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WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) took additional action to target shipments of Iranian commodities undertaken by the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial facilitator Sa’id al-Jamal. Today’s action targets two Hong Kong- and Marshall Islands-based ship owners and two vessels for their role in shipping commodities on behalf of al-Jamal, and follows a February 27 action targeting a related vessel, the ARTURA. The revenue generated through al-Jamal’s network continues to enable Houthi militant efforts, including ongoing and unprecedented attacks on international maritime commerce in the Red Sea and Gulf of Aden.

“The IRGC-QF and the Houthis continue to rely on the illicit sale of commodities to finance their attacks on commercial shipping in the Red Sea and Gulf of Aden,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States remains resolved to hold accountable those who enable these destabilizing activities.”

Today’s action is being taken pursuant to the counterterrorism authority in Executive Order (E.O.) 13224, as amended. Sa’id al-Jamal was designated pursuant to E.O. 13224, as amended, on June 10, 2021 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF. The IRGC-QF was designated pursuant to E.O. 13224 on October 25, 2007 for providing support to multiple terrorist groups. The U.S. Department of State designation of Ansarallah (commonly known as the Houthis) as a Specially Designated Global Terrorist group, pursuant to E.O. 13224, as amended, became effective February 16, 2024.

IRGC-QF AND HOUTHI COMMODITIES SHIPMENTS

Palau-flagged RENEEZ, which is owned and managed by Marshall Islands-based Reneez Shipping Limited, has transported tens of thousands of metric tons of Iranian commodities for the network of Iran-based IRGC-QF-backed Houthi financier Sa’id al-Jamal. Al-Jamal’s network often uses falsified cargo documents to mask the Iran-origin cargo onboard and to obfuscate its ties to Iran and al-Jamal’s network.

Reneez Shipping Limited 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, Sa’id al-Jamal. The RENEEZ is being identified as blocked property in which Reneez Shipping Limited has an interest.

The Panama-flagged ARTURA was sanctioned as part of the February 27, 2024 action for transporting Iranian commodities on behalf of al-Jamal. ARTURA falsified its Automatic Identification System (AIS) to indicate it was traveling north from Singapore while the vessel was in the process of conducting a ship-to-ship (STS) transfer with the Panama-flagged ETERNAL FORTUNE. ETERNAL FORTUNE, which is owned by Hong Kong-based Hongkong Unitop Group Ltd, also emitted a false AIS signal while receiving the STS transfer from the ARTURA.

Hongkong Unitop Group Ltd 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, Sa’id al-Jamal. The ETERNAL FORTUNE is being identified as blocked property in which Hongkong Unitop Group Ltd 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. 

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 and entities designated today.

 

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WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two individuals and five entities associated with the Intellexa Consortium for their role in developing, operating, and distributing commercial spyware technology used to target Americans, including U.S. government officials, journalists, and policy experts. The proliferation of commercial spyware poses distinct and growing security risks to the United States and has been misused by foreign actors to enable human rights abuses and the targeting of dissidents around the world for repression and reprisal. 

“Today’s actions represent a tangible step forward in discouraging the misuse of commercial surveillance tools, which increasingly present a security risk to the United States and our citizens,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States remains focused on establishing clear guardrails for the responsible development and use of these technologies while also ensuring the protection of human rights and civil liberties of individuals around the world.” 

In advance of the third Summit for Democracy, hosted by the Republic of Korea in Seoul on March 18, 2024, this action supports the Biden-Harris Administration’s government-wide effort to counter the risks posed by commercial spyware and to establish robust protections against the misuse of such tools. Today’s designations align with steps announced in March 2023 around the second Summit for Democracy including the issuance of an Executive Order (E.O.) 14093 to Prohibit U.S. Government Use of Commercial Spyware that Poses Risks to National Security; the Joint Statement on Efforts to Counter the Proliferation and Misuse of Commercial Spyware; and the Guiding Principles on Government Use of Surveillance Technologies. This action reflects the U.S. government’s commitment to use diverse tools and authorities, including sanctions as well as export controls and visa restrictions, to counter the misuse of such sophisticated surveillance technology.   

PREDATOR SPYWARE SOLD TO CUSTOMERS AROUND THE GLOBE

Since its founding in 2019, the Intellexa Consortium has acted as a marketing label for a variety of offensive cyber companies that offer commercial spyware and surveillance tools to enable targeted and mass surveillance campaigns. These tools are packaged as a suite of tools under the brand-name “Predator” spyware, which can infiltrate a range of electronic devices through zero-click attacks that require no user interaction for the spyware to infect the device. Once a device is infected by the Predator spyware, the spyware can be leveraged for a variety of information stealing and surveillance capabilities—this includes the unauthorized extraction of data, geolocation tracking, and access to a variety of applications and personal information on the compromised device. 

The Intellexa Consortium, which has a global customer base, has enabled the proliferation of commercial spyware and surveillance technologies around the world, including to authoritarian regimes. Furthermore, the Predator spyware has been deployed by foreign actors in an effort to covertly surveil U.S. government officials, journalists, and policy experts. In the event of a successful Predator infection, the spyware’s operators can access and retrieve sensitive information including contacts, call logs, and messaging information, microphone recordings, and media from the device.    

PRESIDENTIAL DIRECTIVE TO PROMOTE ROBUST COMMERCIAL SPYWARE STANDARDS TO PROTECT NATIONAL SECURITY AND UNIVERSAL HUMAN RIGHTS 

As described in E.O. 14093 and the White House Fact Sheet, commercial spyware has proliferated in recent years with few controls and a high risk of abuse.  A growing number of foreign governments around the world, moreover, have deployed this technology to facilitate repression and enable human rights abuses, including to intimidate political opponents and curb dissent, limit freedom of expression, and monitor and target activists and journalists. Misuse of these powerful surveillance tools has not been limited to authoritarian regimes. Democracies also have confronted revelations that actors within their systems have misused commercial spyware to target their citizens without proper legal authorization, safeguards, and oversight. 

