OFAC Expands Sanctions Against Russia’s Energy and Technology Networks

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced a new round of sanctions targeting individuals, companies and networks connected with Russia, reinforcing Washington’s continued use of financial restrictions to limit activities considered to support the Russian state and its strategic interests.

The measures form part of the broader U.S. sanctions framework directed at Russia and underline the continuing importance of sanctions screening, beneficial ownership analysis and transaction monitoring for financial institutions and internationally active businesses.

The August 24 action is in fact broader and materially different from the Russia-focused headline above. It combines major Iran-related sanctions measures with further sanctions relief and list changes relating to Syria. According to OFAC, the package included new additions to the SDN List, a determination covering several sectors of the Iranian economy, changes to certain Iran-related general licences and updated guidance concerning sanctions risks linked to the Strait of Hormuz. At the same time, the U.S. removed Syria’s designation as a State Sponsor of Terrorism and made related changes affecting Hay’at Tahrir al-Sham (HTS) and Syria-related authorisations.

OFAC Launches Major Iran Sanctions Drive While Expanding Syria Sanctions Relief

The United States has announced a significant new package of sanctions and sanctions-relief measures, combining an extensive campaign against Iran's economic and military networks with further steps to ease restrictions connected with Syria.

The measures, announced by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) on 24 August 2026, demonstrate the increasingly dynamic nature of U.S. sanctions policy. While Washington has intensified pressure on Iranian individuals, companies and sectors of the economy, it has simultaneously taken further steps to remove restrictions that had applied to Syria and entities connected with its current governing structures.

The developments provide another reminder for financial institutions, multinational businesses and compliance professionals that sanctions programmes can change rapidly and in opposite directions at the same time.

A jurisdiction or entity may become subject to new restrictions, while another may benefit from the removal or relaxation of existing sanctions.

New Measures Target Iran

The Iran-related part of the announcement represents a substantial expansion of U.S. sanctions activity.

OFAC added numerous new individuals and entities to its Specially Designated Nationals and Blocked Persons List, targeting networks connected with Iranian military activities, procurement operations and petroleum and petrochemical trading.

The measures form part of what the U.S. Treasury described as an unprecedented campaign against the Iranian regime, combining sanctions targeting military-related activity with restrictions affecting commercial networks and economic sectors considered relevant to Iran's ability to generate revenue and obtain strategic goods.

The action also included a new determination under Executive Order 13902 covering the aviation, digital asset, gold, shipping and technology sectors of the Iranian economy.

The inclusion of digital assets is particularly notable from a compliance perspective.

Cryptocurrency and other digital assets have become an increasingly important area of sanctions risk because blockchain-based transactions can be conducted across borders and may involve wallets or service providers operating outside the traditional banking system.

OFAC's latest action reinforces the need for virtual asset service providers, exchanges, payment companies and financial institutions to maintain effective sanctions controls alongside conventional AML procedures.

General Licences Suspended and New Authorisations Issued

The announcement also included significant changes to Iran-related general licences.

OFAC suspended Iran General Licence F, which had related to certain services supporting professional and amateur sports activities and exchanges involving the United States and Iran.

It also suspended Iran General Licence G, concerning certain academic exchanges and the export or import of specified educational services.

Both suspensions took effect on 24 August 2026.

At the same time, OFAC issued new authorisations, including General Licence AA, relating to certain activities involving La Nivernaise de Raffinage SAS, and General Licence BB, which authorises the wind-down of certain transactions that had previously been permitted under the Iranian Transactions and Sanctions Regulations.

These simultaneous changes demonstrate why sanctions compliance cannot rely exclusively on a simple screening process.

A company may correctly identify that a counterparty is connected with a sanctioned jurisdiction but still need to determine whether a specific transaction is prohibited, authorised under a general licence or subject to a wind-down period.

The legal analysis can therefore depend not only on who is involved, but also on what activity is being conducted and when the transaction takes place.

Strait of Hormuz Sanctions Risks

OFAC also issued an updated Iran-related alert concerning sanctions risks associated with Iranian demands for passage through the Strait of Hormuz.

The Strait remains one of the world's most strategically important shipping routes, particularly for the transportation of oil, petroleum products and other commodities.

The updated alert highlights the potential sanctions exposure facing shipping companies, insurers, traders and financial institutions when dealing with transactions involving Iranian authorities, Iranian-controlled activities or demands that could trigger U.S. sanctions concerns.

For maritime businesses, the announcement reinforces the importance of understanding not only the vessel and its registered owner but also the wider transaction.

Relevant factors may include the cargo, charterers, insurers, ports, counterparties, beneficial owners and payment arrangements.

Syria Removed From State Sponsor of Terrorism Framework

While the United States intensified its measures against Iran, it continued moving in the opposite direction with Syria.

The U.S. Department of State removed Syria's designation as a State Sponsor of Terrorism, meaning Syria is no longer subject to the prohibitions that had applied under the Terrorism List Governments Sanctions Regulations and the related statutory framework identified by OFAC.

The change represents another significant step in the continuing recalibration of U.S. policy toward Syria.

Sanctions relief, however, should not automatically be interpreted as the complete removal of every U.S. restriction connected with Syria or Syrian persons.

