International project activities, working with non-U.S. citizens, and/or fundraising internationally requirements and policies

It’s exciting to work and collaborate with artists and patrons from across the globe! Since you plan to work internationally or work/fundraise with non-U.S. citizens, there are a few extra steps you’ll need to take related to the United States Office of Foreign Assets Control or OFAC. In addition to Fractured Atlas and our fiscally sponsored projects, all U.S. persons must comply with OFAC’s 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. 

1. First, please be aware that all persons or organizations that are accepted into the Fractured Atlas Fiscal Sponsorship Program must agree to comply with the fiscal sponsorship agreement that includes clauses certifying their understanding of and agreement to comply with Fractured Atlas’s fund release policies AND any relevant Office of Foreign Assets Control sanctions. 
   1. What is the Office of Foreign Assets Control?
      1. The Office of Foreign Assets Control, or “OFAC,” is a financial intelligence and enforcement agency of the U.S. Treasury Department that administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives.
         
         
2. Second, familiarize yourself with OFAC’s sanctions. In response to the actions of foreign governments, groups, or individuals, the U.S. government implements sanctions and embargoes that restrict what funds, services, or goods U.S. persons can provide to certain foreign parties. OFAC administers these sanctions programs. Some sanctions programs are against an entire country or geographic region, while others are targeted to specific entities or individuals. OFAC maintains a regularly updated list of places and people that are sanctioned by the U.S. government.
   1. So, what exactly do you need to know about OFAC Sanctions?
      1. All U.S. persons must comply with OFAC regulations - this includes both you and Fractured Atlas. 
      2. In general, U.S. persons are prohibited from trade or financial transactions with sanctioned individuals, countries, or regions. However, if a country or region is subject to sanctions, OFAC may provide certain exceptions for particular activities by issuing General or Specific Licenses. 
         1. General Licenses: General Licenses provide blanket permission to U.S. persons to engage in certain activities. A General License may also provide certain conditions, such as meeting reporting requirements, that organizations must satisfy if they engage in the activities described.
         2. Specific Licenses: Even if a General License does not authorize an activity that a U.S. person wants to conduct or support in a sanctioned country or region, the U.S. person may still be able to apply through OFAC for a “Specific License” that will permit it to engage in its planned work. A Specific License is issued on a case-by-case basis under limited situations and conditions. 
   2. It is your responsibility to determine whether the country(ies) that you are working in are under U.S. Sanctions or embargoes, and notify Fractured Atlas of this. 
      1. If you are working in a country under U.S. Sanctions or embargoes, Fractured Atlas may request fund release documentation for all funds released for use in said country, and the project must comply per the fiscal sponsorship agreement. Refusal to provide sufficient documentation may be grounds for termination of fiscal sponsorship.
   3. If you are working in a country that is under a U.S. Sanction or embargo, it is your responsibility to determine whether you need to obtain a general or specific license to legally do work there and to obtain the correct license. 
      1. If you realize that you have obtained an incorrect license or you did not obtain a license, when you needed to, please notify Fractured Atlas ASAP. 
   4. Fractured Atlas may conduct periodic OFAC License audits, and if Fractured Atlas requests, please supply Fractured Atlas with proof of the appropriate license within a reasonable time after the request is made.
   5. If Fractured Atlas discovers that you are spending or receiving funds in a sanctioned location without the appropriate license, Fractured Atlas has the right to request all released funds be returned and has the right to terminate your fiscal sponsorship for noncompliance with our policies. Additionally, both Fractured Atlas and the legal entity on file for your fiscally sponsored project may be subject to legal action, so double check the Sanctions List before sending or receiving any international funds!
      
      
3. Third, familiarize yourself with OFAC’s Specially Designated Nationals and Blocked Persons List.
   1. What is the Specially Designated Nationals and Blocked Persons List?
      1. There are certain sanctions that apply to groups or individuals, regardless of the location of those groups or individuals. OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries, as well as individuals, groups, and entities designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs” and the list OFAC maintains is called the “SDN List.”  
      2. The assets of SDNs are blocked and U.S. persons - this includes both you and Fractured Atlas - are generally prohibited from dealing with them. 
   2. It is your responsibility to determine whether the international person(s) that you are working with are SDNs. 
   3. If you realize that you have incorrectly given or received money from someone on the SDN List, please notify Fractured Atlas ASAP. 
   4. Fractured Atlas may conduct periodic SDN List audits, and if Fractured Atlas requests, it is your responsibility to supply Fractured Atlas with documentation demonstrating that payees and/or donors are not on the SDN List.
   5. If Fractured Atlas discovers that you are paying or receiving funds from an entity on the SDN List, Fractured Atlas has the right to request all released funds be returned and has the right to terminate your fiscal sponsorship for noncompliance with our policies. Additionally, both Fractured Atlas and the legal entity on file for your fiscally sponsored project may be subject to legal action, so double check the SDN List before sending or receiving any international funds!