential candidate, Edmundo Gonzalez Urrutia (Gonzalez), which forced him to depart Venezuela to seek asylum in Spain. 

Concurrently, the Department of State imposed new visa restrictions under Presidential Proclamation 9931 on Maduro-aligned officials who have undermined the electoral process in Venezuela and are responsible for acts of repression. With these newly imposed visa restrictions, nearly 2,000 individuals have been subject to visa restrictions for their role in undermining democracy, significant corruption, and human rights violations. 

DESIGNATED Venezuelan officials

The following individuals who obstructed democratic political participation and undermined the election process were designated today pursuant to E.O. 13692, “Blocking Property and Suspending Entry of Certain Persons Contributing to the Situation in Venezuela,” as amended, for being current or former officials of the GOV.

Inocencio Antonio Figueroa Arizaleta (Figueroa)is a judge serving in the Maduro-aligned TSJ since 2014, currently in the TSJ’s Constitutional Chamber. Previously, he served as magistrate of the TSJ’s Political-Administrative Chamber, according to multiple press reports.

Additionally, according to media coverage, in his capacity as a TSJ judge, Figueroa supported the Electoral Chamber’s decision to review and certify the CNE’s claim that Maduro won the election. Figueroa participated in the TSJ’s expert technical review at the CNE, and he was involved in summoning presidential candidates and political party leaders to the TSJ as part of the Maduro-backed electoral review process. In 2019, Canada sanctioned Figueroa for undermining democracy.

Malaquias Gil Rodriguez (Gil) is a judge serving as the president of TSJ’s Political-Administrative chamber since 2022. Previously, he served as the vice president of the TSJ’s Electoral Chamber; he has held a position in the judiciary since 2010. 

Additionally, according to credible media sources, Gil has obstructed democracy by disqualifying Machado’s presidential candidacy. In 2018, Canada sanctioned Gil for corruption and violation of human rights.

Juan Carlos Hidalgo Pandares (Hidalgo)is a judge serving as a vice president on the TSJ’s Political-Administrative chamber since 2022. Previously, Hidalgo served as a general of the National Bolivarian Guard and prosecutor general of the military.  

Additionally, according to media sources, Hidalgo has obstructed democracy by disqualifying Machado’s presidential candidacy.

Caryslia Beatriz Rodriguez Rodriguez (Rodriguez) heads the Maduro-aligned TSJ. Rodriguez has been the president of the TSJ since January 2024 and heads the TSJ’s Electoral Chamber. 

Additionally, according to media sources, Rodriguez and the Electoral Chamber certified Maduro’s baseless claim that he had won the election despite well-founded accusations of widespread voter fraud in July’s election.

Fanny Beatriz Marquez Cordero (Marquez) is the vice president of the TSJ and member of the Electoral Chamber.

Marquez was among the officials from the Electoral Chamber who supervised the process of technical appraisal of the evidentiary material submitted by the CNE, political organizations, and former candidates participating in the presidential elections of July 28, 2024. Several news outlets stated Marquez was among the officials from the Electoral Chamber who certified Maduro’s baseless claim to victory.

Edward Miguel Briceno Cisneros (Briceno) is the special judge of the Maduro-aligned First Court of the First Instance with jurisdiction over terrorism.

Additionally, according to media sources, Briceno issued an arrest warrant for Gonzalez less than an hour after the Public Prosecutor’s office requested it for the charges of crimes of usurpation of functions, incitement to disobedience of laws, conspiracy, sabotage to damage systems, and association with opposition members whom Maduro considers criminals.

Luis Ernesto Duenez Reyes (Duenez) is a prosecutor in the Maduro-aligned Public Prosecutor’s office. In his position, Duenez issued the official request for the arrest warrant targeting opposition presidential candidate Edmundo Gonzalez, which was then issued by Briceno.  Gonzalez fled Venezuela into exile to Spain on September 8.

Rosalba Gil Pacheco (Gil Pacheco) is a CNE rector serving since 2023 as president of the Maduro-aligned CNE’s Civil and Electoral Registry Commission. She also served as the secretary of the Maduro-aligned National Assembly since January 2021.

