The U.S. Treasury Department ("Treasury") Office of Foreign Assets Control ("OFAC") sanctioned eight Venezuelan individuals for "participating in anti-democratic activities." All assets of the individuals subject to U.S. jurisdiction are now frozen, and U.S. persons generally are prohibited from having any dealings with them.

The individuals are accused of supporting the "Constituent Assembly" in Venezuela, which was instituted under President Nicolás Maduro in order to "rewrite the Venezuelan constitution and dissolve state institutions." OFAC alleged that the Constituent Assembly was created to undermine democratic processes in Venezuela. Treasury Secretary Steven T. Mnuchin criticized President Maduro's regime:

"President Maduro swore in this illegitimate Constituent Assembly to further entrench his dictatorship, and continues to tighten his grip on the country. This regime's disregard for the will of the Venezuelan people is unacceptable, and the United States will stand with them in opposition to tyranny until Venezuela is restored to a peaceful and prosperous democracy."


According to OFAC, all of the sanctioned individuals were involved in organizing, creating or supporting the Constituent Assembly, which also has faced investigation related to alleged election fraud, human rights violations and other misconduct. The sanctions were issued pursuant to Executive Order 13692.

Commentary / James Treanor

In recent weeks, the United States increased economic pressure on Venezuela's leadership. In addition to OFAC's most recent action naming members of the Constituent Assembly to the Specially Designated Nationals and Blocked Persons List ("SDN List"), it also blocked dealings with President Nicolás Maduro, as well as a number of military and law enforcement officials, and current and former officials at Petroleos de Venezuela, S.A. ("PDVSA"), the state-owned oil company. Companies doing business in Venezuela should screen new and existing customers, suppliers and other business partners against OFAC's current SDN List, and should prepare for likely additional sanctions – including a total or partial ban on dealings with PDVSA.

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