On Oct. 17, 2014 the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) released Guidance Related to the Provision of Humanitarian Assistnace by Not for Profit Non-Governmenal Organizations, intended to provide clarification for nonprofits seeking licenses for activities that would otherwise be prohibited by economic sanctions programs. The document states it “does not have the force of law” and does not include key proposals made by nonprofits, such as clear standards for nonprofit licenses and timelines for decisions on license applications. It does not address the needs of development, peacebuilding, human rights or other types of nonprofit programs abroad. The licensing process has been criticized by nonprofits for being slow and non-transparent. The Guidance is a step in the right direction but more will need to be done to address problems nonprofits have experienced, most glaringly seen in the Somalia famine of 2011. For an analysis see the Charity & Security Network statement calling for stronger administration policy to facilitate U.S. nonprofits’ ability to work in global hot spots.
The two-page document provides some clarification of the status quo in four areas:
Two additional paragraphs state OFAC’s policy on enforcement:
The Charity & Security Network submitted proposals to make the licensing process more accountable and transparent in July 2013, but despite several requests to meet and discuss the issues, Treasury never responded.
For background information see U.S. Civil Society Submission to the UN Human Rights Commission, Sept. 15, 2014, describing human rights problems with the licensing system.