Gil Pacheco, has obstructed democracy by instituting a restrictive new rule for poll watcher eligibility, instituting electoral registration irregularities, and intentionally delaying voting center processes. Also, Gil Pacheco declared Maduro the winner of the presidential election without publishing precinct-level results and without conducting the required audits of the country’s electronic voting system, among other electoral irregularities, according to widely disseminated press reports.  

Antonio Jose Meneses Rodriguez (Meneses)is the CNE Secretary General serving since August 2023. 

Meneses, according to news reports, instituted a restrictive new rule for poll watcher eligibility, introducing electoral registration irregularities, and intentionally delaying voting center processes. Before serving on the CNE, he also signed the document from the Comptroller’s Office upholding Machado’s disqualification. 

Dinorah Yoselin Bustamante Puerta (Bustamante)is a prosecutor serving at the Venezuelan First Special Court of First Instance, an office within the Maduro-aligned Directorate-General of Military Counter-Intelligence (DGCIM). 

Additionally, according to media sources, Bustamante obstructed democracy and the rule of law by initiating politically motivated prosecutions, which resulted in the arbitrary detention of members of the U.S.-recognized 2015 National Assembly and other officials opposed to Maduro. The European Union, United Kingdom, and Switzerland sanctioned Bustamante in 2020 according to sanctions databases.

Pedro Jose Infante Aparicio (Aparicio)serves as the first vice president of the Maduro-aligned National Assembly. He also served as president of the Special Commission for the Investigation and Prosecution of Opposition Parties and Representatives of the 2016-2021 Legislature for the Dispossession and Theft of CITGO as part of the “Bolivarian Fury” campaign launched in January 2024 against the democratic opposition. In that position, the commission subpoenaed several opposition members in seemingly politically motivated prosecutions. 

Domingo Antonio Hernandez Larez (Hernandez) is the Strategic Operational Commander of the Maduro-aligned Bolivarian National Armed Forces (FANB), serving since July 2021. Hernandez previously served as the Commander of Strategic Region for the Integral Defense Capital (REDI Capital). 

Hernandez was denounced by a human rights defender in 2019 as a repressor on behalf of Maduro due to the increase in repression and systematic harassment by intelligence and security agencies recorded in the areas under his control. Additionally, according to various press pieces, FANB has carried out acts of repression against Venezuelans, including arbitrary arrests and threatening those who participate in peaceful protests. 

Elio Ramon Estrada Paredes (Estrada) is the Commander of the Maduro-aligned Bolivarian National Guard (GNB), serving since July 2023. In that position, Estrada leads the Anti-Terrorism Directorate of the GNB that carries out intelligence work to detect and capture those involved in alleged destabilizing plans and other crimes. 

Under Estrada’s command and ahead of the election, the GNB harassed and detained Venezuelans on suspicions of materially supporting Machado on the campaign trail, according to numerous news sources. Estrada led the GNB in arresting thousands of peaceful pro-democracy protestors after the July 28 election.

Johan Alexander Hernandez Larez (Larez) is Commander of REDI Capital of the GNB. Larez was previously the Division General for the Integral Defense Zone in Miranda State, or Zona Operativa de Defensa Integral del Estado Miranda, commonly referenced to as ZODI Miranda State.

Asdrubal Jose Brito Hernandez (Brito) is the Director of Criminal Investigations of the DGCIM. Brito was formerly the counterintelligence director of the presidential detail.

Brito is identified as a torturer in United Nations reporting, and according to multiple press pieces, DGCIM has led a coordinated “Operation Knock Knock” campaign to harass, detain, and arbitrarily arrest opposition and civil society members following the election.

Miguel Antonio Munoz Palacios (Munoz) is the Deputy Director of the Maduro-aligned intelligence service Servicio Bolivariano de Inteligencia (SEBIN) since 2021. 

SEBIN has carried out Maduro’s politically motivated arrests and detentions of opposition leaders, volunteers, poll workers, and election witnesses. Munoz is one of the top leaders of Venezuela’s Pitbull Group, a group consisting of SEBIN personnel from the General Directorate for Military Counterintelligence. The Pitbull Group was tasked to do the “dirty work,” and there were no legal parameters with what they were tasked to do. The Pitbull Group was also believed to be responsible for kidnapping and murders. The group likely kidnapped individuals to pressure them to give the Pitbull Group money. The Pitbull Group used that money for other operational purposes.

