OFAC FAQs: Question Index

Full List of OFAC Frequently Asked Questions

(Organized by Topic)

   1 What is OFAC and what does it do?2 How long has OFAC been around?3 What does one mean by the term "prohibited transactions"?4 Are there exceptions to the prohibitions?5 How do I determine if I have a valid OFAC match?6 Where can I find the specific details about the embargoes?7 Can I get permission from OFAC to transact or trade with an embargoed country?8 What must I do to get permission to trade with an embargoed country?9 What do you mean by "blocking?"10 What countries do I need to worry about in terms of U.S. sanctions?11 Who must comply with OFAC regulations?12 How much are the fines for violating these regulations?13 Is there a mechanism for a company to report its past undetected violations of OFAC regulations for completed transactions? Is any type of "amnesty" available for inadvertent failure to comply prior to the company becoming aware of the OFAC regulations?14 Can I regard previously issued and published opinion letters, regulatory interpretations, or other statements as guidance for my transactions?

15

Can OFAC change its previously stated, non-published interpretation or opinion without first giving public notice?126 I tried to ship a package and it was returned to me "due to OFAC sanctions."  Why?127 I tried to ship a package and it was "blocked" by the shipping company "due to OFAC sanctions."  Why?  And how can I get the package unblocked? 
Questions about Specially Designated Nationals (SDNs)
   18 What is an SDN?19 How do I get a copy of this list?20 How often is the SDN list updated?21 How do I know what specific changes have been made to OFAC's SDN list?22 Does OFAC maintain or can it create a country-by-country list of SDNs?23 What do I do if I have a match to the SDN list?24 What is the Control list? Who do I call about the Control list? What is the difference between the Control list and OFAC's SDN list?122 What are weak aliases (AKAs)?123 Where can I find weak aliases (AKAs)?124 Am I required to screen for weak aliases (AKAs)?125 Will I be penalized for processing an unauthorized transaction involving a weak alias (AKA)?   
Questions from Financial Institutions
   25 Does OFAC itself require that banks set up a certain type of compliance program?26 How do I get the OFAC Starter Kit?27 What do I need to do to comply? Do I have to buy expensive software?28 How often do I need to scan my customer database for SDNs?29 How do I setup a compliance program for my bank?30 How do I know if my compliance program is adequate?31 What are the features and benefits that banks should be looking for when selecting an OFAC compliance software package?32 How do I block an account or a funds transfer?33 How much interest do I have to pay on the blocked funds?34 Can my bank deduct service charges from the account?35 Do all OFAC programs involve blocking transactions?36 I understand blocking a transaction, but what is meant by rejecting a transaction? When should a transaction be rejected rather than blocked?37 My bank operates accounts for individuals living in Iran. OFAC has told us that these accounts cannot be operated. Does this mean that the accounts are blocked?38 Are U-Turn payments for Iran still permitted?118 I have a client that is in Iran to visit a relative. Do I need to restrict the account?39 What do I do if I have a blocked account that needs to be escheated to the state?40 If my financial institution receives a wire going to an embassy in a sanctioned country, can we process the transaction?41 Should an institution tell its customer that it blocked their funds, and, if so, how does the institution explain it to them?42 What do I do if a person tries to open an account and the person's name is on OFAC's SDN list? Do I open the account and then block the funds?43 Does a financial institution need to scan names against OFAC's list of targets upon account opening or can it wait for 24 hours to receive a report from its software vendor on whether or not there is a hit?44 Is there a dollar limit on which transactions are subject to OFAC regulations?45 Does my bank need to check the OFAC list when selling cashier's checks and money orders? In the case of cashier's checks, do I need to check both the purchaser and the payee? As a mortgage lender, do I need to check both the purchaser and the seller's name against the SDN list?46 If a loan meets underwriting standards but is a true "hit" on the OFAC list, what do we use as a denial reason on the adverse action notice?47 Through corporate giving programs, many banks contribute toward charities and other non-profits. To what extent does a bank need to review the recipients of these gifts or the principals of the charities?48 I just received an interdiction "alert." What do I do?49 When a transaction is rejected or blocked, I have ten days to report it. Do I have to do it in writing or can I call OFAC Compliance and report it that way?50 Is there a requirement for annual reporting of blocked property? Is there a required format?51 How do I apply for a license to get my money unblocked?52 Can U.S. financial institutions open correspondent accounts for Iraqi financial institutions, or process funds transfers to and from Iraqi financial institutions?53 How do I differentiate between an "inquiry" and a "payment