72-Hour Update: OFAC Alert Confirms Albanese Sanctions Not Being Enforced Due to Ongoing Litigation; Hungary Law Fully Effective; Board of Peace Fund Still Empty
Published: June 2, 2026
By: Zeeshan Khan
Reading time: 11 minutes
Category: UN / Human Rights / Legal
Note: June 2, 2026 – This is an update to the May 29, 2026 article: Hungary ICC Reversal Becomes Law as President Signs Bill – Sanctions Against UN Expert Remain Fully Restored
WASHINGTON / BUDAPEST / THE HAGUE – June 2, 2026 – Four days after Hungary’s ICC reversal law entered into force, a significant legal development has altered the status of sanctions against UN expert Francesca Albanese. According to an official alert posted on the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) website, the sanctions against Albanese are not currently being implemented or enforced due to an ongoing court case. Meanwhile, Hungary’s ICC reversal remains fully in effect, and the Board of Peace reconstruction fund remains empty.
This 72-hour update covers the suspension of Albanese sanctions enforcement, the unchanged status of Hungary’s ICC membership, the continued emptiness of the Board of Peace’s reconstruction fund, and the pending status of the D.C. Circuit’s full appeal.
The Essentials: Who, What, When, Where, Why, How (Last 72 Hours)
Who: U.S. Treasury Department’s Office of Foreign Assets Control (OFAC); U.S. District Court for the District of Columbia; Francesca Albanese (UN Special Rapporteur); President Tamás Sulyok; Prime Minister Péter Magyar; the International Criminal Court (ICC); the Board of Peace; and the D.C. Circuit Court of Appeals.
What: An OFAC alert posted on the Treasury Department website states that the designation of Francesca Albanese “is not being implemented or enforced” due to a District Court injunction issued May 13, 2026. Hungary’s ICC reversal law remains in full effect following presidential signature on May 28, 2026. The Board of Peace reconstruction fund remains empty with zero dollars spent on rebuilding Gaza.
When: The OFAC alert is current as of June 2, 2026. The District Court injunction was issued May 13, 2026. Treasury re-designated Albanese on May 27, 2026. Hungary’s ICC reversal law entered into force on May 29, 2026.
Where: OFAC alert posted on Treasury Department website (Washington, D.C.); District Court injunction from U.S. District Court for the District of Columbia; Hungarian presidential palace and parliament (Budapest, Hungary); Board of Peace operations (Gaza/New York); D.C. Circuit Court of Appeals (Washington, D.C.).
Why (Immediate Cause): The OFAC alert explicitly cites ongoing litigation in L.C. et al. v. Trump et al., No. 1:26-cv-688 (D.D.C.), in which the District Court issued an order enjoining enforcement of Albanese’s designation. The Treasury re-designation on May 27 occurred despite this injunction.
How (Mechanism): The District Court’s May 13 injunction prohibits the Departments of State, Treasury, and Justice, as well as their officers and employees, from implementing or enforcing Albanese’s designation. The OFAC alert formally notifies the public that the designation is not being enforced while the injunction remains in effect.
Specific Updates in the Last 72 Hours (May 30 – June 2, 2026)
1. OFAC Alert Confirms Sanctions Not Being Enforced
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has posted an official alert on its website regarding the International Criminal Court-related sanctions program. The alert states:
“Alert: Ongoing Litigation – L.C. et al. v. Trump et al., No. 1:26-cv-688 (D.D.C.). On May 13, 2026, in L.C. et al. v. Trump et al., No. 1:26-cv-688 (D.D.C.), the U.S. District Court for the District of Columbia issued an order enjoining the U.S. Department of State, U.S. Department of the Treasury, and U.S. Department of Justice, as well as their ‘officers, agents, servants, employees, attorneys, and all other persons in active concert’ with them, from, among other things, implementing or enforcing the designation of Francesca Albanese as a designated foreign national under Section 1(a)(ii)(A) of Executive Order 14203. The designation of Francesca Albanese is not being implemented or enforced while this order remains in effect.”
Current Status: The OFAC alert is active as of June 2, 2026. The District Court injunction remains in effect. The sanctions against Albanese are not being enforced.
What This Means: Despite Treasury’s May 27, 2026 re-designation of Albanese to the SDN list, the government is legally prohibited from enforcing those sanctions while the injunction stands. Albanese’s name may remain on the list, but the associated restrictions cannot be applied.
