2026-09085RuleWallet

Treasury Issues License to Close Out Sanctioned Kovay Gardens Business

Published Date: 5/7/2026

Rule

Summary

The Treasury’s Office of Foreign Assets Control (OFAC) is officially sharing a special permission called General License 34. It lets people wrap up business with Kovay Gardens, which was previously blocked due to terrorism and drug trade rules, but only until March 21, 2026. If you’re involved with Kovay Gardens, you need to act fast and follow the rules to avoid any money trouble!

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Temporary Wind-Down Permission for Kovay Gardens

If you do business with Kovay Gardens, you are allowed to finish (wind down) transactions that would otherwise be blocked under the Global Terrorism Sanctions Regulations and Illicit Drug Trade Sanctions Regulations until 12:01 a.m. eastern daylight time on March 21, 2026. This authorization was issued on February 19, 2026 as General License No. 34.

Payments Must Go Into Blocked Accounts

If a payment to a blocked person is made as part of the wind-down, that payment must be placed into a blocked account in accordance with the Illicit Drug Trade Sanctions Regulations and the Global Terrorism Sanctions Regulations. You must follow those blocked-account rules when completing any authorized wind-down payment.

No Authorization for Other Blocked Persons

The general license does not authorize transactions with any blocked persons other than those described in paragraph (a) (Kovay Gardens and entities it owns 50% or more). Transactions involving other persons blocked under the GTSR or IDTSR remain prohibited unless separately authorized.

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Key Dates

Rule Effective
Published Date
2/19/2026
5/7/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Foreign Assets Control Office
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