This Presidential Directive has identified that the United States has a fundamental national security and foreign policy interest in countering and preventing the proliferation of commercial spyware that has been or risks being misused, in light of the core interests of the United States in protecting U.S. government personnel and U.S. citizens around the world; upholding and advancing democracy; promoting respect for human rights; and defending activists, dissidents, and journalists against threats to their freedom and dignity. 

To advance these interests and promote responsible use of commercial spyware, the United States has established robust protections and procedures to ensure that any U.S. government use of commercial spyware helps safeguard its information systems and intelligence and law enforcement activities against significant counterintelligence or security risks; aligns with its core interests in promoting democracy and democratic values around the world; and ensures that the U.S. government does not contribute, directly or indirectly, to the proliferation of commercial spyware that has been misused by foreign governments or facilitate such misuse.

KEY ENABLERS OF THE INTELLEXA CONSORTIUM

Tal Jonathan Dilian (Dilian) is the founder of the Intellexa Consortium, and is the architect behind its spyware tools. The consortium is a complex international web of decentralized companies controlled either fully or partially by Dilian, including through Sara Aleksandra Fayssal Hamou.   

Sara Aleksandra Fayssal Hamou (Hamou), is a corporate off-shoring specialist who has provided managerial services to the Intellexa Consortium, including renting office space in Greece on behalf of Intellexa S.A. Hamou holds a leadership role at Intellexa S.A., Intellexa Limited, and Thalestris Limited.  

Intellexa S.A. is a Greece-based software development company within the Intellexa Consortium and has exported its surveillance tools to authoritarian regimes. Intellexa S.A. was added to the Department of Commerce Entity List on July 18, 2023, for trafficking in cyber exploits used to gain access to information systems, threatening the privacy and security of individuals and organizations worldwide. 

Intellexa Limited is an Ireland-based company within the Intellexa Consortium and acts as a technology reseller and holds assets on behalf of the consortium. Intellexa Limited was added to the Department of Commerce Entity List on July 18, 2023, for trafficking in cyber exploits used to gain access to information systems, threatening the privacy and security of individuals and organizations worldwide. 

Cytrox AD is a North Macedonia-based company within the Intellexa Consortium and acts as a developer of the consortium’s Predator spyware. Cytrox AD was added to the Department of Commerce Entity List on July 18, 2023, for trafficking in cyber exploits used to gain access to information systems, threatening the privacy and security of individuals and organizations worldwide. 

Cytrox Holdings Zartkoruen Mukodo Reszvenytarsasag (Cytrox Holdings ZRT) is a Hungary-based entity within the Intellexa Consortium. Cytrox Holdings ZRT previously developed the Predator spyware for the group before production moved to Cytrox AD in North Macedonia. Cytrox Holdings ZRT was added to the Department of Commerce Entity List on July 18, 2023, for trafficking in cyber exploits used to gain access to information systems, threatening the privacy and security of individuals and organizations worldwide. 

Thalestris Limited is an Ireland-based entity within the Intellexa Consortium that holds distribution rights to the Predator spyware and acts as a financial holding company for the Consortium.   

Dilian, Hamou, Intellexa S.A., Intellexa Limited, Cytrox AD, Cytrox Holdings ZRT, and Thalestris Limited are being designated pursuant to Executive Order (E.O.) 13694, as amended by E.O. 13757, for being responsible for or complicit in, or having engaged in, directly or indirectly, cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of causing a significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain.

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. 

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. 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 Specially Designated Nationals (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.

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Alongside new efforts, Deputy Secretary of the Treasury Wally Adeyemo releases new blog post detailing how Treasury Department programs have helped keep families in their homes and contributed to housing construction and preservation

WASHINGTON – Today, the U.S. Department of the Treasury announced new efforts to increase the supply of housing in the year ahead. These efforts include:

1. Updated guidance for the American Rescue Plan’s (ARP) State and Local Fiscal Recovery Funds (SLFRF) to make it easier for recipients to use remaining funds to construct affordable housing;
2. New clarifications to the ARP’s Emergency Rental Assistance (ERA) program which will make clear that qualifying recipients can use remaining funds on a broad range of uses to fund affordable housing serving very low-income families; and
3. An extension of the Federal Financing Bank’s (FFB) financing support for a risk-sharing initiative between the Department of Housing and Urban Development (HUD) and state and local housing finance agencies in order to lower the cost of creating and preserving affordable housing.

These announcements build on the Biden-Harris Administration’s Housing Supply Action Plan to boost the nation’s stock of affordable housing and lower housing costs, including through new actions announced last week.

Over the past three years, the speed and strength of the Biden-Harris Administration’s pandemic response helped to thwart the worst economic outcomes anticipated from the COVID shock and fostered the fastest – and fairest – economic recovery in recent history. During this recovery, the Treasury Department encouraged communities to address housing supply needs by making innovative use of ARP funds, complementing Administration-wide efforts to help families across the country remain in their homes, including increased options for mortgage payment forbearance, enhanced loan modifications to resolve delinquencies, and a foreclosure moratorium. The Treasury Department has also supported the construction of new affordable housing through tax incentives, such as the Low-Income Housing Tax Credit (LIHTC), the largest source of federal support for construction and rehabilitation of affordable rental housing across the country, and community development programs like the Capital Magnet Fund. The combination of these programs has resulted in historically low foreclosure and eviction rates, and has increased the supply of and access to affordable housing.

Today’s announcements will help increase the supply of housing in communities across the country and strengthen housing security for all Americans. More information on these initiatives is detailed below and in a new blog post by Deputy Secretary of the Treasury Wally Adeyemo. In addition, the Treasury Department will hold a series of stakeholder convenings throughout the year to identify the most promising levers that may be at the Department’s disposal to increase housing supply, while also supporting broader Administration and legislative efforts. The first of these convenings occurred February 29, during which Deputy Secretary Adeyemo and other senior Treasury Department officials met with housing leaders and stakeholders to discuss challenges and opportunities to expand housing supply.

