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
Republicans push back against Democrats' claims that Trump intelligence pick Gabbard is compromised
- Democrats have cast doubts on Gabbard for her comments supportive of Russia and secret meetings, as a congresswoman, with Syria’s president, a close ally of the Kremlin and Iran
- Gabbard, a former US ational Guard officer and a former Democrat, also has suggested that Russia had legitimate security concerns in deciding to invade Ukraine, given its desire to join NATO
FORT LAUDERDALE, Florida: Republican senators pushed back on Sunday against criticism from Democrats that Tulsi Gabbard, Donald Trump’s pick to lead US intelligence services, is “compromised” by her comments supportive of Russia and secret meetings, as a congresswoman, with Syria’s president, a close ally of the Kremlin and Iran.
Sen. Tammy Duckworth, an Illinois Democrat and veteran of combat missions in Iraq, said she had concerns about Tulsi Gabbard, Trump’s choice to be director of national intelligence.
“I think she’s compromised,” Duckworth said on CNN’s “State of the Union,” citing Gabbard’s 2017 trip to Syria, where she held talks with Syrian President Bashar Assad. Gabbard was a Democratic House member from Hawaii at the time.
“The US intelligence community has identified her as having troubling relationships with America’s foes. And so my worry is that she couldn’t pass a background check,” Duckworth said.
Gabbard, who said last month she is joining the Republican Party, has served in the Army National Guard for more than two decades. She was deployed to Iraq and Kuwait and, according to the Hawaii National Guard, received a Combat Medical Badge in 2005 for “participation in combat operations under enemy hostile fire in support of Operation Iraqi Freedom III.”
Duckworth’s comments drew immediate backlash from Republicans.
“For her to say ridiculous and outright dangerous words like that is wrong,” Sen. Markwayne Mullin, a Republican from Oklahoma, said on CNN, challenging Duckworth to retract her words. “That’s the most dangerous thing she could say — is that a United States lieutenant colonel in the United States Army is compromised and is an asset of Russia.”
In recent days, other Democrats have accused Gabbard without evidence of being a “Russian asset.” Sen. Elizabeth Warren, a Massachusetts Democrat, has claimed, without offering details, that Gabbard is in Russian President Vladimir “Putin’s pocket.”
Mullin and others say the criticism from Democrats is rooted in the fact that Gabbard left their party and has become a Trump ally. Democrats say they worry that Gabbard’s selection as national intelligence chief endangers ties with allies and gives Russia a win.
Rep. Adam Schiff, a California Democrat just elected to the Senate, said he would not describe Gabbard as a Russian asset, but said she had “very questionable judgment.”
“The problem is if our foreign allies don’t trust the head of our intelligence agencies, they’ll stop sharing information with us,” Schiff said on NBC’s “Meet the Press.”
Gabbard in 2022 endorsed one of Russia’s justifications for invading Ukraine: the existence of dozens of US-funded biolabs working on some of the world’s nastiest pathogens. The labs are part of an international effort to control outbreaks and stop bioweapons, but Moscow claimed Ukraine was using them to create deadly bioweapons. Gabbard said she just voiced concerns about protecting the labs.
Gabbard also has suggested that Russia had legitimate security concerns in deciding to invade Ukraine, given its desire to join NATO.
Republican Sen. Eric Schmitt of Missouri said he thought it was “totally ridiculous” that Gabbard was being cast as a Russian asset for having different political views.
“It’s insulting. It’s a slur, quite frankly. There’s no evidence that she’s a asset of another country,” he said on NBC.
Sen. James Lankford, another Oklahoma Republican, acknowledged having “lots of questions” for Gabbard as the Senate considers her nomination to lead the intelligence services. Lankford said on NBC that he wants to ask Gabbard about her meeting with Assad and some of her past comments about Russia.
“We want to know what the purpose was and what the direction for that was. As a member of Congress, we want to get a chance to talk about past comments that she’s made and get them into full context,” Lankford said.