instruction" when a customer wants to send a wire transfer to a sanctioned party or country?54 I have an account with a W-8 showing an address in Iran. Is the account automatically restricted?95 Does a financial institution have the obligation to screen account beneficiaries for compliance with OFAC regulations?116 On February 14, 2008, OFAC issued guidance stating that the property and interests in property of an entity are blocked if the entity is owned, directly or indirectly, 50% or more by a person whose property and interests in property are blocked pursuant to an Executive Order or regulations administered by OFAC. We act as an intermediary bank in wire transfers between other banks. Does OFAC expect banks that are acting as financial intermediaries to research non-account parties that do not appear on the SDN List, but are involved with or referenced in transactions that are processed on behalf of correspondents?335 Firms operating in the securities industry as custodians and securities intermediaries often face the question of how to accurately identify the beneficial owner of assets within an account or transaction. What can these firms do to protect themselves from the risk of directly or indirectly providing services to—or dealing in property in which there is an ownership or other interest of—parties subject to sanctions?
Questions from Exporters & Importers
   55 Does OFAC have an exporter assistance phone line?56 What is the difference between the SDN List and the Commerce Department's List of Denied Parties? Why can't they be integrated into one list?   
Questions related to NGO Registration Numbers
   57 How do I get an NGO registration number?58 What are the chances that my application will be approved?59 Do I need a registration number or license to donate goods?   
Questions from the Insurance Industry
   61 State insurance statutes regulate an insurer's ability to withhold claim payments, cancel policies or to decline to enter into policies. In some cases, insurers must commit an ostensible violation of state insurance regulations to comply with OFAC regulations. Does OFAC have a position as to whether OFAC regulations preempt state insurance regulations in this context?62 At what point must an insurer check to determine whether an applicant for a policy is an SDN?63 What should an insurer do if it discovers that a policyholder is or becomes an SDN--cancel the policy, void the policy ab initio, non-renew the policy, refuse to pay claims under the policy? Should the claim be paid under a policy issued to an SDN if the payment is to an innocent third-party (for example, the injured party in an automobile accident)?64 A workers' compensation policy is with the employer, not the employee. Is it permissible for an insurer to maintain a worker's compensation policy that would cover a person on the SDN List, since the insurer is not transacting business with the SDN, but only with his/her employer?65 How frequently is an insurer expected to scrub its databases for OFAC compliance?66 Is it sufficient if my company screens life insurance policies only prior to policy issuance?67 If my policyholder, who is a U.S. person, requests a change of beneficiaries and designates a cousin living in Cuba as a beneficiary under the life insurance policy, what shall I do?68 If my screening efforts uncover a policyholder who became an SDN after policy issuance, can I notify the policyholder that the policy is “blocked”?69 In my letter to the policyholder whose policy is “blocked,” may I also instruct the policyholder not to send any more premium or that we will not accept additional premium under this account?102 How can an insurer participate in worldwide insurance markets through global insurance policies if, by definition, coverage extends to potential countries? 103 What if the commercial setting and/or market circumstances of a global insurance policy does not permit the use of an OFAC exclusion such as the one noted above?104 Can an insurer offer global travel insurance and worldwide travel assistance without violating U.S. sanctions?      70 What Is This OFAC Information On My Credit Report?71 How Can I Get The OFAC Alert Off My Credit Report?       72 Can I send money to a sanctioned country using a third-country company's website? Can I buy gifts for someone in a sanctioned country over the internet? The websites tell me that it's o.k. because they themselves are not sanctioned parties.73 My company provides money remittance and account services via the Internet. Does OFAC have any compliance guidance for this type of business?      74 What is a license?75 Do I have to fill out a particular form to get a license to engage in a transaction?76 Can I appeal a denial of my license application?77 How can I find out the status of my pending license application?78 What agencies other than Treasury review OFAC license applications and what are the roles of these other agencies?94 Is a license required to enter into an over flight permit agreement with the Cuban Civil Air Authority, even if there is no cost?97 What format options are permitted for submitting license applications pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA)? 98 How should I present my TSRA license application?99

What is the procedure for submitting multiple copies of the same TSRA license application?