SLFRF Guidance 

The State and Local Fiscal Recovery Funds (SLFRF) program is driving investments at every level of government to create new and improve existing affordable housing stock. The Treasury Department has encouraged jurisdictions to use their SLFRF funds to support housing stability and the construction and preservation of new affordable housing. In the summer of 2022, the Department expanded the flexibility for recipients to use their SLFRF funds to invest in long-term affordable housing projects. In the approximately one year following that announcement, governments increased their funds budgeted in this area by more than 50%. As of September 30, 2023, governments have budgeted more than $7.1 billion in SLFRF award funds for long-term affordable housing, including both rental and owner-occupied homes, which is part of $18.5 billion in SLFRF funds budgeted for housing uses overall. These investments are supporting more than 20,000 units of affordable housing. 

Today, the Treasury Department is making it easier for recipients to use available recovery funds to boost housing supply. The Department is updating the SLFRF guidance to enable states and localities with remaining resources to use those funds on more eligible housing projects. Recipients funding an affordable housing project will be presumed to have used funds for an eligible use if the project will house families earning up to 120% of area median income, an increase from 65%, or if the project meets the terms of one of more than a dozen federal housing programs. Recipients can also fund projects supported by Fannie Mae and Freddie Mac that meet the needs of teachers, firefighters, nurses, and other workers increasingly priced out of certain markets. 

ERA Guidance 

The more than $46 billion in Emergency Rental Assistance (ERA) program funding created the first nationwide infrastructure for eviction prevention, delivering federal relief to millions of households and enabling communities to set up eviction diversion programs – many for the first time. Today, the Treasury Department is announcing new clarifications to the ERA2 program to make clear that qualifying recipients that have obligated at least 75% of their funds for financial assistance, housing stability services, and administrative costs can use their remaining funds for predevelopment and acquisition costs for affordable housing serving very low-income families – in addition to other eligible uses like construction, rehabilitation, or preservation of affordable housing. While the ERA program has already made more than 12.3 million household payments to keep renting families in their homes, these changes will build out the pipeline to bring additional rental units onto the market. 

FFB-HUD Risk Sharing Initiative

Through a new agreement with the Department of Housing and Urban Development (HUD) announced last week, the Treasury Department is indefinitely extending the Federal Financing Bank’s (FFB) financing support for a risk-sharing initiative between HUD and state and local housing finance agencies. This will dramatically lower the cost of capital for certain low-risk housing developments. Prior iterations of this FFB program, which was restarted by the Biden Administration in 2021, leveraged nearly $5 billion for the development or substantial rehabilitation of 42,000 affordable rental homes for low-income families, seniors, and persons with disabilities. The Treasury Department estimates that tens of thousands of additional affordable homes will be created or preserved through this initiative over the next decade.

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New Inflation Reduction Act Provisions Allow State, Local, and Tribal Governments, Tax-Exempt Entities, U.S. Territories, Rural Energy Co-ops, and More to Access Tax Credits for Building a Clean Energy Economy

WASHINGTON — Today, as part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final rules on key provisions in the Inflation Reduction Act to expand the reach of the clean energy tax credits and help build projects more quickly and affordably, which will create good-paying jobs and lower energy costs for families. 

The Inflation Reduction Act created two new credit delivery mechanisms—elective pay (otherwise known as “direct pay”) and transferability—that will help enable state, local, and Tribal governments; non-profit organizations; Puerto Rico and other U.S. territories; and other entities to take advantage of clean energy tax credits. Until the Inflation Reduction Act introduced these new credit delivery mechanisms, governments, many types of tax-exempt organizations, and even many businesses could not fully benefit from tax credits like those that incentivize clean energy deployment.  

“The Inflation Reduction Act’s new tools to access clean energy tax credits are a catalyst for meeting President Biden’s historic economic and climate goals. They are acting as a force multiplier, bringing governments and nonprofits to the table for the first time and enabling companies to realize greater value from incentives to deploy new clean power and manufacture clean energy components,” said Secretary of the Treasury Janet L. Yellen. “More clean energy projects are being built quickly and affordably, and more communities are benefitting from the growth of the clean energy economy.”

“Thanks to President Biden’s Inflation Reduction Act, local governments, nonprofits, and other non-taxable entities can now claim clean energy tax credits for the first time,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Today’s final rule provides additional clarity for organizations so they can take full advantage of this game-changing opportunity to expand clean energy all across America.”

“President Biden’s Investing in America agenda has created game changing opportunities to ensure the health and savings benefits of clean energy solutions transform all aspects of American life,” said Secretary of Energy Jennifer Granholm. “Energy costs are the second-highest expense for nonprofits, and now, for the first-time ever nonprofits, from hospitals to food banks, can amplify their impacts thanks to direct payments for installing clean energy technologies using every dollar saved to reinvest in crucial community services.”

The Inflation Reduction Act allows tax-exempt and governmental entities to receive elective payments for 12 clean energy tax credits, including the major Investment and Production Tax (45 and 48) credits, as well as tax credits for electric vehicles and charging stations. Businesses can also choose elective pay for three of those credits: the credits for Advanced Manufacturing (45X), Carbon Oxide Sequestration (45Q), and Clean Hydrogen (45V). 

The Inflation Reduction Act also allows businesses to transfer all or a portion of any of 11 clean energy credits to a third-party in exchange for tax-free immediate funds, so that businesses can take advantage of tax incentives if they do not have sufficient tax liability to fully utilize the credits themselves. Entities without sufficient tax liability were previously unable to realize the full value of credits, leaving only corporations able to take advantage of federal tax incentives. This raised costs, created challenges for financing projects, and limited the ability of communities and other organizations to realize the full economic and environmental benefits of clean energy. Final rules on transferability will be finalized in the near future.

