What is the legal definition of affiliates?

Affiliate means, in relation to a person, any company or other entity, whether or not with legal personality, which directly or indirectly controls, is controlled by or is under joint control with that person.

What is an affiliate of an entity?

An affiliated entity is an organization that directly or indirectly controls another entity, or is directly or indirectly controlled by another entity, or which is under common control alongside another entity. Thus, an affiliated entity could be a parent company or a subsidiary company.

What is OFAC’s 50% rule?

OFAC’s 50 Percent Rule states that the property and interests in property of entities directly or indirectly owned 50 percent or more in the aggregate by one or more blocked persons are considered blocked.

Is a director an affiliate?

Directors, officers and holders of ten percent or more of an issuing company’s voting securities (including securities which are issuable within the next sixty days) are deemed to be affiliates of the issuing company.

What entities must comply with OFAC?

U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, all U.S. incorporated entities and their foreign branches.

What does OFAC require of banks?

OFAC is not itself a bank regulator; its basic requirement is that financial institutions not violate the laws that it administers. Financial institutions should check with their regulators regarding the suitability of specific programs to their unique situations.

Is a spouse an affiliate?

Your spouse or child is treated as your affiliate when working out whether the entity that owns the asset is an affiliate of, or connected with, the entity that uses the asset in their business.

What is a 144 affiliate?

Rule 144 at (a)(1) defines an “affiliate” of an issuing company as a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such issuer.” The sum of (a) through (e) is the voting securities “you own” for purposes of Rule 144.

How do you determine if a company is an affiliate?

Companies are affiliated when one company is a minority shareholder of another. In most cases, the parent company will own less than a 50% interest in its affiliated company. Two companies may also be affiliated if they are controlled by a separate third party.

What is the difference between a subsidiary and an affiliate?

A subsidiary is a company whose parent company is a majority shareholder that owns more than 50% of all the subsidiary company’s shares. An affiliate is used to describe a company with a parent company that possesses 20 to 50% ownership of the affiliate.

What does OFAC stand for in business?

DEFINITION of ‘Office of Foreign Asset Control (OFAC)’. The Office of Foreign Asset Control (OFAC) is a department of the U.S. Treasury that enforces economic and trade sanctions against countries and groups of individuals involved in terrorism, narcotics and other disreputable activities. Next Up. Direct Investment.

What is the meaning of affiliate in business?

Definition of Affiliate. Affiliate means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. Sample 1. Sample 2.

What is affiliate of any specified person?

Affiliate of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.

What is OFAC sanctions enforcement?

Key Takeaways 1 OFAC enforces U.S. trade and economic sanctions imposed on foreign nations or groups. 2 The sanctions may be approved by Congress or initiated by emergency powers held by the president. 3 Sanctions are intended to disrupt activity detrimental to the U.S. and its allies and force an end to them.