2. Treasury Re-Designation Confirmed – But Enforcement Suspended
The Treasury Department’s May 27, 2026 re-designation of Francesca Albanese to the Specially Designated Nationals (SDN) list is confirmed. However, the OFAC alert clarifies that this designation is not being implemented or enforced.
Current Status:
| Element | Status as of June 2, 2026 |
|---|---|
| Albanese on SDN list | YES – Added May 27, 2026 |
| Sanctions being enforced | NO – District Court injunction prohibits enforcement |
| OFAC alert posted | YES – Confirms non-enforcement |
What This Means: The May 29 article correctly reported that Treasury re-designated Albanese and that the sanctions were “fully restored.” However, the subsequent OFAC alert clarifies that the restoration is symbolic only, as enforcement is prohibited by court order.
3. Full Appeal Remains Pending Before D.C. Circuit (Unchanged)
The D.C. Circuit’s May 22 ruling was a stay – a temporary measure – not a final decision on the merits of the case. The full appeal of Judge Leon’s injunction is still pending before the D.C. Circuit. The core constitutional question – whether a foreign national outside U.S. territory has First Amendment rights – remains unresolved. No ruling has been issued on the full appeal as of June 2, 2026.
4. Hungary ICC Reversal Remains Fully in Effect (Unchanged)
The Hungary ICC reversal law remains fully in effect. President Tamás Sulyok and Speaker of Parliament Ágnes Forsthoffer signed the bill on May 28, 2026. It was published in the May 28 issue of the Hungarian Gazette and entered into force on May 29, 2026.
What the Law Does (Unchanged):
- Repeals the 2025 law on Hungary’s withdrawal from the ICC
- Re-establishes Hungary’s full participation in the Rome Statute
- Declares Hungary’s “commitment to the principles of justice, human dignity and international cooperation”
Current Status: Hungary remains the only EU member state that is a party to the Rome Statute. The withdrawal that was set to take effect on June 2, 2026, has been legally nullified.
5. Board of Peace Fund Remains Empty – No New Developments (Unchanged)
As of June 2, 2026, the Board of Peace’s reconstruction fund remains empty. Key facts from the May 28-29 articles remain unchanged:
| Metric | Status |
|---|---|
| Member states pledged | $7 billion – NOT deposited |
| Trump administration pledged | $10 billion – NOT deposited |
| US dollars spent on reconstruction | ZERO |
| Morocco donation ($3M) | Went to JPMorgan account for operating expenses |
| UAE donation ($20M) | Went to JPMorgan account for operating expenses |
| Planned Gaza visit | Still awaiting IDF approval |
6. ICC Warrants: No New Warrants Issued (Unchanged)
No new ICC arrest warrants have been issued as of June 2, 2026. The ICC continues to deny that new warrants have been issued against Israeli officials beyond those for Netanyahu and Gallant. The Pre-Trial Chamber has not yet ruled on Prosecutor Khan’s May 2024 applications.
Comparison: Before (May 29 Article) and After (June 2 – Current)
| Issue | As of May 29, 2026 (Article) | As of June 2, 2026 (Current) |
|---|---|---|
| Hungary ICC reversal law | ENTERED INTO FORCE – May 29, 2026 | IN FULL EFFECT – Unchanged |
| Sanctions against Albanese | “Fully restored” – Treasury re-added May 27 | NOT BEING ENFORCED – OFAC alert confirms injunction prohibits enforcement |
| OFAC alert on non-enforcement | Not mentioned | POSTED – Confirms designation not implemented or enforced |
| District Court injunction | Not mentioned | IN EFFECT – Issued May 13, 2026 |
| Full appeal before D.C. Circuit | PENDING – No ruling yet | PENDING – Unchanged |
| Board of Peace fund status | Empty – zero dollars deposited | EMPTY – Unchanged |
| Board of Peace Gaza visit | Pending IDF approval | PENDING – Unchanged |
| ICC warrants | No warrants issued | NO WARRANTS ISSUED – Unchanged |
Legal Timeline: Albanese Sanctions
| Date | Event |
|---|---|
| July 9, 2025 | State Department announces sanctions against Albanese |
| (Date unspecified) | Albanese and others file lawsuit: L.C. et al. v. Trump et al. |
| May 13, 2026 | U.S. District Court for D.C. issues injunction prohibiting enforcement of Albanese designation |
| May 22, 2026 | D.C. Circuit issues emergency stay, temporarily allowing enforcement |
| May 27, 2026 | Treasury re-designates Albanese to SDN list |
| May 28-29, 2026 | International media reports sanctions “fully restored” |
| June 2, 2026 | OFAC alert confirms designation not being enforced due to May 13 injunction |
Why This Matters (Updated for June 2)
These developments reveal a significant gap between Treasury’s re-designation action and the actual enforceability of sanctions.