100 If I am submitting multiple TSRA license applications at the same time, should I send them under a single cover letter?101 Should I send a sample of the proposed export product as an attachment to my TSRA license application? 117 I hold a specific license to sell agricultural goods, medicine, or medical devices to Iran. The terms of the license allow me to accept a letter of credit issued by a bank in Iran which has not been named a Specially Designated National under any of the programs administered by OFAC. The license, however, also states that a U.S. financial institution may not advise, confirm or otherwise deal in that credit. How am I supposed to know if/when a letter of credit has been issued for my sale and how do I get paid? My bank accounts are all at U.S. financial institutions.119 The US exporter has a valid, one-year specific license issued pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC), to enter into contracts during the one-year period of the license for the export/reexport of medical devices and to ship these medical devices within the 12-month period beginning on the date of signing of the contract (the "validity period").  Out of the box, the medical device has a defective component, or a component breaks within the validity period of the license.  Can the US exporter send a replacement part pursuant to its valid OFAC license as a transaction that is ordinarily incident and necessary to the sale of the medical device as a whole? 120 The US exporter exports a medical device pursuant to a valid OFAC TSRA license.  After a few years, some components break.  The US exporter wants to send replacement parts. What is the US exporter required to do?121 The US exporter has a valid OFAC TSRA license to export/reexport a medical device.  The US exporter has exported a medical device pursuant to this license. The medical device breaks during the validity period of the license.  Can the US exporter import the item back into the US pursuant to the original license?   
Technology Questions ^ TOP
   79 Does OFAC provide its SDN List in a format that can be easily imported into a database?80 Does OFAC provide its SDN List in a spreadsheet format?105 OFAC says it has updated its SDN list, but when I download the appropriate SDN files from the OFAC website, they appear to be out-of-date. Where can I get the latest SDN information?81 What is the delimiter in OFAC's delimited files?83 How are OFAC's delimited files structured?84 Does OFAC maintain its files in locations other than on its website?85 Is there a version of the delimited archive that works with UNIX?86 Does OFAC have an email service that will notify me when there are updates to the SDN list?87 Your FTP site has gone offline. Who should I contact to remedy this problem?88 I am a systems administrator looking to design an automated process that will download the SDN list without human intervention. How can I do this given that changes to the SDN list can be sporadic?89 I am a database administrator at a bank and responsible for keeping my company's SDN data current. Is the SDN list comprehensive or do I need to download some kind of supplement to the list every time there is an update?90 Do you offer a SDN changes file or "delta file" in a data format?91 I am looking for the terrorist list on your web site so I can bring my company in compliance with U.S. law. Where can I find this list?92 I'm a subscriber to OFAC's e-mail notification services. For some reason I have stopped receiving the broadcast messages when OFAC updates its website. Why is this?93 I recently attempted to subscribe to one of OFAC's e-mail list services and I have not yet received my confirmation e-mail. Why is this?   
Sanctions List Search Questions ^ TOP
   82 Does OFAC have a web-based SDN or FSE search engine?246 How does Sanctions List Search work?247 What does the Sanctions List Search Score mean?248 How do I use the Minimum Name Score field and score slider bar?249 How is the Score calculated?250 Does OFAC recommend a specific match threshold score?251 What fields influence the score?252 What fields use fuzzy logic?253 When conducting a search using the ID field, does Sanctions List Search account for variations in non-alphanumeric characters?287 Who may use Sanctions List Search? Can we configure our automated system to utilize Sanctions List Search on a continual basis?369 Does Sanctions List Search look for potential matches on all of the various sanctions lists that OFAC has published on its website?   Questions Regarding Private Relief Efforts in Somalia​ ​129 Can I make a private donation to a charity that is delivering humanitarian assistance in Somalia?130 Can my organization provide humanitarian assistance in Somalia?131 What if, in delivering humanitarian assistance, my organization unintentionally provides food or medicine to members of al-Shabaab?132 What if, in delivering humanitarian assistance, my organization unintentionally provides cash to members of al-Shabaab?133 I have heard that certain U.S. humanitarian assistance organizations are exempted from the prohibition on making certain cash payments to al-Shabaab. Is that correct?134 I have family members or friends in Somalia and would like to send remittances to them. Can I do that without violating OFAC sanctions?   Questions Regarding Syria​ ​135 Are travel-related transactions permissible under the new Syria Executive order 13582?      Questions Related to OFAC Syria General License No. 4: Exports or reexports to Syria of items subject to the Export Administration Regulations:   136 What does the term "items" cover, and what is meant by items subject to the Export Administration Regulations?137 Regarding OFAC Syria General License No. 4A, will I need a specific license from OFAC to export or reexport food or medicine to the Government of Syria? 138 Does General License No. 4A authorize U.S. persons to export or reexport from a third country to Syria or the Government of Syria a foreign-made item with either no U.S. content or de minimis U.S. content?     OFAC Syria General License No. 6: Personal Remittances   140 May I continue to send money to family or friends in Syria? 141 May I send personal remittances through the Commercial Bank of Syria, the Syrian-Lebanese Commercial Bank, or the Syria International Islamic Bank (SIIB) to family or friends in Syria?    

