OFAC designates Egyptian and Jordanian Muslim Brotherhood branches as SDGTs

The U.S. Department of the Treasury’s Office of Foreign Assets Control on Jan. 13 designated the Egyptian and Jordanian branches of the Muslim Brotherhood as Specially Designated Global Terrorists (SDGTs) under Executive Order 13224, as amended. The action was taken in coordination with the Department of State.

OFAC said it designated the Egyptian Muslim Brotherhood and the Jordanian Muslim Brotherhood for materially assisting, sponsoring or providing financial, material or technological support, or goods or services, to or in support of Hamas.

In a concurrent action, the State Department designated the Lebanese Muslim Brotherhood, also known as al-Jamaa al-Islamiyah, as a Foreign Terrorist Organization under Section 219 of the Immigration and Nationality Act and as an SDGT under E.O. 13224, as amended. The State Department also designated Muhammad Fawzi Taqqosh, identified as the secretary general of the Lebanese Muslim Brotherhood, as an SDGT under E.O. 13224, as amended.

OFAC said that as a result of its action, all property and interests in property of the designated or blocked persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. OFAC said entities owned, directly or indirectly, individually or in the aggregate, 50% 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 said its 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 blocked persons.

OFAC said violations of U.S. sanctions may result in civil or criminal penalties and that OFAC may impose civil penalties on a strict liability basis. OFAC also said engaging in certain transactions involving the persons designated on Jan. 13 may risk the imposition of secondary sanctions on participating foreign financial institutions, including restrictions related to correspondent or payable-through accounts in the United States.