Alston & Bird Summaries on U.S. Sanctions on Iran
In June 2010, the United States Congress overwhelmingly approved legislation containing a package of new unilateral U.S. sanctions on Iran, the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA). In the two years since CISADA’s passage, there has been a multitude of legislative and executive developments that have expanded the Iran sanctions landscape. Summaries of these ongoing developments in the form of client advisories are featured in the collection below.
International Trade & Regulatory Group Advisory: Iranian Sanctions Update: Enforcement Jurisdiction of Office of Foreign Assets Control and Status of Pending Iran Sanctions Legislation
May 22, 2012
This client advisory summarizes two recent developments concerning the ever-changing picture of U.S. sanctions on Iran: a recent penalty case issued by the Office of Foreign Assets Control (OFAC), which appears to break new jurisdictional grounds and the status of significant new sanctions legislation currently pending in Congress. International Trade & Regulatory Group Advisory: President Issues Two New Executive Orders Tightening Sanctions on Iran and Syria
May 3, 2012
This advisory discusses two new Executive Orders that impose significant new extraterritorial sanctions on persons who do business with Iran or Syria. One of the Executive Orders has particularly important implications for foreign financial institutions and other non-U.S. persons. International Trade & Regulatory Group Advisory: Office of Foreign Assets Control Issues Final Rule Implementing National Defense Authorization Act Sanctions on Iran
February 27, 2012
This advisory discusses an OFAC final rule that implements Section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (NDAA), which requires the imposition of sanctions on the Central Bank of Iran and designated Iranian financial institutions (see Alston & Bird LLP International Trade & Regulatory Group Advisory “Congress Finalizes New Sanctions Legislation Aimed at Foreign Banks Over Iran Trade” (Dec. 16, 2011). The rule amends OFAC’s Iranian Financial Sanctions Regulations (31 C.F.R. Part 561) and reissues them in their entirety. It also implements certain provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA). International Trade & Regulatory Group Advisory: Congress Readies Additional Iran Sanctions That Would Close the Foreign Subsidiary Loophole
February 21, 2012
On February 13, 2012, the Senate Banking Committee placed on the Senate legislative calendar the “Iran Sanctions, Accountability, and Human Rights Act of 2012” (S. 2101), which it had approved on February 2, 2012. The 92-page bill, discussed in this advisory, would effectively close the so-called “foreign subsidiary loophole” under which foreign incorporated subsidiaries of U.S. companies have to date not been subject to the Iranian Transactions Regulations (ITR) administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). The bill contains an extensive package of new sanctions on Iran, including at least five new sanctions that could significantly impact non-U.S. companies or financial institutions. It also contains a variety of sanctions aimed at Iranian sectors other than petroleum or petrochemicals. International Trade & Regulatory Group Advisory: United States Freezes Government of Iran Assets; Chart Summarizing Recent U.S. Sanctions on Iran
February 15, 2012
This advisory discusses the Obama Administration’s Executive Order No. 13599 (“E.O. 13599”), which requires United States persons to block all property and property interests of the government of Iran and all Iranian financial institutions (including, specifically, the Central Bank of Iran) that is subject to U.S. jurisdiction. Previously, United States persons were required to reject, but not block, transactions that involved the government of Iran or Iranian financial institutions, except to the extent transactional parties were named on the Specially Designated Nationals List (“SDN List”) and were thus subject to blocking. International Trade & Regulatory Group Advisory: Congress Finalizes New Sanctions Legislation Aimed at Foreign Banks Over Iran Trade
December 16, 2011
On December 15, 2011, the United States Congress approved the National Defense Authorization Act for Fiscal Year 2012 (H.R. 1540), which contains, at Section 1245, new sanctions on Iran that potentially could bar a wide variety of non U.S. financial institutions from access to the U.S. banking system. The legislation is expected to be signed by the President. This advisory discusses those new sanctions. "Imposing A New Round Of Sanctions On Iran," Law360, December 1, 2011.