General License No. 11: Authorizing Services in Support of Nongovernmental Organizations’ Activities in Syria

205 Who is authorized to send money to support certain nongovernmental organizations’ activities?206 As an individual, may I transfer funds directly to Syria in support of authorized NGO activities under General License No. 11?  Questions Regarding the Central Bank of South Sudan   142 Is the new Bank of South Sudan still considered to be part of or linked to the Central Bank of Sudan or the Government of Sudan?   Questions Regarding Activities in the Republic of South Sudan   143 Can I export equipment for use in South Sudan’s oil sector?144 Can I transship equipment through Sudan to use in South Sudan?145 Do I need any additional authorization from OFAC to engage in particular activities related to South Sudan’s oil sector, such as paying pipeline or port fees?146 Can I participate in the refining of Southern Sudanese crude oil in refineries located in Sudan?147 Does this mean I can do business in Sudan’s oil sector now?148 Can I use a bank that is owned by the Government of Sudan to facilitate a payment for oil-related activities in South Sudan?  Question on Executive Order 13664, "Blocking Property of Certain Persons with Respect to South Sudan"   368 Are humanitarian aid groups prohibited from making payments to or otherwise transacting with non-designated individuals or entities in South Sudan, including militias and armed groups under the command or control of a designated individual?   Questions Regarding CISADA (Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010)   149 What activities by foreign financial institutions can subject them to CISADA sanctions?150 Where can I find a list of Islamic Revolutionary Guard Corps (IRGC) affiliates and Iran-linked financial institutions “blocked pursuant to IEEPA”?151 How do the Iranian Financial Sanctions Regulations define “U.S. financial institutions”?152 How do the Iranian Financial Sanctions Regulations define “foreign financial institutions”?153 How do the Iranian Financial Sanctions Regulations (IFSR) define the term “knowingly”?154 How does the Treasury Department determine whether a transaction or financial service is “significant” for purposes of the Iranian Financial Sanctions Regulations?155 When are the prohibitions and strict conditions on foreign financial institutions’ correspondent accounts or payable-through accounts in the United States effective?156 How will U.S. and foreign financial institutions know that the Treasury Department has made such a finding?157 How will the Treasury Department enforce the Iranian Financial Sanctions Regulations (IFSR) with respect to U.S. entities?158 Can the application of any part(s) of the Iranian Financial Sanctions Regulations be waived by the Department of the Treasury?159 Where can I find the text of the Iranian Financial Sanctions Regulations?   Questions Regarding Executive Order 13599 (Blocking Property of the Government of Iran and Iranian Financial Institutions)

On February 5, 2012, the President signed Executive Order 13599 to implement section 1245(c) of the National Defense Authorization Act for Fiscal Year 2012, Public Law 112-81 (“NDAA”) and to take additional steps with respect to Iran.  Effective as of 12:01 a.m. eastern standard time on February 6, 2012, the order blocks all property and interests in property of the Government of Iran (including the Central Bank of Iran), all Iranian financial institutions, and all persons determined by the Secretary of the Treasury, in consultation with the Secretary of State, to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to the order.

