On August 6, 2024, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Paraguayan tobacco company Tabacalera del Este S.A. (Tabesa) for providing financial support to Paraguay’s former president, Horacio Manuel Cartes Jara. Cartes was sanctioned by OFAC on January 26, 2023, for his involvement in corruption. The designation of Tabesa falls under Executive Order (E.O.) 13818, which implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption globally.
Previously, OFAC identified Tabesa on its Specially Designated Nationals and Blocked Persons (SDN) List as an entity in which Cartes owned a significant interest. Although Cartes no longer owns Tabesa following a sales agreement to acquire his shares in the company, Tabesa has continued making substantial payments to Cartes despite his OFAC designation.
Tabesa is now designated for materially assisting or providing support to Cartes, whose property and interests are blocked under E.O. 13818. Activities related to Tabesa pursuant to General License 7 under the Global Magnitsky Sanctions Regulations remain authorized.
As a result of this action, all property and interests in property belonging to the designated entity that are within U.S. jurisdiction remain blocked and must be reported to OFAC. Entities owned by one or more blocked persons also remain subject to these restrictions unless authorized by a specific license issued by OFAC.
Financial institutions and other entities engaging with sanctioned individuals or entities risk exposing themselves to sanctions or enforcement actions. Prohibitions include making contributions or providing funds, goods, or services benefiting any designated person or receiving such contributions from them.
Executive Order 13818 was issued on December 20, 2017, enhancing measures against human rights abuses and corruption that threaten international stability. The United States aims to impose significant consequences on those who commit serious human rights abuses or engage in corruption while protecting its financial system from exploitation by such individuals.
OFAC’s sanctions derive their power not only from adding persons to the SDN List but also from removing them consistent with legal standards when appropriate. The ultimate goal is behavioral change rather than punishment. Information about seeking removal from an OFAC list can be found in OFAC’s Frequently Asked Question 897.
For further details about today’s designation:
[Link]
###
