WASHINGTON: As Congress considers a controversial nuclear deal with Iran, the US Treasury agency charged with implementing related financial sanctions is at risk of being overwhelmed by its expanding mission, former employees and lawyers who deal with the office say.
The agency, the Office of Foreign Assets Control, is responsible for enforcing a broad array of sanctions and for licensing American companies wishing to do business with sanctioned countries. Both roles will be especially critical if some restrictions are relaxed under the proposed nuclear agreement with Iran.
But a growing reliance on sanctions to address situations as varied as Russia’s incursions into Ukraine, cyberttacks on US businesses, and jihadist financing has increased pressure on the agency, which is being asked to police a bigger beat while staffing and budgets have not kept up.
Dozens of OFAC officials have left the agency in the past four years for better-paying jobs at law offices, consulting firms and banks, which have aggressively built up their compliance departments in response to big fines for sanctions violations.
“OFAC is left in a position where they can only deal with what’s five inches in front of their faces,” said Erich Ferrari, a Washington-based sanctions lawyer.
The agency has prided itself on the firepower of its small and highly specialized staff of about 200, who collectively oversee more than 35 sanctions programs. But the size of the agency has also meant that each departure has an outsized impact, former officials say.
“OFAC is a small organization that is among the leanest, most productive I’ve seen anywhere in government,” said Elizabeth Rosenberg, a former senior adviser at the Treasury Department who left in 2013. “There’s little redundancy.”
The most high-profile recent departures have included Lorraine Lawlor, OFAC’S former chief of compliance programs who left in 2012 for Wells Fargo ; Sean Thornton, former chief counsel who joined French bank BNP Paribas in 2014; Eytan Fisch, former assistant director for policy who left this year for law firm Skadden; and Adam Smith, former senior adviser to the director who left in July for law firm Gibson Dunn.
At least 25 other sanctions compliance officers, lawyers, and others have left OFAC since 2011 for companies including HSBC, Bank of America, Western Union, PayPal, and Credit Suisse, according to a review of LinkedIn profiles.
To be sure, the recruitment of regulators by business is a constant in Washington, and there is no indication that the rate of departures at OFAC is greater than at other agencies. But the impact is particularly acute given that the agency’s staff and budget has grown little in recent years, while its workload has increased.
At one point, OFAC staff were holding up to five happy hours each month for departing colleagues, said David Brummond, a former sanctions adviser who left OFAC in 2014 and is now with law firm DLA Piper.
“It just became funny,” Brummond said. “You had to schedule it into your social calendar.”
Treasury did not provide details on the agency’s staffing levels or comment on whether the agency is short-staffed for the work it does.
“OFAC is comprised of a staff of talented individuals, and our sanctions have become an increasingly effective national security and foreign policy instrument thanks in large measure to the careful work of our staff,” the Treasury said in a statement. BIGGER PAYDAY In some ways the problems faced by OFAC are born of the US government’s success, in winning high-profile penalties against banks for prohibited transactions with Iran, Sudan and other sanctioned countries.
Banks have responded by beefing up compliance departments and tapping senior OFAC officials to lead them. For example, shortly after BNP Paribas agreed to pay US authorities $8.9 billion in 2014 to resolve claims it violated sanctions, it hired Thornton.
Some of the departed officials had served for decades and took with them considerable institutional knowledge of how sanctions have evolved.
OFAC employees, whose salaries top out at around $160,000 per year, can easily double or triple their pay in the private sector. Senior OFAC officials can command up to $1.2 million per year, said a senior compliance official at a large US bank.
Since 2011, the United States has implemented 29 sanctions-related executive orders, according to a Reuters tally, almost double the number from 2006 to 2010 when there were 16 such orders.
OFAC staff have numbered about 170 to 200 for at least the last five years, former officials say. In fiscal 2013, the last year for which information is public, OFAC had a budget of about $31 million, compared to $29 million in 2009, documents show.
Sanctions have also become increasingly complex. The measures imposed on Russia in 2014, sanctions experts say, are especially intricate and target specific activities rather than broad categories of business. And while sanctions ban most US trade with Iran, they include exceptions that allow humanitarian, medical and other business dealings. Such business often relies on the granting of licenses, which lawyers said can take up to a year or more to acquire.
Ferrari said a license he requested for an Iranian animal shelter to raise funds in the United States took 18 months and three separate applications before being granted.
Businesses sometimes give up in frustration after long waits for OFAC’s go-ahead or guidance, lawyers say.
That could present a risk for implementation of the Iran deal, experts say. Without clear and quick guidance, businesses and banks will likely pull back from trade with Iran, even in areas permitted if sanctions are eased. In turn, if Iran did not get the relief it expected from eased sanctions, it would have less incentive to abide by the terms of the deal.