160 Section 1 of E.O. 13599 blocks all property and interests in property of the Government of Iran, including the Central Bank of Iran, and of all Iranian financial institutions, that are in the United States, that come within the United States, or that come within the possession or control of U.S. persons (including overseas branches). Can you provide further clarification about this provision of E.O. 13599?161 If all property and interests in property of the Government of Iran, including the Central Bank of Iran, and of all Iranian financial institutions are blocked, can I conduct transactions involving the Government of Iran that have been previously authorized by OFAC?162 Are U.S. persons still required to comply with the Iranian Transactions Regulations?163 What are the differences and similarities between E.O. 13599 and the Iranian Transactions Regulations? 164 The Iranian Transactions Regulations authorize U.S. depository institutions and U.S. registered brokers or dealers in securities to process transfers of funds to or from Iran if the transfer is a non-commercial, personal remittance. Are U.S. depository institutions and U.S. registered brokers or dealers in securities still authorized to process such payments to or from a Government of Iran-owned bank that is not otherwise designated pursuant to another part of 31 C.F.R. Chapter V?165 To what extent are U.S. persons expected to conduct enhanced due diligence to determine if transactions contain a Government of Iran interest?166 OFAC’s SDN List contains a list of entities identified by OFAC as being the Government of Iran. Should U.S. persons now block the property and interests in property of those entities? 167 OFAC has granted my company a license under the Trade Sanctions Reform and Export Enhancement Act of 2000 (“TSRA”) and the ITR. Can I continue to conduct the licensed transaction? 168 OFAC has issued me a (non-TSRA) specific license related to Iran, or the Government of Iran. Can I continue to conduct the licensed transactions?   Questions Regarding the NDAA (Section 1245 of the National Defense Authorization Act for Fiscal Year 2012)

On December 31, 2011, the President signed into law the National Defense Authorization Act for Fiscal Year 2012, Public Law 112-81 (“NDAA”).  Section 1245 of this statute requires the President to block the property and interests in property subject to U.S. jurisdiction of all Iranian financial institutions, including the Central Bank of Iran (“CBI”).  It also aims to reduce Iranian oil revenues and discourage transactions with the CBI by providing for sanctions on foreign financial institutions that knowingly conduct or facilitate certain significant financial transactions with the CBI.  Although the sanctions on foreign financial institutions authorized by section 1245 are similar to the financial sanctions under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(c)) (“CISADA”) (i.e., prohibiting and/or imposing strict conditions on opening or maintaining correspondent accounts or payable-through accounts in the United States), there are differences in the scope and operation of the two statutes.

169 What is the NDAA?170 What activities can trigger sanctions on a foreign financial institution under the NDAA?171 Does the NDAA repeal or amend Section 104(c) of CISADA?172 How does Executive Order 13599, “Blocking Property of the Government of Iran and Iranian Financial Institutions,” and the blocking of all Iranian financial institutions affect the financial sanctions provisions in CISADA? Do CISADA sanctions now apply to financial transactions with any Iranian financial institution?173 Are there any exceptions to the sanctions provisions in the NDAA?174 What are definitions for the following NDAA terms: “significant financial transaction,” “knowingly,” “owned or controlled by the government of a foreign country,” “food, medicine, and medical devices,” “foreign financial institution,” “Iranian financial institution,” “significantly reduced,” and “whether the price and supply of petroleum and petroleum products produced in countries other than Iran is sufficient”?175 What is the scope of “petroleum products” under the law? 176 If oil is being provided as payment for an outstanding debt, is such a transfer considered a “financial transaction”? 177 If the CBI is involved in providing settlement services for a transaction, or is otherwise acting solely as an intermediary in a transaction between a non-designated Iranian bank and a foreign financial institution, is the foreign financial institution deemed to be engaging in a transaction with the CBI?178 Are barter trades involving the CBI considered “financial transactions” under Section 1245? 179 Does the definition of “significant financial transaction” exclude the passive holding of CBI reserves? Is the U.S. willing to give assurances that this will not be a basis for sanctions?180 Are payments made under contracts existing prior to the date of enactment of the NDAA statute (December 31, 2011) exempted from the definition of “significant transactions”?181 Will the U.S. refrain from sanctioning foreign financial institutions that receive funds from the CBI to repay loans? What if these loans were granted for projects that might be subject to the food, medicine, and medical device exemptions under the NDAA?182 Is there a difference between entities that have been designated by the United States Government for illicit conduct, such as proliferation of weapons of mass destruction or support for terrorism, and those that are being blocked under E.O. 13599? How can I tell which entities appear on the SDN List for which reasons?   Questions Regarding Executive Order 13606 (the GHRAVITY E.O.)