PREVIOUS TREASURY ACTIONS TARGETING VENEZUELAN OFFICIALS

Today’s action builds on multiple actions that OFAC has taken to target current or former Venezuelan officials, pursuant to E.O. 13692 as amended, for taking anti-democratic actions and violating human rights.  To date, OFAC has sanctioned over 140 Venezuelan individuals and 100 Venezuelan entities, including:

Key Venezuelan Officials

• Nicolas Maduro Moros – sanctioned since 2017
• Tarek William Saab – sanctioned since 2017
• Jorge Elieser Marquez Monsalve – sanctioned since 2017
• Celia Adela Flores de Maduro – sanctioned since 2018
• Delcy Eloina Rodriguez Gomez – sanctioned since 2018
• Diosdado Cabello Rondon – sanctioned since 2018
• Jose David Cabello Rondon – sanctioned since 2018
• Marleny Josefina Contreras Hernandez – sanctioned since 2018
• Vladimir Padrino Lopez – sanctioned since 2018
• Jorge Jesus Rodriguez Gomez – sanctioned since 2018
• Remigio Ceballos Ichaso – sanctioned since 2019
• Nicolas Ernesto Maduro Guerra – sanctioned since 2019

Key Military and Intelligence Officials

• Gustavo Enrique Gonzalez Lopez – sanctioned since 2015
• Ivan Rafael Hernandez Dala – sanctioned since 2019
• Hildemaro Jose Rodriguez Mucura – sanctioned since 2019
• Rafael Enrique Bastardo Mendoza – sanctioned since 2019

National Electoral Council Officials

• Elvis Eduardo Hidrobo Amoroso – sanctioned since 2017
• Carlos Enrique Quintero Cuevas – sanctioned since 2017
• Conrado Antonio Perez Linares – sanctioned since 2020
• Fabio Enrique Zavarse Pabon – sanctioned since 2018

Supreme Tribunal of Justice Officials and Former Officials

• Gladys Maria Gutierrez Alvarado – sanctioned since 2018
• Maikel Jose Moreno Perez – sanctioned since 2018
• Calixto Antonio Ortega Rios – sanctioned since 2018
• Luis Fernando Damiani Bustillos – sanctioned since 2018
• Arcadio de Jesus Delgado Rosales – sanctioned since 2018
• Carmen Auxiliadora Zuleta de Merchan – sanctioned since 2018
• Lourdes Benicia Suarez Anderson – sanctioned since 2018
• Juan Jose Mendoza Jover – sanctioned since 2018

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. persons may face civil or criminal penalties for violations of E.O. 13692. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals identified today.

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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning Cambodian businessman Ly Yong Phat (Ly), his conglomerate L.Y.P. Group Co., LTD (L.Y.P. Group), and O‑Smach Resort for their role in serious human rights abuse related to the treatment of trafficked workers subjected to forced labor in online scam centers. OFAC is also designating Cambodia-based Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by Ly. 

“Today’s action underscores our commitment to hold accountable those involved in human trafficking and other abuses, while also disrupting their ability to operate investment fraud schemes that target countless unsuspecting individuals, including Americans,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury will continue to shine a light on the criminal networks operating these illicit schemes and those who seek to perpetrate these abuses.”

According to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and its September 2023 alert to U.S. financial institutions and the broader public, confidence scammers leverage fictitious identities and elaborate narratives to develop trusted relationships and deceive the victim. In many cases, this involves convincing victims to invest in virtual currency, or in some cases, over-the-counter foreign exchange schemes, all with the intent of defrauding them of their funds. These scams are largely perpetrated by criminal organizations based in Southeast Asia. The FBI Internet Crime Complaint Center (IC3) has warned of a spike in cryptocurrency investment schemes. IC3 reported that in 2023, losses from investment scams became the most of any crime type they tracked. Investment fraud losses rose from $3.31 billion in 2022 to $4.57 billion in 2023, a 38 percent increase. Within these numbers, investment fraud with a reference to cryptocurrency rose from $2.57 billion in 2022 to $3.96 billion in 2023, an increase of 53 percent. 