Brummond said it is already a challenge to get agency staff on the phone to give guidance on new sanctions language and what direction regulations might take.
“Clients want the answer whether or not OFAC answers the phone. I try to explain to the client that I’ve left my fourth voice mail,” Brummond said. “I know who I’m calling on the other side, and I know how buried they are.”
US agency overseeing sanctions faces brain drain, added work
US agency overseeing sanctions faces brain drain, added work
As Trump declares ‘Gulf of America,’ US enters name wars
- “In claiming the right to force others to use the name of his choosing, Trump is asserting a sort of sovereignty over an international body of water,” Gerry Kearns, a professor of geography at Maynooth University in Ireland
WASHINGTON: For years, as disputes over names on the map riled up nationalist passions in several parts of the world, US policymakers have watched warily, trying to stay out or to quietly encourage peace.
Suddenly, the United States has gone from a reluctant arbiter to a nomenclature belligerent, as President Donald Trump declared that the Gulf of Mexico will henceforth be called the “Gulf of America.”
In an executive order signed hours after he returned to the White House, Trump called the water body an “indelible part of America” critical to US oil production and fishing and “a favorite destination for American tourism and recreation activities.”
The term Gulf of America was soon used by the US Coast Guard in a press release on enforcing Trump’s new crackdown on migrants, as well as Florida’s Republican governor, Ron DeSantis, when discussing a winter storm.
Deep-sea ecologist Andrew Thaler said Trump’s declaration was “very silly” and would likely be ignored by maritime professionals.
A president has the authority to rename sites within the United States — as Trump also did.
“The Gulf of Mexico, however, is a body of water that borders several countries and includes pockets of high seas,” said Thaler, founder of Blackbeard Biologic Science and Environmental Advisers.
“There really isn’t any precedent for a US president renaming international geologic and oceanographic features. Any attempt to rename the entire Gulf of Mexico would be entirely symbolic,” he said.
Mexican President Claudia Sheinbaum has cheekily suggested calling the United States “Mexican America,” pointing to a map from well before Washington seized one-third of her country in 1848.
“For us it is still the Gulf of Mexico and for the entire world it is still the Gulf of Mexico,” she said Tuesday.
The International Hydrographic Organization, set up a century ago, works to survey the world’s seas and oceans and is the closest to an authority on harmonizing names for international waters.
The United Nations also has an expert group on geographical names, which opens its next meeting on April 28.
Martin H. Levinson, president emeritus of the Institute of General Semantics, said it was unknown how much political capital Trump would invest in seeking name recognition by other countries.
“Does he really want to strong-arm them for something as minor as this?” Levinson asked.
“I think the political benefit is to the domestic audience that he’s playing to — saying we’re patriotic, this is our country, we’re not going to let the name be subsumed by other countries,” he said.
He doubted that other countries would change the name but said it was possible Google Earth — a more ready reference to laypeople — could list an alternative name, as it has in other disputes.
Among the most heated disputes, South Korea has long resented calling the body of water to its east the Sea of Japan and has advocated for it to be called the East Sea.
The United States, an ally of both countries, has kept Sea of Japan but Korean-Americans have pushed at the local level for school textbooks to say East Sea.
In the Middle East, Trump in his last term angered Iranians by publicly using the term Arabian Gulf for the oil-rich water body historically known as the Arabian Gulf but which Arab nationalists have sought to rename.
The United States has also advocated maintaining a 2018 deal where Greece agreed for its northern neighbor to change its name to North Macedonia from Macedonia, but Athens ulitmately rejected due to historical associations with Alexander the Great.
Gerry Kearns, a professor of geography at Maynooth University in Ireland, said that Trump’s move was part of the “geopolitics of spectacle” but also showed his ideological bent.
With Trump also threatening to take the Panama Canal and Greenland, Trump is seeking to project a new type of Monroe Doctrine, the 1823 declaration by the United States that it would dominate the Western Hemisphere, Kearns said.
“Names work because they are shared; we know we are talking about the same thing,” he wrote in an essay.
“In claiming the right to force others to use the name of his choosing, Trump is asserting a sort of sovereignty over an international body of water.”
Trumps’ top diplomat Rubio affirms ‘ironclad’ US commitment to Philippines amid China threat
- Marco Rubio discussed China's “dangerous and destabilizing actions in the South China Sea” in a call with his Philippine counterpart, says State Department spokeswoman
WASHINGTON: US Secretary of State Marco Rubio said Wednesday the United States under President Donald Trump remained committed to the Philippines’ defense, as tensions simmer with Beijing in the South China Sea.