December 1, 2011 International Trade & Regulatory Group Advisory: Obama Administration Imposes New Round of Sanctions on Iran
November 22, 2011
This advisory provides detail on the November 21, 2011, package release of new sanctions on Iran by the Obama Administration. The new sanctions impact the financial services and other sectors. They expand existing sanctions to target the supply of goods, services, technology or support for the “development” of Iran’s “petroleum resources” and the “maintenance or expansion” of Iran’s “petrochemical industry.” They also designate the Islamic Republic of Iran as a “jurisdiction of primary money laundering concern” under Section 311 of the USA PATRIOT Act. International Trade & Regulatory Group Advisory: FinCEN Issues Final Regulations with Extraterritorial Reach to Implement the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA)
October 10, 2011
This advisory discusses FinCEN final regulations to implement Section 104(e) of CISADA that contain compliance obligations specific to banks in the United States, including U.S. offices of foreign banks. FinCEN opted for imposing a reporting obligation, which is arguably the least onerous of a range of alternative obligations authorized by Section 104(e) of CISADA. The new reporting obligation will impose compliance burdens on banks in the United States. It also will require foreign banks outside the United States to share business or transactional information that is not subject to U.S. jurisdiction with U.S. authorities under an implicit threat of sanctions if they do not cooperate. However, FinCEN demonstrated some flexibility in the detailed requirements of the final rulemaking. The final rule also contains an Appendix A, which is a model certification form for use by foreign banks in connection with the reporting requirements. The certification form also has to be signed by the requesting U.S. bank. International Trade and Regulatory Group Advisory: United States and European Union Expand Sanctions on Iran
June 9, 2011
This advisory discusses how May 2011 saw multiple, coordinated developments in the multilateral drive to prevent nuclear weapons proliferation by Iran. The United States and the European Union (EU) announced new sanctions targeting the Iranian government and international commercial entities engaged in business with the Islamic Republic. Both chambers of the U.S. Congress, meanwhile, continued to develop legislation designed to impose additional restrictions on Iran, while also ratcheting up political pressure on the Obama administration to implement the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA). International Trade and Regulatory Group Advisory: FinCEN Issues Proposed Regulations to Implement CISADA
April 27, 2011
Following up on our June 25, 2010, client advisory (“U.S. Congress Agrees to Iran Sanctions Overhaul with Broad Extraterritorial Reach”) regarding enactment of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury on April 27, 2011 issued proposed regulations to implement Section 104(e) of CISADA. The regulations propose that banks in the United States report to FinCEN on various Iran-related “correspondent accounts” and “transfers of funds” based on certifications obtained from their foreign banking counterparties similar to certifications required under Section 313 of the USA PATRIOT Act. The proposed regulations thus adopt what are ostensibly two of the less onerous compliance options (reporting and certification) presented under Section 104(e) of CISADA, although the compliance burden on affected banks could be significant and the proposed requirements are rife with extraterritorial implications. International Trade & Regulatory Group Advisory: U.S. Congress Agrees to Iran Sanctions Overhaul with Broad Extraterritorial Reach
June 25, 2010
On June 22, 2010, U.S. Senate and House conferees approved a conference report (H Rept. 111-512) that contains a package of new unilateral U.S. sanctions on Iran. The measure is based on bills passed earlier by both the Senate and House. The full Senate and House approved the conference report June 24 by overwhelming votes of 90-0 and 408-8, respectively. The measure now goes to the President, with expected signature and enactment into law within days.
||Thomas E. Crocker |
Thomas Crocker focuses on regulatory and enforcement aspects of international business, and he has been recognized as a leader in his practice area by publications such as Chambers USA, Best Lawyers in America, Super Lawyers and Who’s Who in America. He specializes in sanctions, export controls, foreign direct investment reviews by the Committee on Foreign Investment in the United States (CFIUS), anti-money-laundering, Foreign Corrupt Practices Act (FCPA) and technology cooperation issues. Mr. Crocker has particular expertise in the Office of Foreign Assets Control (OFAC) regulations, Export Administration Regulations (EARs) and the International Traffic in Arms Regulations (ITAR).