By PAUL O’DONOGHUE, Senior Correspondent
THE U.S. Treasury has warned that sanctioned individuals are using “sham transactions” to retain control of assets while appearing to divest ownership, according to a new advisory from the Office of Foreign Assets Control (OFAC).
OFAC said sham transactions occur when blocked persons arrange transfers that “conceal—rather than genuinely extinguish—a continuing interest in property”. In these cases, they transfer assets “on paper only” while keeping their underlying interest.
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