Treasury’s elective pay final rules provide certainty for applicable entities to understand the law’s scope and requirements for eligibility. The final rules also lay out the process and timeline to claim and receive an elective payment.

Along with final rules on elective pay, Treasury today also issued a separate Notice of Proposed Rulemaking (NPRM) that is intended to provide further clarity and flexibility for applicable entities that that co-own clean energy projects and would like to utilize elective pay.

Under the IRA, entities treated as partnerships for federal tax purposes are not eligible for elective pay, regardless of whether one or more of its partners is an applicable entity. However, the proposed elective pay regulations clarified — and the final regulations confirm — that there are pathways for an applicable entity to access elective pay for credits it earns through a joint ownership arrangement including validly “electing out” of partnership tax treatment. Treasury and IRS agreed with commenters that existing guidance on making a valid election out of partnership tax treatment for clean energy arrangements was limited, and updates were needed for these arrangements to be more effective.

The section 761(a) NPRM issued today provides a broader and more accessible pathway for applicable entities that co-own renewable energy projects to elect out of partnership tax status and therefore access elective pay. To qualify under these proposed rules, co-ownership arrangements must be organized exclusively to produce electricity from their applicable credit property, have one or more applicable entity co-owners that will claim elective pay, and meet certain other requirements.

Specifically, these proposed regulations would:

• Permit renewable energy investments to be made through a noncorporate entity, rather than requiring direct co-ownership of the property or facility by the applicable entity;
• Modify certain joint marketing restrictions to provide that multi-year power purchase agreements would not violate the requirements to elect out of partnership tax treatment.

Treasury and IRS welcome written comments submitted through regulations.gov. The comment period is open until May 10, 2024.

To facilitate eligible entities receiving a direct payment, transferring a clean energy credit, or claiming a CHIPS credit, the IRS built IRS Energy Credits Online (ECO) for recipients to complete the pre-file registration process and receive a registration number. The registration number must be included on the eligible entity’s annual return when making an elective payment election or transfer election for a clean energy credit. The registration process helps prevent improper payments to fraudulent actors and provides the IRS with basic information to ensure that any entity that qualifies for these credit monetization mechanisms can readily access these benefits upon filing a return and making an elective payment election.

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As Prepared for Delivery

Good morning, everyone. It’s an honor to be here today at the 2024 UnidosUS Changemakers Summit. 

At the Treasury Department, we believe in a fundamental truth: every family deserves the opportunity to thrive, regardless of their background, zip code, or the diverse ways they define “family.”

This belief underpins our work and shapes our vision for the future. We understand that racial equity is not just a moral imperative, but an economic one. Failing to invest in underserved communities hinders our national prosperity, limiting the potential of entire segments of our society. 

Our goal is to drive an inclusive and resilient economy that fosters opportunity for all Americans. We are committed to addressing structural inequities that have historically prevented individuals and communities from reaching their full potential. This is what Secretary Yellen has referred to as “modern supply side economics.” We believe that by investing in people, places, and infrastructure, we can unlock the immense potential that lies within every corner of our nation and broaden economic opportunity across the country.

Our work has already yielded significant progress. The American Rescue Plan, a landmark piece of legislation, provided critical economic support during the height of the pandemic. It helped stabilize families and businesses, preventing widespread economic devastation – helping to secure the most equitable economic recoveries on record.  While more work remains:

• Hispanic homeownership rates increased by 2 percentage points from 2019 to 2023.
• Median real earnings for Latino workers increased nearly 4% 2019Q4 to Q42023.
• Hispanic business ownership has hit an all-time high of 9.8%.
• Hispanic family wealth increased by 47% from 2019 to 2022. 

Now, as we move forward, our focus shifts towards fostering inclusive growth and building lasting assets. 

Our efforts fall into five key areas:

1. Understanding the Impact of Racial Inequity: We are committed to developing a comprehensive understanding of how racial inequity hinders our national economy. Through data-driven analysis and research, we aim to identify the systemic challenges holding back communities of color and other underserved groups. This knowledge will inform the development of targeted solutions and guide our policy decisions.
    
   • A 2023 study by the Treasury Department found that the Premium Tax Credit (helping families purchase health insurance), the Earned Income Tax Credit, and the Child Tax Credit provide significant benefits for Latino families.^[1] 
      
2. Strengthening Capital Delivery Systems: We are actively working to strengthen the Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) that serve as vital lifelines for underserved communities. Under the Biden-Harris Administration, the Community Development Financial Institutions Fund (CDFI Fund) has seen historic levels of investment, distributing billions of dollars in grants and capital. These resources empower CDFIs and MDIs to provide critical financial services, such as loans and investment capital, to communities that have traditionally been excluded from mainstream financial institutions.
    
   • For example, Treasury’s Emergency Capital Investment Program (ECIP) has invested $1.6 billion in Latino-owned and Latino-majority shareholder depository institutions. We estimate that investments across the entire ECIP portfolio may increase lending in Latino communities by nearly $58 billion over the next decade. Also, CDFI Fund’s Equitable Recovery Program (ERP) includes 70 grants totaling $226 million to CDFIs in Puerto Rico – the largest infusion of ERP funding to any single state or territory.^[2]  
      
3. Protecting and Growing Assets: Building financial security and achieving economic mobility are essential for individuals and families to thrive. We are working on strategies to help ensure everyone has the opportunity to accumulate assets, such as housing or retirement savings, which can provide a buffer against financial hardship and create opportunities for future investment.
    
   • For example, the 2021 Advance Child Tax Credit helped reduce poverty among Hispanic Children from 14.7% in 2020 to 8.4% in 2021.  This is why President Biden continues to advocate for its reinstatement, and why the Treasury Department has incorporated the lessons learned from our outreach partnerships to ensure we maximize credit uptake among the Hispanic community. 
      
