The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury has reiterated that “non-U.S. persons” could be sanctioned for providing support to the Mohameds.
The U.S. entity reiterated this position in a letter to the lawyers of Nazar and his son, Azruddin Mohamed.
“Unless exempt or otherwise authorised by a general or specific license from OFAC, transactions with sanctioned persons by U.S. persons are generally prohibited, and non-U.S. persons could also face sanctions risk for certain activities involving sanctioned persons, such as providing material support to them,” OFAC stated in correspondence shared by the Mohameds on Sunday.
The Sanctions
The OFAC on June 11, 2024, announced the imposition of sanctions against the Mohamed’s family, specifically targeting Nazar, Azruddin and their businesses, namely Mohamed’s Enterprise, Hadi’s World, and Team Mohamed’s Racing.
These sanctions were connected to gold smuggling and corruption. Because of these sanctions from the U.S. body, the Guyana Government took steps to protect the country by rescinding the business licences of the Mohameds and their bank accounts were closed.
Following these sanctions, Azruddin launched a political party – We Invest in Nationhood (WIN) – of which he is the presidential candidate and has received the full support of his father and the rest of the family. His party has been approved by the elections body to contest the September 1, 2025, general and regional elections.
Bank Closures
At least four local banks and one foreign bank have closed the accounts of WIN candidates over concerns about their association with the party leader. Banks were compelled to review their compliance measures in line with international banking regulations, particularly those mandated by Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws, which are designed to prevent the use of illicit funds.
Azruddin described the bank closures as “unjustified and politically motivated”; his lawyers subsequently wrote to OFAC seeking clarification on the issue. In the full response now shared publicly by WIN, OFAC said there would be ramifications for individuals involved in any transactions with the sanctioned individual, but not for mere association.
In the letter responding to WIN, the U.S. body said any implications of transacting with a political party led by an individual sanctioned by OFAC, or with members of such a political party, would depend on whether the sanctioned individual is involved in the transaction.
OFAC also reaffirmed the ability of local banks to act based on their own due diligence.
“Please be advised that OFAC will not direct an entity to conduct activity that undermines its policies and procedures,” OFAC said.
The closures are for candidates of the party, whose names have been submitted to the Guyana Elections Commission (GECOM) in keeping with election procedures. In financial regulation, such individuals are deemed “politically exposed persons” or PEP for short and attract enhanced due diligence.
Party representatives have threatened legal action against the banks since July. WIN also called for a boycott of the local banks and other associated businesses.
The Mohameds and Venezuela
Last week, the Minister of Foreign Affairs and International Cooperation, Hugh Todd, revealed that he had cause to summon the Venezuelan Ambassador to Guyana following reports that the Mohameds have been frequenting the embassy of the Spanish-speaking country.
According to Todd, the Venezuelan diplomat confirmed that the Mohameds applied for a visa. The government is taking the issue seriously, given the strained relationship with Venezuela, their claims to two-thirds of Guyana’s territory and acts of aggression against the country.
Vice President, Dr Bharrat Jagdeo, recently urged the authorities to explore a more “deep-seated” reason for the Mohameds visiting the Venezuelan Embassy, hinting that it could be more than visas.
Jagdeo, last week, challenged the Mohameds to disprove revelations that Nazar visited the Venezuelan Embassy and said he would stake his entire political career on this. The Vice President also noted that there is video evidence of the Mohameds at the embassy in Georgetown.
Nazar, however, has refused to give a direct answer to whether he visited the embassy, instead accusing the People’s Progressive Party/Civic (PPP/C) government of orchestrating a political smear campaign against his son, Azruddin.
An article in Sunday’s edition of the Stabroek News quoted Nazar as saying that Jagdeo should provide the proof.
The Mohameds have been accused of having ties to the Nicolas Maduro government by U.S. Congressmen.
Guyana has been locked in a border controversy with Venezuela, and the International Court of Justice is currently considering the substantive merits of Guyana’s case to confirm the 1899 Arbitral Award as a full, final, and perfect settlement of the border dispute.
Venezuela recently rejoined the proceedings after boycotting earlier stages, a move Guyana has publicly welcomed.
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