Businesses still need to examine the specific sanctions programmes, designated persons and applicable regulations relevant to a particular transaction.

This distinction is important because sanctions against a country can consist of multiple overlapping legal authorities.

The removal of one designation or prohibition does not necessarily eliminate all restrictions affecting individuals, entities or activities connected with that jurisdiction.

HTS Removed From the SDN List

Another significant development involved Hay'at Tahrir al-Sham, commonly known as HTS.

According to OFAC, the U.S. Department of State revoked the designation of the group, also known as al-Nusrah Front, as a Specially Designated Global Terrorist organisation.

OFAC consequently removed HTS from the SDN List.

As a result of these changes, Syria General Licence 25, which had authorised certain transactions that could otherwise have been prohibited because of HTS's role in the Syrian government, was no longer considered necessary and was revoked.

OFAC also updated several related Frequently Asked Questions and removed another FAQ from its guidance.

The practical lesson for businesses is that sanctions-list removals are as important as new designations.

An outdated screening database can create significant operational problems in both directions.

Failure to identify a newly sanctioned person can expose an organisation to serious compliance risks. Continuing to treat a removed party as sanctioned can unnecessarily block legitimate business and create reputational or contractual issues.

Sanctions-screening systems therefore need to be updated promptly following both additions and removals.

Implications for Compliance Teams

The 24 August measures highlight several important areas for compliance departments.

First, organisations with Iran exposure should immediately consider whether their customers, suppliers, intermediaries, beneficial owners or transactions are affected by the new SDN designations.

Particular attention may be appropriate for businesses operating in or connected with:

• aviation;

• shipping;

• technology;

• gold and precious metals;

• petroleum and petrochemicals;

• digital assets;

• military procurement; and

• cross-border trade involving Iranian counterparties.

Second, organisations that relied on General Licences F or G need to assess the impact of their suspension and determine whether any activity previously conducted under those authorisations must now cease or be restructured.

Third, businesses with Syrian exposure should review the latest sanctions changes rather than relying on historical assumptions about the country's sanctions status.

The removal of Syria's State Sponsor of Terrorism designation and the delisting of HTS may create new possibilities for transactions that were previously subject to restrictions, but each transaction should still be assessed against the remaining applicable U.S. sanctions framework.

Beneficial Ownership Remains Critical

The latest OFAC action also reinforces the importance of beneficial ownership analysis.

Sanctioned individuals and organisations may operate through companies that do not themselves appear under an obvious sanctioned name.

Compliance teams therefore need to understand:

• who ultimately owns the company;

• who exercises control;

• whether sanctioned persons have direct or indirect interests;

• whether intermediaries are acting on behalf of designated parties; and

• whether the transaction ultimately benefits a sanctioned person or organisation.

This is particularly important in complex international transactions involving shipping companies, commodity traders, technology suppliers or entities incorporated in third countries.

A transaction can involve several layers of intermediaries, each of which may appear legitimate when considered separately.

Only by examining the wider ownership and transaction structure can an organisation determine the true sanctions exposure.

Digital Assets Face Increasing Sanctions Attention

The specific reference to the digital asset sector is another important development.

Virtual assets can be transferred quickly across borders and through decentralised or pseudonymous systems.

Although blockchain transactions may be technically traceable, identifying the individuals or organisations controlling particular wallets can be challenging.

OFAC has increasingly demonstrated that digital wallets and cryptocurrency-related infrastructure can form part of sanctions enforcement.

Financial institutions and virtual asset service providers should therefore ensure that sanctions controls extend beyond traditional customer-name screening.

Wallet screening, blockchain analytics and transaction-risk assessment may become increasingly important where businesses have material exposure to virtual assets.

A More Dynamic Sanctions Environment

Perhaps the most significant lesson from the August 24 announcement is the contrast between the two sides of the U.S. policy.

The United States has increased pressure on Iranian networks through new designations, sectoral measures and changes to existing authorisations.

At the same time, it has continued providing sanctions relief connected with Syria and removed HTS from the SDN List following changes in its terrorism designation.

The result is a sanctions environment in which compliance teams cannot simply assume that geopolitical risk always leads to more restrictions.

Sanctions policy can change in either direction.

A previously prohibited activity may become authorised. A general licence may be suspended. An organisation may be added to or removed from a sanctions list.

Businesses therefore need systems capable of responding quickly to regulatory changes.

Conclusion

OFAC's 24 August 2026 announcement represents a significant combination of new Iran-related sanctions and further Syria-related sanctions relief.

The Iran measures include new SDN designations, a determination affecting aviation, digital assets, gold, shipping and technology, changes to general licences and updated guidance concerning the Strait of Hormuz.

At the same time, the United States removed Syria's State Sponsor of Terrorism designation, removed HTS from the SDN List and revoked a Syria-related general licence that had become unnecessary following the change.

For compliance professionals, the message is clear: sanctions monitoring must be continuous, not periodic.

Organisations should screen for new designations, monitor removals and general-licence changes, reassess affected transactions and maintain an up-to-date understanding of beneficial ownership and transaction flows.

The latest OFAC action shows how quickly the regulatory landscape can change—and why an effective sanctions programme must be capable of identifying not only who has been added to a sanctions list, but also which restrictions have been lifted, suspended or replaced.

By fLEXI tEAM