4. Promoting Economic Mobility Through a Fair Tax System: We believe that a fair and equitable tax system plays a vital role in promoting economic mobility. The Inflation Reduction Act (IRA) includes critical funding for the Internal Revenue Service (IRS) that is being used to help ensure everyone can access the tax credits and benefits they deserve.
    
   • For example, these improvements include increased funding for customer service, modernized technology, and enhanced outreach efforts to underserved communities – including modernizing the Individual Taxpayer Identification Number (ITIN).
      
5. Building a Diverse and Inclusive Treasury Department: We understand that diversity and inclusion are not just abstract ideals; they are essential for effective policymaking and service delivery. We are actively building a workforce that reflects the rich diversity of America, ensuring that the voices and perspectives of all communities are represented within the halls of the Treasury Department.

• In FY21-FY23 Treasury spent $45 million in Hispanic communities in procurements efforts.

We recognize that achieving our goals requires collaboration. We are actively seeking partnerships with government agencies, the private sector, and community organizations. By working together, we can leverage the strengths of each sector to multiply the impact of our efforts and create a more equitable future for all.

The journey towards a truly equitable economy is long and complex, but we are firmly committed to the path we have embarked upon. We believe that by investing in our communities, empowering individuals, and fostering a fair and inclusive economic system, we can unlock the vast potential of our nation and ensure that every American family has the opportunity to thrive.

Thank you.

 

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_{[1] Disparities in the Benefits of Tax Expenditures by Race and Ethnicity | U.S. Department of the Treasury}

_{[2] https://home.treasury.gov//news/press-releases/jy1397} 

Following U.S. termination of the Zimbabwe Sanctions Program, Treasury designates key actors under the Global Magnitsky Program

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 11 individuals, including Zimbabwe’s President Emmerson Mnangagwa, and three entities for their involvement in corruption or serious human rights abuse pursuant to E.O. 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

Concurrently, President Biden signed an Executive Order (E.O.) terminating the national emergency with respect to Zimbabwe and revoking the E.O.s that have authorized Zimbabwe-specific sanctions. As a result, the economic sanctions administered by OFAC pursuant to the Zimbabwe sanctions program are no longer in effect.

This transition to sanctions under the Global Magnitsky Program, consistent with recommendations in Treasury’s 2021 Sanctions Review, emphasizes the U.S. commitment to promoting accountability for corrupt and abusive networks restricting the political rights and economic resources of the people of Zimbabwe. 

“The United States remains deeply concerned about democratic backsliding, human rights abuses, and government corruption in Zimbabwe,” said Deputy Secretary of the Treasury Wally Adeyemo. “The changes we are making today are intended to make clear what has always been true: our sanctions are not intended to target the people of Zimbabwe. Today we are refocusing our sanctions on clear and specific targets: President Mnangagwa’s criminal network of government officials and businesspeople who are most responsible for corruption or human rights abuse against the people of Zimbabwe. These changes to our approach provide an opportunity for the Government of Zimbabwe to undertake key reforms to improve its record on human rights, good governance, and anti-corruption. Consistent with the findings of Treasury’s 2021 sanctions review, we are committed to the use of economic sanctions towards a clear and specific objective, in coordination with diplomacy and other tools of statecraft.”

TERMINATION OF THE ZIMBABWE SANCTIONS PROGRAM

The President’s E.O. of March 4, 2024, “Termination of Emergency With Respect to the Situation in Zimbabwe,” terminated the national emergency declared in E.O. 13288 and built upon in E.O. 13391 and E.O. 13469. As a result:

• All persons blocked solely pursuant to E.O. 13288, E.O. 13391, or E.O. 13469 (the authorities of the Zimbabwe Sanctions Program) will be removed today from OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List;
• All property and interests in property blocked solely pursuant to the Zimbabwe Sanctions Program will be unblocked today; and
• OFAC will remove the Zimbabwe Sanctions Regulations from the Code of Federal Regulations.

Pending or future OFAC investigations or enforcement actions related to apparent violations of the Zimbabwe Sanctions Regulations that occurred while the national emergency was in effect may still be carried out.

SANCTIONS TRANSITION UNDER THE GLOBAL MAGNITSKY PROGRAM

Emmerson Mnangagwa (Mnangagwa) is the President of Zimbabwe and is involved in corrupt activities, in particular those relating to gold and diamond smuggling networks. Mnangagwa provides a protective shield to smugglers to operate in Zimbabwe and has directed Zimbabwean officials to facilitate the sale of gold and diamonds in illicit markets, taking bribes in exchange for his services. Mnangagwa also oversees Zimbabwe’s security services, which have violently repressed political opponents and civil society groups. 

• Mnangagwa was originally listed in the Annex to E.O. 13288 of March 6, 2003 and the Annex to E.O. 13391 of November  22, 2005. Today, he is being designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery. 
• He is also designated for being a foreign person who is or has been a leader or official of an entity, including any government entity, that has engaged in, or whose members have engaged in, serious human rights abuse relating to the leader’s or official’s tenure. 

The First Lady of Zimbabwe, Auxillia Mnangagwa (Auxillia), facilitates her husband’s corrupt activities.  

• Auxillia is designated pursuant to E.O. 13818 for being a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

CORRUPT BUSINESS NETWORK 

President Mnangagwa has benefited from the corrupt network of Zimbabwean businessman Kudakwashe Regimond Tagwirei (Tagwirei), who was designated on August 5, 2020 pursuant to E.O. 13469 for having materially assisted, sponsored, or provided financial, material, logistical, or technical support for, or goods or services in support of, the Government of Zimbabwe, any senior official thereof, or any person whose property and interests in property are blocked pursuant to E.O. 13288, E.O. 13391, or E.O. 13469. Tagwirei is a close ally of Mnangagwa and has a longstanding association with the ruling party, the Zimbabwe African National Union-Patriotic Front (ZANU-PF). He has provided high-value gifts to senior members of the Government of Zimbabwe to gain access to resources and exerts significant control over major sectors of Zimbabwe’s economy. 