For the Sanctions Case: The OFAC alert confirms what the May 29 article did not capture: the May 27 re-designation is not being enforced. The District Court’s May 13 injunction remains in effect. The government is legally prohibited from implementing or enforcing the sanctions while the injunction stands. The full appeal before the D.C. Circuit will determine the ultimate legality of the sanctions and the constitutional question of First Amendment rights for foreign nationals outside U.S. territory.
For Hungary and the ICC: The formal entry into force of the legislation on May 29 means Hungary has legally and irrevocably reversed its withdrawal. The country remains the only EU member state that is a party to the Rome Statute. This is unchanged from the May 29 article.
For Gaza Reconstruction: The Board of Peace’s situation remains unchanged. The reconstruction fund is empty with zero dollars spent on rebuilding. The planned first visit to Gaza is still awaiting IDF approval. Pledged billions from member states and the Trump administration have not been deposited.
For Accuracy of Reporting: The May 29 article correctly reported that Treasury re-designated Albanese on May 27 and that multiple news outlets confirmed the restoration of sanctions. However, those reports did not account for the existing District Court injunction that prohibits enforcement. The OFAC alert now provides the complete picture.
Current Status Summary (As of June 2, 2026, 14:00 EST)
| Question | Answer |
|---|---|
| Has the Hungary ICC reversal law entered into force? | YES – Effective May 29, 2026 |
| Has Hungary formally reversed its ICC withdrawal? | YES – Reversal is complete and legally binding |
| Has Treasury re-added Albanese to the SDN list? | YES – May 27, 2026 |
| Are the sanctions against Albanese being enforced? | NO – OFAC alert confirms not implemented or enforced |
| What court issued the injunction? | U.S. District Court for the District of Columbia – May 13, 2026 |
| Is the OFAC alert currently posted? | YES – As of June 2, 2026 |
| Is the full appeal before D.C. Circuit resolved? | NO – Still pending; no ruling yet |
| Has the Board of Peace fund received money? | NO – Still empty; zero dollars spent on reconstruction |
| Has the Board of Peace visited Gaza yet? | NO – Still awaiting IDF approval |
| Have new ICC warrants been issued? | NO – Unchanged |
What Happens Next (Updated for June 2)
Immediate term (hours to days):
- The OFAC alert remains active while the District Court injunction stands
- The Board of Peace’s planned Gaza visit may proceed pending IDF approval – no announcement yet
Short term (weeks to months):
- The D.C. Circuit will hear the full appeal and issue a final ruling on the legality of sanctions against Albanese
- That ruling will determine whether the injunction is upheld or overturned
- Congressional oversight of Board of Peace funding may intensify following the empty fund revelation
Long term (months to a year):
- Either party could appeal the D.C. Circuit’s final ruling to the Supreme Court
- The Board of Peace’s credibility may be further affected by the empty fund and planned visit
- Hungary’s formal ICC membership may influence other countries considering withdrawal
Sources
- OFAC Sanctions Program: International Criminal Court-Related Sanctions – Official alert on ongoing litigation and injunction (accessed June 2, 2026)
- OFAC Recent Actions (May 27, 2026) – SDN List update adding Francesca Albanese
- U.S. Department of State (July 9, 2025) – Original sanctions announcement against Albanese
- The Budapest Times (May 28, 2026) – “Hungary reverses ICC exit decision” – President and Speaker signed bill; published in Gazette May 28; effective May 29
- The Guardian (May 27, 2026) – “Hungarian MPs vote to remain member of ICC” – Parliamentary vote details (133 in favor, 37 against, 5 abstentions)
- Il Globo (May 28, 2026) – “USA, nuove sanzioni contro la relatrice Onu Francesca Albanese” – Treasury re-designation confirmed
- The Jerusalem Post (May 27, 2026) – “US re-adds Francesca Albanese to sanctions list” – OFAC action confirmed
- Hungarian Gazette (Magyar Közlöny) – May 28, 2026 issue – Official publication of ICC withdrawal reversal law
- Previous article: Hungary ICC Reversal Becomes Law as President Signs Bill – Sanctions Against UN Expert Remain Fully Restored (The 5 Ws, May 29, 2026) – Baseline information on Hungary law and Treasury re-designation
The 5 W's 
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