Often, the frontline scammers in virtual currency confidence schemes are themselves often victims of trafficking, including forced labor, and are subjected to physical and mental abuse. On June 24, 2024, the Department of State’s Office to Monitor and Combat Trafficking in Persons published its annual Trafficking in Persons Report (TIP Report), which highlights abuses in Cambodia, including in the towns of O’Smach and Ko Kong, in particular. The TIP Report noted ongoing corruption and official complicity in trafficking crimes remained widespread and endemic, resulting in selective and often politically motivated enforcement of laws, inhibiting effective law enforcement action against trafficking crimes, including forced labor in online scam operations. Traffickers force victims to work up to 15 hours a day and, in some cases, “resell” victims to other scam operations or subject them to sex trafficking. 

serious human rights abuse at o-smach resort

O-Smach Resort is owned by L.Y.P. Group, which is owned by Cambodian senator and tycoon Ly Yong Phat (Ly). For more than two years, from 2022 to 2024, O-Smach Resort has been investigated by police and publicly reported on for extensive and systemic serious human rights abuse. Victims reported being lured to O-Smach Resort with false employment opportunities, having their phones and passports confiscated upon arrival, and being forced to work scam operations. People who called for help reported being beaten, abused with electric shocks, made to pay a hefty ransom, or threatened with being sold to other online scam gangs. There have been two reports of victims jumping to their death from buildings within O‑Smach Resort. 

Local authorities have conducted repeated rescue missions at O-Smach Resort, including in October 2022 and March 2024, freeing victims of various nationalities, including Chinese, Indian, Indonesian, Malaysian, Singaporean, Thai, and Vietnamese. 

OFAC is designating Ly, L.Y.P. Group, and O-Smach Resort pursuant to Executive Order (E.O.) 13818 for being foreign persons who are responsible for or complicit in, or have directly or indirectly engaged in, serious human rights abuse. 

OFAC is also designating Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Ly, an individual concurrently designated pursuant to E.O. 13818. 

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. persons may face civil or criminal penalties for violations of E.O. 13818. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

Financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. 

For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

GLOBAL MAGNITSKY

Building upon the Global Magnitsky Human Rights Accountability Act, E.O. 13818 was issued on December 20, 2017, in recognition that the prevalence of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, had reached such scope and gravity as to threaten the stability of international political and economic systems. Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons.

Click here for more information on the individuals and entities designated today.

If you believe you have been the victim of an Internet crime or if you want to file on behalf of another person you believe has been such a victim, you may file a complaint with the Internet Crime Complaint Center (IC3).

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WASHINGTON – The Economic Opportunity Coalition (EOC), launched by Vice President Kamala Harris in July 2022, is a group of more than two dozen companies that have committed to making investments in small business underserved communities to address economic disparities and jumpstart local economic activity. To date, the EOC has announced $1 billion of deposits with Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) through partnerships with private companies. 

Alongside the efforts of the Economic Opportunity Coalition to support underserved communities, the Treasury Department released new data on lending activity by participants of the Emergency Capital Investment Program (ECIP). ECIP was established to support the efforts of community financial institutions to provide financial products and services for low- and moderate-income and underserved communities that disproportionately suffered from the impacts of the pandemic, by providing capital investments in CDFIs and MDIs with track records of serving these markets. 

In about 18 months, ECIP participants originated a total of $58.3 billion in loans, of which more than one third was to individuals and communities that have traditionally lacked access to capital, deemed “Deep Impact Lending.” In addition to Deep Impact Lending in underserved places such as persistent poverty counties, ECIP participants also provided $4.5 billion in capital for small businesses, $1.2 billion in financing for affordable housing, and $2.6 billion in mortgages to minorities and other targeted populations. A list of resources for individuals or small businesses seeking assistance is available on the ECIP website. 

Success Stories of how Public-Private Partnerships are Supporting Communities: 