• Tagwirei is designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of corruption, and the transfer or the facilitation of the transfer of proceeds of corruption. 

Sandra Mpunga (Mpunga), Tagwirei’s wife, has been instrumental in Tagwirei’s business activities. 

• OFAC designated Mpunga on December 12, 2022 pursuant to E.O. 13469 for being the spouse of Tagwirei and is designating her pursuant to E.O. 13818 for having acted or purported to act for or on behalf of Sakunda Holdings.

Tagwirei and Mpunga are the sole beneficial owners of Sakunda Holdings, a Zimbabwean firm that has facilitated state corruption. 

• Sakunda Holdings was designated on August 5, 2020 pursuant to E.O. 13469 for being owned or controlled by, or for having acted or purported to act for or on behalf of Tagwirei. Sakunda Holdings is designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of corruption, and for being owned or controlled by, or having acted or purported to act for or on behalf of Tagwirei. 

Fossil Agro is a subsidiary of Sakunda Holdings and has provided it with material support. 

• OFAC designated Fossil Agro on December 12, 2022 pursuant to E.O. 13469 for providing material, logistical, or technical support to the Government of Zimbabwe. Fossil Agro is designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Sakunda Holdings.

The director of Fossil Agro and longtime business partner of Tagwirei, Obey Chimuka (Chimuka), sits on the board and serves as director of several Tagwirei-owned companies.

• Chimuka was designated on December 12, 2022 pursuant to E.O. 13469 for acting for or on behalf of Fossil Agro, Fossil Contracting and Tagwirei, and is designated pursuant to E.O. 13818 for being owned or controlled by, or having acted or purported to act for or on behalf of, Tagwirei.

Chimuka owns Fossil Contracting, which has received Government of Zimbabwe contracts that have facilitated acts of corruption. 

• Fossil Contracting was designated on December 12, 2022 pursuant to E.O. 13469 for providing material, logistical, or technical support to the Government of Zimbabwe, and is designated pursuant to E.O. 13818 for being owned or controlled by, or having acted or purported to act for or on behalf of, Chimuka.

SECURITY OFFICIALS 

Under the leadership of Mnangagwa and Zimbabwe’s First Vice-President Constantino Chiwenga (Chiwenga), Zimbabwe’s security forces have engaged in the violent repression of political activists and civil society organizations. Mnangagwa’s reelection was marred by fraud, the deployment of groups who intimidated voters, and the use of government-organized “ferret teams.” Since the election, the ferret teams, comprising intelligence, police, and military personnel, have likely been involved in the abduction of up to 12 individuals associated with civil society organizations or opposition parties, including Tapfumanei Masaya, who was found dead on November 13, 2023. Abductees report being pushed into vehicles, beaten and stripped naked, injected with unknown substances, threatened with retaliation, and later dumped on the roadside outside of Harare. In 2019, ferret teams reportedly abducted and assaulted more than 50 people. Opposition supporters also claim to have been tortured by security officials, including being stripped, beaten, and whipped at a Zimbabwe Republic Police (ZRP) station.

• Chiwenga, who has been Zimbabwe’s Vice President since 2018, was originally listed in the Annex to E.O. 13288 of March 6, 2003 and the Annex to E.O. 13391 on November  23, 2005. Chiwenga is designated pursuant to E.O. 13818 for being a foreign person who is or has been a leader or official of an entity, including any government entity, that has engaged in, or whose members have engaged in, serious human rights abuse relating to the leader’s or official’s tenure.

Zimbabwe’s Defense Minister Oppah Muchinguri (Muchinguri) is responsible for overseeing Zimbabwe’s Defense Forces and is the chair of the national Joint Operation Command. Under her leadership, Zimbabwe’s military personnel have engaged in violent repression. 

Godwin Matanga (Matanga) is the Commissioner-General of the ZRP. Under his leadership, ZRP members have participated in ferret team activities. 

• Matanga, who has led the ZRP since 2018, was identified in the Annex to E.O. 13391 on November  23, 2005 and is designated pursuant to E.O. 13818 for being a foreign person who is or has been a leader or official of an entity that has, or whose members have, engaged in serious human rights abuse relating to the leader’s or official’s tenure.

Stephen Mutamba (Mutamba) has been a Deputy Commissioner-General of the ZRP since at least 2019. Under his leadership, ZRP members have engaged in the violent oppression of political opposition.

• OFAC designated Mutamba on September 15, 2022 pursuant to E.O. 13469 for his role in undermining Zimbabwe’s democratic processes and institutions. He is designated pursuant to E.O. 13818 for being a foreign person who is or has been a leader or official of an entity, including any government entity, that has engaged in, or whose members have engaged in, serious human rights abuse relating to the leader’s or official’s tenure.

Walter Tapfumaneyi (Tapfumaneyi) has been the Deputy Director General of Zimbabwe’s Central Intelligence Organization (CIO) since 2020. He reportedly answers directly to Mnangagwa, and led the campaign to disrupt the 2023 electoral process through his leadership of ruling party-affiliated groups. He is also alleged to have been personally involved in past kidnappings.  

• Tapfumaneyi is designated pursuant to E.O. 13818 for being a foreign person who is or has been a leader or official of an entity, including any government entity, that has engaged in, or whose members have engaged in, serious human rights abuse relating to the leader’s or official’s tenure.