On April 22, 2012, the President signed Executive Order 13606 Blocking The Property And Suspending Entry into the United States of Certain Persons with Respect to Grave Human Rights Abuses by the Governments of Iran and Syria Via Information Technology (the “GHRAVITY E.O.”). Effective 12:01 a.m. eastern daylight time on April 23, 2012, the GHRAVITY E.O. blocks all property and interests in property of persons listed in its Annex, and all persons determined by the Secretary of the Treasury, in consultation with or at the recommendation of the Secretary of State, to meet the criteria in the order.

183 Why did the President issue the GHRAVITY E.O.?184 What does the GHRAVITY E.O. do?185 What type of activities does the GHRAVITY E.O. target?186 How do I know that a person has been designated under the GHRAVITY E.O.?187 Does the GHRAVITY E.O. prohibit me from exporting technology to companies that do business with Iran or Syria?188 If I am a non-U.S. company that exports information and communications technology to Iran or Syria, will I be designated under the GHRAVITY E.O.?189 Would I need authorization from OFAC or BIS if I wanted to export goods or technology to persons blocked under the GHRAVITY E.O.?190 Are existing licenses issued by the U.S. Government involving persons designated under the GHRAVITY E.O. still valid?   Questions Regarding Executive Order 13608 “Prohibiting Certain Transactions with and Suspending Entry into the United States of Foreign Sanctions Evaders with Respect to Iran and Syria”    191 What does Executive Order 13608 “Prohibiting Certain Transactions with and Suspending Entry into the United States of Foreign Sanctions Evaders with Respect to Iran and Syria”  do?192 Why was this authority needed?193 What are the repercussions of an individual or entity being identified under  Executive Order 13608?194 Are U.S. persons required to block the property of individuals and entities identified under Executive Order 13608? 336 How do I know whether a person is identified under E.O. 13608?195 I am a financial institution.  What do I do if I receive a wire transfer involving a listed party?196 I am a financial institution and I hold an account for a listed person.  What do I do with the funds?197 What are U.S. persons obligated to do with property of a person listed under  Executive Order 13608?198 May a U.S. person deal with an Executive Order 13608-listed person so long as the dealing does not involve Iran or Syria?  199 How is an identification or listing under Executive Order 13608 different from a designation?200 How is this different from lists maintained by the Department of Commerce?201

May a U.S. person deal with a person listed under Executive Order 13608 in a transaction that was previously licensed by OFAC? 

202 What if the transaction is already underway?203 Can a U.S. person use a listed person to facilitate personal remittances to or from Iran or Syria?204 Will Treasury pursue an enforcement action before identifying or listing a person pursuant to Executive Order 13608.?   Questions Related to Treasury CISADA Findings Against Bank of Kunlun    207 What were the criteria for this finding? How many other institutions were you looking at and why did you decide to take action against Bank of Kunlun?208 How are you defining “significant” transactions and financial services?209 What happens to the correspondent and payable-through accounts held by Bank of Kunlun in the United States? 210 What are the consequences for a U.S. financial institution that maintains or opens a new correspondent or payable-through account for Bank of Kunlun? 211 If a foreign financial institution continues to do business with Bank of Kunlun, could that lead to a CISADA finding against the other institution212 Does this finding affect Bank of Kunlun’s branches or subsidiaries around the world? Does this finding affect any holding companies?213 Are United States financial institutions that do not hold correspondent or payable-through accounts for Bank of Kunlun required to block or reject transactions that otherwise involve Bank of Kunlun?214 What is the licensing process for U.S. financial institutions that need to conduct transactions in order to close correspondent or payable-through accounts with a foreign financial institution sanctioned pursuant to CISADA? 215 What is the difference, in practical effect, between this and a designation under one of your other authorities, like E.O. 13382?   Questions Related to Executive Order 13622, “Authorizing Additional Sanctions With Respect to Iran”