• First Independence Bank (MDI), Detroit, MI
  • Total ECIP Investment: $45,260,000
  • Kenneth Kelly, Chairman & President: “ECIP funding has been instrumental for First Independence Bank, enabling us to enhance our services and partnerships, growing our assets to nearly $600 million. This support enriches our customers’ financial well-being and strengthens our community.” 
  • Success Story: Through Q2 2024, First Independence Bank provided $316,000 in small business loans and $236,000 in loans to underserved businesses, including East Coast Food Management, which provides high-quality food services to schools and community organizations; Wow Me Web Design, a firm that offers digital marketing solutions to help local businesses thrive online; and Quest Diagnostic Nichols Institute, Inc., a critical provider of diagnostic services that support healthcare in underserved areas. These loans have empowered these businesses to grow and continue serving their communities effectively.
• Asian Bank (CDFI and MDI), Philadelphia, PA
  • Total ECIP Investment: $66,069,000
  • James Wang, President & CEO: “Asian Bank is profoundly grateful for the transformative impact of ECIP and EOC funding, enabling us to expand our reach and positively impact more people in our communities.”
  • Success Story: Asian Bank provided a $75,000 Small Business Booster Loan to a borrower in Kensington, PA. The loan helped preserve a vital food retail store called Manba Mini Market in a majority-minority area with a 33% poverty rate.
• Locus Bank (CDFI), Richmond, VA  
  • Total ECIP Investment: $36,400,000
  • Clyde Cornett, Interim CEO & CFO: “ECIP funding has significantly bolstered Locus Bank’s capital base, enabling us to expand lending in affordable housing and clean energy. With this support, we’ve increased lending by 131% and financed critical community projects.”
  • Success Story: Locus Bank provided a $7.5 million predevelopment line of credit for the Somos at McLean project in Tysons, VA. This project will provide 231 new affordable rental units near essential amenities and transportation.
• M&F Bank (MDI), Durham, NC
  • Total ECIP Investment: $80,000,000
  • James H. Sills III, CEO: “M&F Bank is deeply grateful for EOC’s support, which empowers individuals, businesses, and communities, fostering economic resilience and opportunity.”
  • Success Story: M&F Bank provided $6.5 million in debt financing to an NC-based HBCU, Shaw University. This financing facilitated debt restructuring and improved the university’s financial condition.
• Self-Help Credit Union (CDFI and MDI), Durham, NC
  • Total ECIP Investment: $243,000,000
  • Martin Eakes, CEO: “Treasury’s ECIP investments are transformative, enabling us to double our annual lending and serve more families and businesses.”
  • Success Story: Self-Help Credit Union provided a $796,500 loan to A Safe Place Child Enrichment Center in Southeast Raleigh. This loan enabled the center to acquire and upgrade an existing five-star childcare facility, greatly expanding its capacity. The enhanced facility now integrates traditional education with innovative outdoor experiences, significantly improving educational quality and promoting healthy lifestyles for both children and their families.
• Native American Bank (CDFI and MDI), Denver, CO 
  • Total ECIP Investment: $37,414,000  
  • Tom Ogaard, President & CEO: “The ECIP funding has provided Native American Bank with the capital to provide much larger loans to projects serving Tribal communities.  NAB has deployed much of its ECIP award to provide low-cost construction and permanent financing for on-reservation Tribal Health Facilities.”
  • Success Story: Native American Bank, N.A., a tribally owned, Native CDFI and MDI bank headquartered in Denver, Colorado, closed two loans totaling $10.9 million to finance the expansion of a critical healthcare facility located in Burney, CA. The healthcare facility is located on the reservation and will serve Pit River Tribal members as well as the surrounding rural community. The Indian Health Service funded non-profit facility will expand its family medicine, dental, and behavioral health outpatient services, as well as add optometry and a pharmacy, which will increase service capacity and reduce the need for patients to travel to other areas for providers. The loans were provided in concert with equity from the CDFI Fund’s New Market Tax Credit program as well as grant and loan funding from the USDA’s Community Facilities program. 
• Optus Bank (CDFI and MDI), Columbia, SC
  • Total ECIP Investment: $70,923,000
  • Dominik Mjartan, CEO: “ECIP and EOC investments have enabled Optus Bank to deploy nearly $400 million in loans to underserved communities, significantly increasing our assets and loan originations.”
  • Success Story: Optus Bank supported Dream Team Consulting, a company founded in 2018, in developing a solar farm. By funding the acquisition of 65 acres, the bank facilitated the transition to renewable energy, created local jobs, and fostered economic growth. This partnership highlights Optus Bank’s commitment to impactful and innovative investments that benefit both the environment and underserved communities.
• Southern Bancorp (CDFI), Arkadelphia, AR
  • Total ECIP Investment: $250,000,000
  • Darrin Williams, CEO: “ECIP’s impact is both transformational and generational, allowing us to scale our work, reach underserved communities, and lay a stronger financial foundation for future generations.”
  • Success Story: In March 2024, Southern Bancorp helped an African-American first-time homebuyer in Memphis secure a mortgage. Over several months, the bank assisted in rebuilding his credit from 620 to 700 and helped him save for a down payment and closing costs. This support enabled him to achieve homeownership, providing stability for him and his elderly mother and advancing his financial independence.
• Liberty Bank (CDFI and MDI), New Orleans, LA 
  • Total ECIP Investment: $133,000,000 
  • Alden McDonald, Jr , CEO: “Because of the ECIP investment, we were able to launch new initiatives that allow more people and small businesses to access funding during the economic stress of inflation and high interest rates. Daily, we see loans that would have otherwise been turned down by other institutions. Yet, ECIP allows us to fund those loans and get repaid. With our history and experienced team, we understand how to lend in untraditional ways that are safe and profitable for the bank.  Our primary goal is to provide fair, competitive structure and pricing to small businesses so they can grow and thrive well into the future.”  
  • Success Story: Recently, Liberty Bank funded a business loan for the purchase of a commercial vehicle. This company currently has 10 employees and is growing. After a few months of earning more revenue due to the initial loan, the business returned to Liberty seeking to purchase commercial space for its expansion. 