Uruguay’s center-left Orsi leads presidential runoff, exit polls say
MONTEVIDEO: Early exit polls in Uruguay’s presidential election indicated on Sunday that the center-left opposition candidate Yamandu Orsi is ahead of his conservative rival Alvaro Delgado in a closely fought second-round race that promises to be a photo finish.
Orsi had secured 49.5 percent of the vote, according to an exit poll from Cifra, followed by 45.9 percent for Delgado for the ruling coalition. Equipos Consultores also predicted an Orsi win with 49.0 percent of the vote and 46.6 percent for Delgado.
Far-right populist surprises in Romanian presidential election appearing set to enter runoff
- Thirteen candidates ran for the presidency in the European Union and NATO member country.
- Hard-right Georgescu has questioned NATO commitment to collective defense
BUCHAREST, Romania: A little-known, far-right populist took the lead in Romania’s presidential election Sunday, electoral data showed, and will likely face leftist Prime Minister Marcel Ciolacu in a runoff in two weeks, an outcome that rocked the country’s political landscape.
Calin Georgescu, who ran independently, led the polls with around 22 percent of the vote, while Ciolacu of the Social Democratic Party, or PSD, trailed at 20 percent. Elena Lasconi of the Save Romania Union party, or USR, stood at about 18 percent, and George Simion, the leader of the far-right Alliance for the Unity of Romanians, or AUR, took 14.1 percent.
After polls closed, 9.4 million people — about 52.4 percent of eligible voters — had cast ballots, according to the Central Election Bureau. The second round of the vote will be held Dec. 8.
Thirteen candidates ran for the presidency in the European Union and NATO member country. The president serves a five-year term and has significant decision-making powers in areas such as national security, foreign policy and judicial appointments.
Georgescu, 62, ran independently and was not widely known. He outperformed most local surveys, sending shockwaves through Romania’s political establishment as he ascended to poll position.
After casting his ballot on Sunday, Georgescu said in a post on Facebook that he voted “For the unjust, for the humiliated, for those who feel they do not matter and actually matter the most … the vote is a prayer for the nation.”
Cristian Andrei, a political consultant based in Bucharest, told The Associated Press that Georgescu’s unexpected poll performance appears to be a “large protest or revolt against the establishment.”
“The mainstream political parties have lost the connection with regular Romanians,” he said. “You don’t have strong candidates or strong leaders … there are weak candidates, weak leaders, and the parties in general are pretty much disconnected.”
Georgescu lacks an agenda, Andrei added, and has a vague and populist manifesto with positions that are “beyond the normal discourse.” His stances include supporting Romanian farmers, reducing dependency on imports, and ramping up energy and food production.
According to his website, Georgescu holds a doctorate in pedology, a branch of soil science, and held different positions in Romania’s environment ministry in the 1990s. Between 1999 and 2012, he was a representative for Romania on the national committee of the United Nations Environment Program.
Videos posted to his popular TikTok account, where he has amassed 1.6 million likes, depict him attending church, doing judo, running around an oval track, and speaking on podcasts.
Ahead of Sunday’s vote, many had expected to see Simion, a vocal supporter of US President-elect Donald Trump, face Ciolacu in the second round. He campaigned for reunification with Moldova, which this year renewed a five-year ban on him entering the country over security concerns, and he is banned for the same reason from neighboring Ukraine.
Ecaterina Nawadia, a 20-year-old architecture student, said she voted for the first time in a national election on Sunday and hoped young people turn out in high numbers.
“Since the (1989) revolution, we didn’t have a really good president,” she said. “I hope most of the people my age went to vote … because the leading candidate is not the best option.”
Romania will also hold parliamentary elections on Dec. 1 that will determine the country’s next government and prime minister.
As the ballots were still being counted, Simion said he congratulated Georgescu and that he was “Very happy that approximately 40 percent of the votes of Romanians went toward the sovereign option” and would be in the second round.