On July 30, 2012, the President signed Executive Order 13622 to authorize additional sanctions with respect to Iran. Effective as of 12:01 a.m. Eastern Standard Time on July 31, 2012, the order provides additional sanctions authorities to the Secretary of the Treasury and the Secretary of State. The order builds, in part, on prior authorities set forth in the National Defense Authorization Act for Fiscal Year 2012 (“NDAA”) and in the Iran Sanctions Act of 1996, as amended (“ISA”).

216 What does E.O. 13622 “Authorizing Additional Sanctions With Respect to Iran” do?217 Why was this authority needed?218 What constitutes a “significant” financial transaction under the new E.O. 13622? Is there a certain dollar threshold?219 Does E.O. 13622 mean that Iranian trade partners should no longer buy petroleum products from Iran? How will this affect exports of Iranian oil?220 Does E.O. 13622 mean you are designating NIOC and NICO? Can countries that have been excepted from NDAA sanctions still purchase oil through these companies without facing sanctions?221 E.O. 13622 targets transactions between foreign financial institutions and NIOC or NICO. What about a NIOC or NICO subsidiary? Are transactions with those entities also sanctionable under this E.O.?222 Does E.O. 13622 make sanctionable activities related to the pipeline project to supply natural gas from the Shah Deniz gas field in Azerbaijan to Europe and Turkey, given that NICO reportedly has a 10 percent stake in the project?223 Are barter arrangements or other non-cash trade transactions involving petroleum, petroleum products, or petrochemical products originating from Iran sanctionable under the terms of the new E.O. 13622?224 What are the definitions of “petroleum products” and “petrochemical products”?   Questions Related to Humanitarian Assistance to Syria

The United States government is working with the international community to provide urgently needed humanitarian assistance to the Syrian people while applying comprehensive sanctions against the Government of Syria and targeted sanctions on key individuals and entities supporting the Assad regime, in order to continue pressuring the Syrian government to stop its human rights abuses and other illicit activities. The following frequently asked questions provide an overview of the U.S. Department of the Treasury’s Syria sanctions program and guidance to the public on sending remittances, goods and services, and charitable assistance to Syria.

For additional Treasury guidance on protecting charitable donations from abuse, please view this document or visit this website: www.treasury.gov/resource-center/terrorist-illicit-finance/Documents/Treasury%20Charity%20FAQs%206-4-2010%20FINAL.pdf. Additional questions may be directed to Treasury’s Office of Foreign Assets Control (OFAC) hotline at (800) 540-6322 or (202) 622-2490.

 225 Why does the United States have sanctions against Syria and what does that mean for me? 226 How can I help the Syrian people while making sure to abide by the U.S. sanctions? 227 May I continue to send money to family or friends in Syria?  228 May I send personal remittances through the Commercial Bank of Syria, the Syrian-Lebanese Commercial Bank, or the Syria International Islamic Bank (SIIB) to family or friends in Syria? 229 Do I need a specific license from OFAC to send U.S.-origin food or medicine to Syria? 230 Can I give donations to NGOs to help the Syrian people?  231 Can U.S. NGOs deliver humanitarian assistance directly to Syria?  232 As an individual, can I send financial donations directly to Syria in support of charitable activities under General License No. 11?   Questions Related to Determination Pursuant to Section 312 of the Iran Threat Reduction and Syria Human Rights Act

Section 312 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (ITRSHRA) requires the Secretary of the Treasury, no later than 45 days after the date of the enactment of ITRSHRA, to determine whether the National Iranian Oil Company (NIOC) or the National Iranian Tanker Company (NITC) is an agent or affiliate of Iran’s Islamic Revolutionary Guard Corps (IRGC), and to report to Congress on these determinations and the reasons for them. On September 24, 2012, the Department of the Treasury made a determination that NIOC is an agent or affiliate of the IRGC. Based on the information currently available, Treasury is not able to determine at this time whether NITC is an agent or affiliate of the IRGC.