 

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WASHINGTON – Today, Deputy Secretary Wally Adeyemo and Deputy Assistant Secretary Todd Conklin met with Bank Policy Institute leaders and Chief Executive Officers to discuss cybersecurity and the operational resilience of the broader financial sector. The group discussed opportunities to continue to scale Treasury’s Project Fortress to leverage the support of larger institutions and federal government assets to provide support to smaller financial institutions. The group also discussed ongoing public/private partnership work specific to bolstering the resilience of critical federal government operated systems.

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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning three individuals, five companies, and two vessels that are involved in smuggling oil and liquified petroleum gas (LPG) to generate revenue for Hizballah. The network, comprised of Lebanese businessmen and companies and overseen by a senior leader of Hizballah’s finance team, has facilitated dozens of LPG shipments to the Government of Syria and channeled the profits to Hizballah. Illicit oil and LPG smuggling operations generate hundreds of millions of dollars for Hizballah and support the group’s terrorist activities.

“Hizballah continues to launch rockets into Israel and fuel regional instability, choosing to prioritize funding violence over taking care of the people it claims to care about, including the tens of thousands displaced in southern Lebanon,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury will continue to disrupt the oil smuggling and other financing networks that support Hizballah’s war machine.”

Today’s action is being taken pursuant to counterterrorism authority Executive Order (E.O.) 13224, as amended. The U.S. Department of State designated Hizballah as a Specially Designated Global Terrorist group (SDGT) pursuant to E.O. 13224 on October 31, 2001.

HIZBALLAH FINANCE NETWORKS AND OPERATIONS

Treasury has taken consistent action to target individuals directly or indirectly involved in Hizballah’s finance operations that provide critical revenue for the organization. Two prominent Hizballah officials involved in these efforts include Muhammad Qasir (Qasir) and Muhammad Qasim al-Bazzal (al-Bazzal), who manage a channel for transporting LPG and other oil distillates on behalf of Hizballah and directly receive payment for their sale. On May 15, 2018, OFAC designated Qasir pursuant to E.O. 13224, as amended, for acting for or on behalf of Hizballah as a critical conduit for financial disbursements from Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) to Hizballah. On November 20, 2018, OFAC designated al-Bazzal, an associate of Qasir, pursuant to E.O. 13224 for his support to Hizballah. OFAC has also taken a series of actions targeting Hizballah petroleum smuggling operations, including a January 31, 2024 action that targeted a Hizballah and IRGC-QF network that generated hundreds of millions of dollars’ worth of revenue through the sale of Iranian commodities including petroleum, much of it to the Syrian government. 

The network designated today includes another senior Hizballah finance team official, and two Lebanese businessmen providing a seemingly legitimate front to facilitate Hizballah’s oil smuggling efforts. This network has facilitated dozens of LPG shipments to the Government of Syria, working with Syrian regime official Yasser Ibrahim, who was designated by the Department of State on August 20, 2020 for his role in corrupt business deals that benefitted Syrian President Assad. 