Andrei, the political consultant, said Romania’s large budget deficit, high inflation, and an economic slowdown could push more mainstream candidates to shift toward populist stances amid widespread dissatisfaction.
Ciolacu told the AP before the first-round vote that one of his biggest goals was “to convince Romanians that it is worth staying at home or returning” to Romania, which has a massive diaspora spread throughout EU countries.
Other candidates included former NATO deputy general secretary Mircea Geoana, who ran independently and obtained about 6 percent; and Nicolae Ciuca, a former army general and head of the center-right National Liberal Party, which is currently in a tense coalition with the PSD — who stood at 9.3 percent.
Geoana, a former foreign minister and ambassador to the United States, told the AP before Sunday’s vote that he believed his international experience would qualify him above the other candidates.
Lasconi, a former journalist and the leader of the USR, said she sees corruption as one of the biggest problems Romania faces and that she supports increased defense spending and continued aid to Ukraine.
Somalia says 24 people have died after 2 boats capsized in the Indian Ocean
- A delegation led by the Somali ambassador to Ethiopia is scheduled to travel to Madagascar on Monday to investigate the incident and coordinate efforts to help survivors
MOGADISHU, Somalia: Twenty-four people died after two boats capsized off the Madagascar coast in the Indian Ocean, Somalia’s government said Sunday.
Somalia’s Foreign Minister Ahmed Moalim Fiqi said 46 people were rescued.
“We are working tirelessly to ensure the survivors are brought back home safely and provided with the necessary care,” he said.
Most of the passengers were young Somalis, and their intended destination remains unclear. Many young Somalis embark every year on dangerous journeys in search of better opportunities abroad.
A delegation led by the Somali ambassador to Ethiopia is scheduled to travel to Madagascar on Monday to investigate the incident and coordinate efforts to help survivors.
Fiqi also said Sunday that Somalia’s ambassador to Morocco will look into a separate report of Somali youth stranded on Morocco’s coastline. It is not clear when the Morocco incident took place and Fiqi did not provide details.
The UN migration agency has in the past raised concern over rising cases of irregular migration from the Horn of Africa countries as people flee from conflict and drought.
In April, 38 migrants died and 22 others were rescued from a shipwreck off Djibouti on a popular route to Yemen. Most of those rescued were of Somali and Ethiopian nationalities.
‘It wasn’t just about me’: Imam honored for unity efforts after UK race riots
- Three children were killed, and 10 others — eight of whom were children — were injured in an attack in Southport
- In days following attack, crowds gathered to demonstrate outside Liverpool mosque
LONDON: A Muslim leader in the UK has been recognized for his efforts to foster unity after embracing protesters outside Liverpool’s Abdullah Quilliam Mosque in the wake of a knife attack in the northern English town of Southport in July.
Three children were killed, and 10 others — eight of whom were children — were injured in the attack.
Axel Rudakubana was detained and charged with three counts of murder, 10 counts of attempted murder, and possession of a bladed article.
In the days following the attack, crowds gathered to demonstrate outside the mosque in Liverpool after misinformation was spread online about the knife attack suspect.
Imam Adam Kelwick described how he approached protesters outside the mosque once tensions had eased, offering food, handshakes, and conversations.
Photographs of the peaceful exchanges, which included sharing food and even hugs, went viral, symbolizing a moment of reconciliation.
After receiving the Most Impactful Imam accolade at the British Beacon Mosque Awards, Kelwick said: “It wasn’t just about me. I’m dedicating this award to the people of Liverpool, who really came together during difficult times.”
He added: “Some of the most vocal protesters, after everyone else had gone, came inside the mosque for a little tour.”
The imam praised Liverpool’s residents for their unity.
“For those who knew better than to blame a whole religion for the evil actions of one person, for those who came to defend our mosque, and even for those who protested but later reflected and opened their hearts,” he said.
Kelwick, also a humanitarian aid worker and long-time volunteer, expressed gratitude for the award, which recognizes the contributions of mosques and leaders across the UK.
