TITLE: United States Treasury Department Office of Foreign Assets Control Issues Amended Venezuela-Related General License
BODY:
On August 3, 2026, the Office of Foreign Assets Control (OFAC), a division of the U.S. Department of the Treasury, issued Venezuela-related General License 5Y, "Authorizing Certain Transactions Related to the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond on or After September 17, 2026."
The amended general license permits specified transactions involving the Petróleos de Venezuela, S.A. (PDVSA) 2020 8.5 percent bond, effective from September 17, 2026 onwards. This authorization represents a modification to OFAC's existing Venezuela sanctions regime, which has been in place to restrict financial dealings with designated Venezuelan entities and individuals. The issuance of this general license provides regulated entities, financial institutions, and other market participants with explicit authorization to engage in otherwise prohibited transactions involving this specific PDVSA bond instrument, subject to the terms and conditions outlined in the license.
Alongside the general license, OFAC issued an amended Venezuela-related Frequently Asked Question (FAQ 595), which provides clarification and guidance to stakeholders regarding the implementation and application of the new authorization. This FAQ addresses common questions and operational considerations for entities seeking to comply with the amended sanctions framework.
The general license and accompanying FAQ are available on OFAC's official website. Entities engaged in international finance, investment management, and sanctions compliance should review the full terms of General License 5Y and FAQ 595 to ensure adherence to the updated regulatory requirements. The effective date of September 17, 2026 marks the commencement of permitted transactions under this authorization.