HIZBALLAH OIL SMUGGLING NETWORK KEY FIGURES

As of late 2023, Hizballah official Muhammad Ibrahim Habib al-Sayyid (al-Sayyid) assumed responsibility for some of Hizballah’s commercial businesses from al-Bazzal. Al-Sayyid previously travelled with al-Bazzal to Southeast Asia to coordinate potential oil deals in the region for Hizballah’s finance team. He has also acted as an interlocutor between al-Bazzal and Lebanese businessman Ali Nayef Zgheib (Zgheib) on an oil project at a refinery site in Az-Zahrani, Lebanon. 

Since at least late 2019, Zgheib, a petroleum chemistry expert, has advised and assisted Hizballah’s finance team behind the scenes, and has met with Qasir and al-Bazzal to coordinate their activities. As a member of Hizballah’s oil smuggling network, Zgheib secured storage tanks, likely for oil, on behalf of Hizballah. Senior Hizballah officials Qasir and al-Bazzal have made a profit from the LPG deals with Zgheib. Zgheib has met with at least one Hizballah-affiliated Lebanese Member of Parliament to discuss the financing of Hizballah oil projects and has also coordinated with Hizballah financier Muhammad Ibrahim Bazzi (Bazzi) regarding business negotiations. On May 17, 2018, OFAC designated Bazzi pursuant to E.O. 13224 for his support to Hizballah. 

Lebanese businessman Boutros Georges Obeid (Obeid) is also involved in Hizballah’s energy deals, and jointly owns several companies, described below, with Zgheib. 

Al-Sayyid, Zgheib, and Obeid are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah. 

ZGHEIB AND OBEID BUSINESS NETWORK

Zgheib and Obeid own and manage Heavy Oil Distribution Company S.A.L. (HODICO) and several subsidiaries that have been involved in Hizballah’s energy deals, many of which have been coordinated by al-Bazzal. Zgheib serves as the Director of HODICO, while Obeid serves as the Chairman. Zgheib and Obeid also jointly manage Heavy Oil Distribution Company SAL Offshore (HODICO Offshore). Another HODICO subsidiary managed by Zgheib and Obeid, Heavy Industrial Fuels SAL HIF (HIF SAL), received a $1 million payment in 2022 from Yasser Ibrahim that was arranged by al-Bazzal, likely for LPG shipments to Syria. 

Obeid is the primary owner of O.H.G. Holding SAL, another company within the HODICO group of companies, for which Zgheib serves as a director and member of the board. In 2020, Zgheib requested al-Bazzal’s assistance to manage payments for O.H.G. Holding SAL, which had encountered difficulties in transferring payments. 

HODICO and HIF SAL are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah. 

HODICO Offshore is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Obeid and Zgheib.

O.H.G. Holding SAL is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Obeid. 

LPG SHIPMENT VESSELS

European Lebanese International Trade S.A.R.L. (ELIT) is represented by al-Bazzal and was responsible for dozens of LPG shipments made by the LPG tankers ALPHA GAS (IMO: 8817693) and MARINA (IMO: 9005493) to Baniyas port in Syria for Hokoul SAL Offshore Company (Hokoul), which was designated on September 4, 2019, pursuant to E.O. 13224, for being owned or controlled by al-Bazzal. Since al-Bazzal procured the MARINA in 2020, he and other Hizballah officials received payments from Yasser Ibrahim and Hokoul for shipments made by the tanker. In early 2022, al-Bazzal reached an agreement to pay for the purchase of the ALPHA GAS vessel via Hokoul. ELIT was used by al-Bazzal to cover the operating expenses for the ALPHA GAS and MARINA; Bazzal was at one time owed approximately $4 million for shipments made by the tankers. Both vessels have transported LPG to Baniyas port in Syria for Hokoul since their acquisition. 

ELIT is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah.

The ALPHA GAS and MARINA are being identified as property in which Hizballah has an interest.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

Non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

In addition, non-U.S. financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and individuals may expose themselves to sanctions risk. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today.

Additional Treasury resources on countering the financing of terrorism:

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Funding will support rural and Tribal businesses, healthcare businesses, and advanced manufacturers in the clean energy sector.

