In last weeks I’ve been getting calls from many Iranian Americans who are inquiring in OFAC licensing for special transfer finances as cash gifts or as inheritances from Iran to. As usual I give them the standard outline: “non commercial” individual remittances from Iran to the United States are authorized to be processed with the help of a depository institution so long as the resources are transferred from a 3rd province overseas fiscal institution and the transfer is not related to any type of ‘familyowned’ biz. This is the rule, and is the rule for sometime, as codified in 31 560. Remember, this rule is commonly referred to as a main license, which means it is an open authorization that OFAC has provided and does not require any specific application and approval with intention to be utilized.
Considering the above said. a few weeks ago and this kind of guys and gals who are calling me are telling me that there are a lot of lawyers and CPAs out there marketing to the Iranian American collaboration stating that a OFAC specific license is needed for every transaction type in relation to Iran, and also these types of private types remittances. In the event this wasn’t awful enough quite a few of these nations are indicating that this is due to the latter rearrangements in the act due to OFAC’s amending the Iranian pecuniary Sanctions Regulations. This is so bad, that I have a rough time even realizing where to begin.
Nevertheless, we have to start with the matter of fact that the last IFSR reviewing related to Section mandates public 1245 Defense Authorization Act for Fiscal Year 2012 do not impact individual remittances to or from Iran. In shorter, these sanctions deal with denying overseas pecuniary institutions who engage in considerable pecuniary transactions with Iran Central Bank and/or the designated Iranian banks access to correspondent or payable thru accounts at depository institutions. Ok, and now one of the most important parts. It has nothing to do with depository opportunity institutions to sort out private remittances from Iran.
While following Executive issuance Order 13599, to expect special remittances to proceed unimpaired, subsection C of Section NDAA 1245, implemented by Executive Order 13599, did block all Iranian pecuniary institutions, OFAC and however issued 2 key Licenses. The old enough rule which was in place is still in place, as such. So here is a question. Don’t appreciate me?
Now pay attention please. The ITR as well authorize United States depository institutions to sort out transfers of credits that arise from a housekeeping remittance not related to a “familyowned” enterprise. Now look. ITR, § 560. Considering the above said. Please be advised that transfers authorized with the help of the ITR must be wired from in Iran to a non-, ‘nonIranian’ bank outside the United States, while the main destination can be an account held at a United States depository institution. See ITR, § 560.
Usually, on February 2012, five and the chairman signed Executive Order 13599, “Blocking Property of Iran administration and Iranian pecuniary Institutions,” which blocks all property and interests in property of Iran country management, as well as the Central Bank of Iran. That said, oFAC issued 2 main licenses, which authorize special transactions that will otherwise be prohibited under the patronage of Executive Order Subject to particular exceptions, common License an authorizes under Executive Order 13599 all transactions involving property and interests in property of Iran country management or Iranian fiscal institutions that are authorized under standard licenses set forth in the ITR, including§ 560.
Additionally, standard License B authorizes depository institutions and registered brokers or dealers in securities to analyse transfers of finances to or from Iran or for or on behalf of an individual ordinarily resident in Iran who is not included within the term “country management of Iran” to the extent the transfer is a noncommercial, the transfer and private remittance is not by, through, to and an individual whose property and interests in property are blocked pursuant to Mass Weapons Destruction Proliferators Sanctions Regulations, 31 F. Global Terrorism Sanctions Regulations, 31 R portion 594, or a guy whose property and interests in property are blocked pursuant to any another an important element of 31 chapter V, or any Executive order, except a Iranian fiscal institution whose property and interests in property are blocked solely pursuant to Executive Order 13599.
In shorter, you don’t need a OFAC specific license to send or get private remittances or housewifery related remittances to and from Iran since it is always authorized under the patronage of OFAC administered regulations. While receiving as well as said the resources may request a signed affidavit confirming that the credits are indeed individual or housekeeping related in nature, That the bank sending. However, seeking to confirm that this standard license applies to their case may file a request for interpretative guidance with OFAC to ensure that the standard license applies to their specific facts. Of course oFAC will send back an advisory opinion stating whether or not the key license applies. Consequently, merely a confirmation by fundamental OFAC applicability license to a specific set of facts, this is not a license authorization.
Finally, a word of caution. It seems that anybody in Iran has turned out to be really generous as of late and is sending millions of dollars in gifts to housekeeping members in the I will caution that any structuring or characterization of a transaction to avoid or circumvent sanctions is deemed to be evasion and can carry stiff penalties. Inheriting immovables in Iran, doesn’t necessarily mean that you can sell the property with anything unlike a OFAC license simply cause it was inheritance and individual in nature. A well-known reason that is. The above main license usually applies to individual and housekeeping cash transfers and does not authorize any transactions which may otherwise be prohibited with no a OFAC license.
This author blog is Erich Ferrari, an attorney specializing in OFAC matters. In the event you have any questions please contact him at.