Owen Ncube (Ncube) was Zimbabwe’s Minister of State Security from 2018 to 2022, during which time he ordered security services to identify, abduct, and mistreat individuals assessed to be supporters of a Zimbabwean opposition group. He was recently reappointed to government as the Minister of State for Midlands Provincial Affairs. He is reported to lead a notoriously violent group that is alleged to be responsible for attacks and killings around Kwekwe, Zimbabwe.

• Ncube was designated on March 11, 2020 pursuant to E.O. 13469 for being responsible for, or participating in, human rights abuses related to political repression in Zimbabwe. Ncube is designated pursuant to E.O. 13818 for being a foreign person that is responsible for or complicit in, or has directly or indirectly engaged in, serious human rights abuse. 

SANCTIONS IMPLICATIONS

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. 

As a result of today’s Global Magnitsky 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. 

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. This transition in sanctions authorities demonstrates OFAC’s commitment to review and assess sanctions to ensure the integrity of designations and provides a clear and targeted approach to hold egregious human rights offenders and corrupt actors accountable. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. This sanctions transition is an opportunity for those designated to acknowledge their responsibility for sanctionable conduct and take steps to correct their 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.

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As Prepared for Delivery

Thank you for being here. I’m grateful for the warm welcome I’ve received in Chile over the past two days. I’ve had a very productive trip so far, including meeting with President Boric, Minister of Finance Marcel, and Central Bank Governor Costa to discuss the United States and Chile’s shared priorities. 

I’m glad to end my trip to Chile by visiting this lithium conversion plant owned by an American company. It’s a fitting place to talk about the strong economic relationship between the United States and Chile and the future our two countries are jointly building.

U.S.-Chile Economic Relations

Last year, the United States and Chile marked the bicentennial of our diplomatic relations. This year, we celebrate the twentieth anniversary of the U.S.-Chile Free Trade Agreement, which fuels mutual economic benefit. U.S. exports to Chile created over 70,000 American jobs in 2021 and the U.S. invested nearly $30 billion in Chile in 2022. 

Just last December, extensive cooperation between the U.S. Treasury Department and Chile’s Ministry of Finance culminated in a comprehensive bilateral tax treaty between the U.S. and Chile entering into force. This is the first such treaty signed by the U.S. to enter into force in over a decade. It will further reduce tax-related barriers to cross-border investment, facilitating even stronger economic ties between our countries. 

In my remarks today, I’d like to focus on one key aspect of the U.S.-Chile economic relationship that is only becoming more important: our work to build green and resilient supply chains. The United States is lowering energy costs, advancing our energy security, and combatting climate change through both investing at home and strengthening relationships with key partners like Chile. We are eager to build on this foundation going forward.

Our Partnership on Energy Security and Climate

President Biden and I have been focused on advancing our energy security. When energy prices are volatile, families around the world, including in the U.S. and Chile, shoulder the burden of high costs and unpredictability. These shocks add significant financial stress to households trying to make ends meet and to businesses trying to thrive and scale. 

We’ve coordinated with our allies and partners to mitigate external price shocks and keep costs down. When Russia invaded Ukraine, we responded quickly and decisively. At home, we released 180 million barrels from the Strategic Petroleum Reserve. Over time, record domestic oil and natural gas production also addressed our immediate needs. With a coalition of partners, we put in place a price cap on Russian oil. The price cap has deprived Russia of revenue while keeping energy markets well-supplied. Energy prices have declined, with gas now down around $1.70 per gallon from its high in June 2022 and global crude oil prices down around $40 per barrel since then. 

Around the world, the increasing frequency and severity of climate-related events also undermines energy security and has far-reaching economic impacts. Last month, California witnessed record floods, with several counties under a state of emergency. At the same time, devastating wildfires swept through Chile, destroying whole neighborhoods and leading to tragic loss of life. Climate change poses a threat to all of us. While we remain committed to pursuing short-term actions to lower energy costs, in the longer term, it’s the transition to clean energy that offers a pathway to both greater energy security and combatting the devastating effects of climate change.  

In the United States, the Bipartisan Infrastructure Law and the Inflation Reduction Act are helping drive progress. The Inflation Reduction Act provides tax credits to help American households make energy-efficiency improvements, allowing Americans to shrink and stabilize their energy bills right away. It’s also reinvigorating American manufacturing—creating well-paying jobs and fueling innovation. Companies have announced over $600 billion in manufacturing and clean energy investments since the start of this Administration. We’re seeing investments in places like Bessemer City, North Carolina, where I travelled this fall to see our country’s largest lithium hydroxide production facility. The cutting-edge lithium products being produced there will power America’s electric vehicle supply chain. 

And our investments at home won’t only impact energy production in the United States. Because it’s now cheaper to produce clean energy, production will increase and costs will drop more. This will make clean energy even more affordable—not only for Americans, but for Chileans and others around the globe. 

But we know that the United States can’t bolster our energy security or advance our climate agenda alone. 

Parts of our key supply chains, including for clean energy, are currently overconcentrated in China. This makes America more vulnerable to shocks in China, or whatever country dominates production, from natural disasters to macroeconomic forces, to deliberate actions such as economic coercion. So alongside investing at home, we’re pursuing an approach I’ve called friendshoring: bolstering our supply chains through strengthening our relationships with our key partners and allies.

Chile is one of those key partners. As we accelerate toward a clean energy future, our already strong economic relationship is poised for further strengthening. 

Copper is key to the transition to net zero, from electric vehicles to offshore wind turbines to transmission networks. If the world aims to achieve net-zero by 2050, demand for copper is projected to double by 2035. And Chile leads global production, with copper its top export. 

Chile is also the world’s second biggest producer of lithium, with 30 percent of global market share and the largest lithium reserves on earth. Like for copper, demand for lithium is expected to grow due to its key role in energy storage, such as for EV batteries. In fact, lithium demand is projected to more than triple by 2030.

As the United States and other countries grow our EV markets and invest more and more in renewables, Chile will play a key role. Our Free Trade Agreement with Chile means that critical minerals from Chile help vehicles qualify for the Inflation Reduction Act’s Clean Vehicle Tax Credit, boosting industries in both Chile and America.