In a call with his Philippine counterpart Enrique Manalo, Rubio “underscored the United States’ ironclad commitments to the Philippines under our Mutual Defense Treaty,” State Department spokeswoman Tammy Bruce said.
The Philippines has been embroiled in wrangles at sea with China in the past two years and the two countries have faced off regularly around disputed features in the South China Sea that fall inside Manila’s exclusive economic zone.
China claims most of the strategic waterway despite an international tribunal ruling that its claim lacked any legal basis.
Rubio’s call followed his hosting of counterparts from Australia, India and Japan in the China-focused “Quad” forum on Tuesday, the day after President Donald Trump returned to the White House. The four recommitted to working together.
Quad members and the Philippines share concerns about China’s growing power and analysts said Tuesday’s meeting was designed to signal continuity in the Indo-Pacific and that countering Beijing will be a top priority for Trump.
In the call with Manalo, Rubio “underscored the United States’ ironclad commitments to the Philippines” under their Mutual Defense Treaty and discussed ways to advance security cooperation, expand economic ties and deepen regional cooperation, the statement said.
Just ahead of Trump’s swearing-in, the Philippines and the United States carried out their fifth set of joint maritime exercises in the South China Sea since launching the joint activities in 2023.
Security engagements between the allies have soared under Philippine President Ferdinand Marcos Jr., who has pivoted closer to Washington and allowed the expansion of military bases that American forces can access, including facilities facing the Chinese-claimed but democratically-governed island of Taiwan.
Visiting the Philippines last week, Japanese Foreign Minister Takeshi Iwaya said a trilateral initiative to boost cooperation launched by Japan, the US and the Philippines at a summit last year would be strengthened when the new US administration took over in Washington.
New explosive wildfire erupts near Los Angeles
- Meteorologists say strong winds and low humidity create conditions ripe for rapid fire spread
CASTAIC, United States: A new wildfire erupted north of Los Angeles on Wednesday, exploding in size and sparking orders for tens of thousands of people to evacuate in a region already staggering from the effects of huge blazes.
Ferocious flames were devouring hillsides near Castaic Lake, spreading rapidly to cover more than 5,000 acres (2,000 hectares) in just a few hours.
The fire was being fanned by strong, dry Santa Ana winds that were racing through the area, pushing a vast pall of smoke and dangerous embers ahead of the flames.
Evacuations were ordered for 31,000 people around the lake, which sits around 35 miles (56 kilometers) north of Los Angeles, and close to the city of Santa Clarita.
“I’m just praying that our house doesn’t burn down,” one man told broadcaster KTLA as he packed his car.
The fire came with the greater Los Angeles area still suffering after two enormous fires that killed more than two dozen people and destroyed thousands of structures.
Robert Jensen, of the Los Angeles County Sheriff’s Department, urged everyone in the impacted area of the new blaze — dubbed the Hughes Fire — to leave immediately.
“We’ve seen the devastation caused by people failing to follow those orders in the Palisades and Eaton fires,” he said.
“I don’t want to see that here in our community as well. If you’ve been issued an evacuation order, please get out.”
Television footage showed police driving around neighborhoods urging people to leave.
Los Angeles County Sheriff Robert Luna said the Pitchess Detention Center in Castaic was under an evacuation order, and around 500 inmates were being moved to a neighboring facility.
He told broadcaster KCAL9 that around 4,600 inmates being held at other jails in the area were sheltering in place, but buses were on hand in case conditions changed and they needed to be moved.
Melissa Camacho, an attorney with the American Civil Liberties Union, noted the rights group’s opposition to “the expansion of the jail system especially in dangerous fire zones,” adding that “we are gravely concerned for the safety of people incarcerated in those jails.”
California Highway Patrol said the fire was impacting traffic on the I5 freeway, with a section of the road — which runs the length of the US West Coast — shuttered.
Helicopters and planes were on the scene dropping water and retardant on the blaze.
That fleet included two Super Scoopers, enormous amphibious planes that can carry hundreds of gallons (liters) of water.
Crews from Los Angeles County Fire Department and Angeles National Forest were also attacking the blaze from the ground.
California Governor Gavin Newsom, who has been the target of criticism by President Donald Trump over his handling of the Los Angeles fires, said he had ordered officials into action.
“State resources have been deployed to the Hughes Fire in the Angeles National Forest to assist in the federal response,” he said.
“We will continue to monitor the situation closely and provide the federal government with whatever it needs to extinguish this fire.”
It was not immediately clear what sparked the fire, but it occurred during red flag fire conditions — when meteorologists say strong winds and low humidity create conditions ripe for rapid fire spread.
Human activity, including the unchecked burning of fossil fuels, is changing Earth’s climate, increasing average global temperatures and altering weather patterns.
