Update on Russia-related sanctions and how they may affect you
On May 8, 2022 the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) released new sanctions against Russia, and new regulations for Registered Agents, specifically, which will require all American Registered Agents to cease performing services and accepting payments from Russian clients.
This OFAC regulation comes with strict penalties for Agents who try to carry-on surreptitiously or deceptively. They also describe the types of American service companies that are affected and the types of services that are prohibited. Clearly, forming entities and serving as a Registered Agent are specifically prohibited.
These new prohibitions go into effect on June 7, 2022. This means that Harvard Business Services, Inc. can no longer provide company formation services or Delaware Registered Agent Services to clients who reside in Russia or have Russian citizenship. There is a service wind-down period between June 7, 2022 and July 7, 2022 to stop providing those services and cease all operations providing new formations or Registered Agent services to Russian-owned U.S. entities.
We at Harvard Business Services, Inc will follow the new requirements and will comply with the sanctions introduced by the U.S. Department of Treasury. This applies to every single American Registered Agent and they are legaly required to comply with the actions taken by the Department of Treasury . If some don’t, or try to find a way around the requirements, they will face strict penalties and their clients may also face fines and/or other sanctions.
Here is the U.S. Treasury’s Press Release
Here is the Department of Treasury’s Russia Sanctions FAQ
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such sources content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.