Where we are today is a perfect example of our mutually beneficial economic ties. Albemarle is headquartered in North Carolina and has a production site in Salar de Atacama and this conversion plant in La Negra. The company employs more than 1,000 workers in Chile, over 75 percent of whom are from the region. It also recently launched an apprenticeship program to expand pathways into these jobs. Our ties with Chile increase our energy security at home, create economic opportunity in both our countries, and bring us all closer to achieving our climate goals. 

In the medium- to long-term, we’ll see shifts as we ramp up lithium production in the United States. Albemarle plans to reopen its lithium mine in North Carolina by 2030, capitalizing on Bipartisan Infrastructure Law funds and IRA tax credits. In Nevada, construction for a mine and processing facility has been underway since last March. But the global need for clean energy means there’s ample demand for both Chile and the U.S. to meet it. Researchers have estimated that there are over $3 trillion in global investment opportunities associated with the transition to net zero each year between now and 2050. President Biden and I are dedicated to further shoring up our bilateral cooperation and enabling both the U.S. and Chile to capitalize on these opportunities.

Chile’s Climate Agenda

I am also very impressed by Chile’s own ambitious climate agenda. Chile is leading the way on sustainable finance as the region’s first sovereign green bond issuer and the world’s first sovereign sustainability-linked bond issuer. It has one of the world’s greenest grids. Approximately sixty percent of its power comes from zero-carbon sources, including over a quarter generated by wind and solar.  

Chile has also put in place tax support for EV buyers and aims to reach 100 percent in EV sales by 2035. And it may well lead the way in green hydrogen, with more than 40 green hydrogen projects underway.

All of this makes Chile exactly the kind of partner we need in the transition to clean energy.

Conclusion

Indeed, the actions the United States and Chile are each taking—and those that we’re taking together—are driving progress. This year, the U.S. will continue investing at home and in supply chains that benefit both the U.S. and Chile. And around the world, other efforts—from Just Energy Transition Partnerships to support emerging markets to Chile’s leadership—will bring us closer to the future we need for the generations to come.

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As Prepared for Delivery

Good morning and thank you very much for inviting me here today.

Over the past two days, I’ve met with President Boric, Minister Marcel, and Governor Costa, and also with leading private sector firms. Throughout these meetings, we’ve discussed how the United States and Chile can jointly leverage the green transition to grow our economies and create opportunity.

It’s a pleasure to now be here in Antofagasta to learn about your important and innovative work to propel the green transition forward by generating economic growth in an environmentally sound and inclusive way.

I am glad that your efforts are being supported by the IDB Lab, where the U.S. is proud to be the second largest donor. I’d like to thank Irene Arias Hofman, IDB Lab’s CEO, for joining us today and for her leadership.

The Lab has evolved into a key innovation and venture hub that supports entrepreneurs throughout the region, with a specific emphasis on empowering poor and vulnerable populations. This is crucial work.

And it’s part of the Inter-American Development Bank’s broader work. The United States is proud to have joined with Chile and other IDB members to negotiate a capital increase for IDB Invest and advance a reform agenda at the Bank. Set to be approved by Bank Governors next week, one core objective is to increase the IDB Group’s focus on financing the green transition.

Thank you again for having me, and I look forward to the discussion.

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SANTIAGO – Today, U.S. Secretary of the Treasury Janet L. Yellen met with Chilean Finance Minister Mario Marcel in Santiago, Chile. They discussed the economic policy priorities of President Boric’s administration, including on the climate agenda, green finance, and the policy framework around critical minerals to support the energy transition. They discussed America and Chile’s close economic relationship — including a free trade agreement, a tax treaty, and extensive trade and investment flows — and also discussed opportunities to increase investment through close bilateral cooperation and avenues to support multilateral efforts to bring more catalytic financing to the region.

 

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As Prepared for Delivery

I’m very glad to have the opportunity to meet with all of you today. Thank you for joining.

I’m in Chile to emphasize the importance of the U.S.-Chile bilateral relationship, including the strong economic ties between our countries.

Our bilateral relationship is supported by the U.S.-Chile Free Trade Agreement, in place for 20 years, and the U.S.-Chile bilateral tax treaty, which entered into force just last year.

Making the most of these opportunities requires a strong enabling environment for the private sector. And this in turn can be fueled by the full and equal participation of women in the economy.

I know I share many experiences with those of you who have joined me for lunch today. We have all been the only woman in the room or at the decision-making table.

We all also know there is always more work to do to break down the legal, cultural, and regulatory barriers preventing women from full participation.

That is why the United States has been a strong supporter of inclusive programming at the multilateral development banks and works through funds such as the Women Entrepreneurs Finance Initiative, or We-Fi, which promotes women’s access to finance, mentoring, and networks and links investments to country-level policy, legal, and regulatory reforms that help create an equal playing field.

We also know that laws and policies are not enough. We need governmental agencies and companies to have conviction that gender equality will lead to a more just and productive society, and to actively work to close gender gaps.

The Central Bank of Chile has demonstrated this conviction by addressing the issues of diversity and gender equality head on.

In a relatively short time, I understand that 70 percent of young professionals interviewed are now women and that the Central Bank has almost doubled the percentage of women being hired into economic-related positions.

I know that women in Chile are still woefully underrepresented in senior management and across many economic sectors. Some of you here today have dedicated your careers to changing that by engaging in social, regulatory, political, and organizational transformation for gender equality.

Many of you are also leaders whose work beyond gender has helped fuel Chile’s economic success.

Today, I am eager to hear about you and your work, including your backgrounds, the paths you have taken, and the challenges you have faced, to get here today. I also want to hear about the ways many of you have been advancing gender equality in your workplaces and professions.

Thank you again for taking time to join me.

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