WASHINGTON – Today, the U.S. Department of the Treasury announced that the Nevada Governor’s Office of Economic Development has been awarded more than $4 million to help small businesses in key sectors of the economy grow and hire through the State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP). 

Part of the Biden-Harris Administration’s economic agenda, this program provides funding to connect underserved and very small businesses to the financing needed to participate in key Investing in America supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, clean energy generation, and more. The SBOP was designed to catalyze additional private sector investment by supporting small business technical assistance services. 

“The Biden-Harris Administration is committed to expanding access to capital and creating opportunities for entrepreneurs to grow their businesses in thriving sectors,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “With these resources, Nevada will be able to provide critical legal and financial services to small businesses, including to manufacturers, that are fueling Nevada’s booming clean energy economy.”  

“Nevada’s small businesses are key to our economy, and I will always work to ensure they have the resources they need to succeed,” said U.S. Senator Catherine Cortez Masto. “This federal funding will help small businesses throughout our state access financing and support economic growth in Nevada, and I am proud to support it.” 

“As Nevada’s economy continues to grow, it’s critical that we support our small businesses and entrepreneurs,” said U.S. Senator Jacky Rosen. “I’m glad to see millions of dollars are coming to our state to help small businesses flourish in industries like health care, clean energy, and advanced manufacturing. I’ll keep working across the aisle to get Nevada’s small businesses the resources and support they need.”

“By providing clean energy companies better access to capital, we are laying the groundwork for the Nevada economy of tomorrow. These funds will allow companies involved in clean energy generation, electric vehicle manufacturing, and semiconductor production to expand. Already 10,000 jobs have been created producing clean energy in Nevada and another 40,000 jobs are expected in the next 10 years. Investing in these businesses now means more opportunity and better-paying jobs for Nevadans in the future,” said U.S. Congresswoman Dina Titus. 

“This federal funding is an important step forward in our goal to build a resilient and inclusive economy that works for all Nevadans,” said U.S. CongressmanStephen Horsford. “By investing in our small businesses through the State Small Business Credit Initiative, we empower entrepreneurs, especially in underserved areas, to create growth in sectors like clean energy and healthcare. This investment will not only support job creation but will also strengthen Nevada’s position as a leader in the clean energy economy, ensuring that our state’s economic future is bright and sustainable.” 

“We are thrilled by being selected for this competitive SBOP award which will reinforce our Nevada SSBCI program in critical areas such as the acceleration of highly scalable startups, providing technical assistance for health care businesses, expanding a tribal entrepreneurial development program, and supporting small business manufacturers,” said Karsten Heise, Senior Director of Strategic Programs & Innovation at the Nevada Governor’s Office of Economic Development and SSBCI program manager. “We will be partnering again with the Nevada Small Business Development Center and utilizing their deep expertise in counseling our state’s small businesses. Furthermore, through its program design Nevada’s SBOP will strengthen Nevada’s leading CHIPS Act projects such as the NSF Engines and EDA Tech Hub.”

The Nevada Governor’s Office of Economic Development submitted this application, which was selected through a competitive process. Using this $4.2 million award and partnering with planned subrecipient Nevada Small Business Development Center (Nevada SBDC), Nevada will provide technical assistance services to both high growth potential companies and Main Street small businesses to reach very small and underserved businesses across the state. These services will help rural and Tribal businesses, startups, healthcare businesses, and advanced manufacturers (particularly those producing lithium batteries and other electric vehicle components) to access the legal, financial advisory, and accounting services necessary to apply for loan or investment support. This award will enable small business growth in Nevada which will power the state’s electric, innovative, and connected future. Partners in this initiative will include the Nevada SBDC, the Nevada Tech Hub, and the National Science Foundation Engines.

Selected jurisdictions will build or expand technical assistance programs focused on connecting very small and underserved businesses to financing available through SSBCI, or other state or federal small business programs, including in the infrastructure, manufacturing, clean energy, or climate resiliency space. Jurisdictions have been selected based on their plans to create innovative, high-impact models of small business technical assistance delivery that demonstrate a vision to improve access to capital for historically overlooked businesses across the nation. 

The American Rescue Plan Act reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 280 Tribal governments. 

In addition to today’s announcement, Treasury has announced the approvals of SSBCI Technical Assistance grants allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing $145 million for 48 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of approved programs here.

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