Even though January is the middle of the region’s rainy season, Southern California has not seen any significant precipitation in around eight months, leaving the countryside tinder dry.
Nearly 6 million Somalis need aid this year: UN
- Somalia is currently facing “widespread dry conditions following poor October to December rains,” says UN humanitarian agency OCHA said
UNITED NATIONS: Nearly six million people in Somalia, almost a third of the country’s population, need humanitarian aid this year, the United Nations said Wednesday as it launched a $1.43 billion funding appeal.
The Horn of Africa nation is one of the world’s poorest, enduring decades of civil war, a bloody insurgency by the Al-Qaeda-linked Al-Shabab, and frequent climate disasters.
“Somalia continues to face a complex, protracted humanitarian crisis,” a statement from the UN humanitarian agency OCHA said, citing a range of issues from conflict to “climate shocks.”
The country is currently facing “widespread dry conditions following poor October to December rains,” OCHA said.
The funding appeal launched Monday with the Somali government aims “to support some 4.6 million of the most vulnerable people in the country,” it added.
Europe posts record year for clean energy use as Trump pulls US toward fossil fuels
- With another 24% of electricity in the bloc coming from nuclear power, nearly 3/4 of EU's electricity is considered clean energy
- In contrast, economic giants China and the US still get nearly 2/3 of their energy from carbon-polluting fossil fuels like coal, oil and gas
A record 47 percent of the European Union’s electricity now comes from solar and other renewables, a report Thursday said, in yet another sign of the growing gap between the bloc’s push for clean energy and the new US administration’s pursuit of more fossil fuels.
Nearly three-quarters of the EU’s electricity doesn’t emit planet-warming gases into the air — with another 24 percent of electricity in the bloc coming from nuclear power, a report released by the climate energy think tank Ember found. This is far higher than in countries like the United States and China, where nearly two-thirds of their energy is still produced from carbon-polluting fossil fuels like coal, oil and gas. Around 21 percent of the US’s electricity comes from renewable sources.
Experts say they’re encouraged by Europe’s fossil fuel reductions, particularly as the US looks set to increase its emissions as its new president pledges cheaper gas prices, has halted leases for wind projects and pledged to revoke Biden-era incentives for electric vehicles.
“Fossil fuels are losing their grip on EU energy,” said Chris Rosslowe, an energy expert at Ember. In 2024, solar power generated 11 percent of EU electricity, overtaking coal which fell below 10 percent for the first time. Clean wind power generated more electricity than gas for the second year in a row.
Green policies and war drive clean energy growth
One reason for Europe’s clean power transition moving at pace is the European Green Deal, an ambitious policy passed in 2019 that paved the way for climate laws to be updated. As a result of the deal, the EU made their targets more ambitious, aiming to cut 55 percent of the region’s emissions by the end of the decade. The policy also aims to make Europe climate neutral — reducing the amount of additional emissions in the air to practically zero — by 2050.
Hundreds of regulations and directives in European countries to incentivize investment in clean energy and reduce carbon pollution have been passed or are in the process of being ratified across Europe.
“At the start of the Deal, renewables were a third and fossil fuels accounted for 39 percent of Europe’s electricity,” Rosslowe said. “Now fossils generate only 29 percent and wind and solar have been driving the clean energy transition.” The amount of electricity generated by nuclear energy has remained relatively stable in the bloc.
Russia’s invasion of Ukraine has also spurred the move to clean energy in Europe. Gas prices skyrocketed — with much of Europe’s gas coming from Russia becoming unviable — forcing countries to look for cheaper, cleaner alternatives. Portugal, Netherlands and Estonia witnessed the highest increase in clean power in the last five years.
Europe cements its place as a clean energy leader
The transition to clean power helped Europe avoid more than $61 billion worth of fossil fuel imports for generating electricity since 2019.
“This is sending a clear message that their energy needs are going to be met through clean power, not gas imports,” said Pieter de Pous, a Brussels-based energy analyst at European think tank E3G. De Pous said the EU’s origins were “as a community of coal and steel because those industries were so important,” but it is now rapidly becoming a “community of solar and wind power, batteries and smart technologies.”
Nuclear growth in the bloc, meanwhile, has slowed. Across the European Union, retirements of nuclear plants have outpaced new construction since around the mid-2000s, according to Global Energy Monitor.
As President Trump has pulled the United States out of the Paris Agreement aimed at curbing warming and is pursuing a “drill, baby, drill” energy policy, Rosslowe said the EU’s leadership in clean power becomes all the more important. “It’s about increasing European energy independence, and it’s about showing this climate leadership,” he said.
On Tuesday, EU chief Ursula von der Leyen said: “Europe will stay the course, and keep working with all nations that want to protect nature and stop global warming.”