233 Isn’t NIOC already subject to sanctions?234 What is the effect of the NIOC determination? Are there CISADA implications?235 What are the implications for petroleum purchase transactions involving NIOC by financial institutions and entities in countries that have received a significant reduction exception from the Secretary of State?236 Does the determination regarding NITC mean that there is no affiliation between NITC and the IRGC?237 How does the effect of this determination compare to the effect of section 1(a) of Executive Order 13622 as to transactions with NIOC?   Questions Related to Section 4 of Executive Order "Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Threat Reduction and Syria Human Rights Act of 2012 and Additional Sanctions with Respect to Iran"

An Executive Order of October 9, 2012, “Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Threat Reduction and Syria Human Rights Act of 2012 and Additional Sanctions with Respect to Iran,” (the “Order”) implements certain statutory requirements of the Iran Threat Reduction and Syria Human Rights Act of 2012 (the “TRA”), including amendments to the Iran Sanctions Act and the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. Specifically, the Order implements the requirements of Sections 204, 402, and 403 of the TRA. In addition, consistent with Section 218 of the TRA, Section 4 of the Order prohibits foreign subsidiaries (defined below) of United States persons from knowingly violating the Iranian Transactions Regulations, E.O. 13599, section 5 of E.O. 13622, or Section 12 of the Order, and provides for civil penalties on the U.S. parent company for any such violations.

238 What is the new prohibition on foreign subsidiaries of U.S. persons, and how does it work?239 Are foreign subsidiaries of U.S. companies covered under OFAC general licenses and/or permitted to apply for specific licenses from OFAC?240 Is there a wind-down or safe harbor provision in Section 4 of the Order?   Questions Related to the Iranian Transactions and Sanctions Regulations and the Statement of Licensing Procedure on Support Of Human Rights-, Humanitarian-, and Democracy-Related Activities With Respect to Iran

The Office of Foreign Assets Control ("OFAC") issued a final rule in the Federal Register on October 22, 2012, changing the heading of the Iranian Transactions Regulations, 31 C.F.R. part 560 (the "ITR"), to the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (the "ITSR"), and amending the renamed ITSR to implement Executive Order ("E.O.") 13599 (other than section 11) and sections 1245(c) and (d)(1)(B) of the National Defense Authorization Act for Fiscal Year 2012 (the "NDAA"). These new regulations implement the blocking of the Government of Iran and all Iranian financial institutions pursuant to E.O. 13599 and the NDAA.

OFAC is adding numerous new sections to the ITSR, including prohibitions, definitions, interpretations, and licensing provisions. OFAC also is revising many existing sections of the ITSR in order to take account of the new government-wide blocking as well as the blocking of all Iranian financial institutions. Due to the extensive nature of these and other amendments described below, OFAC is reissuing the ITSR in their entirety.

In addition, OFAC is publishing on the Iran section of its Web site a Statement of Licensing Procedure on Support of Human Rights-, Humanitarian-, and Democracy-Related Activities with Respect to Iran. The Statement of Licensing Procedure reflects procedures established pursuant to the Iran Threat Reduction and Syria Human Rights Act of 2012 (the "TRA"), which was signed into law by the President on August 10, 2012.

241 What are the major changes that the ITSR implement in superseding the ITR?242 The ITSR includes revisions to the ITR pertaining to the transfer of funds to or from Iran.  Accordingly, how may I transfer funds to or from Iran that arise from, and are ordinarily incident and necessary to give effect to, an underlying transaction that is authorized under the ITSR?243

How can I send personal remittances to or from Iran under the ITSR?

244

What effect will the ITSR have on Iranian-Americans and the people of Iran?

245 What does the Statement of Licensing Procedure on Support of Human Rights-, Humanitarian-, and Democracy-Related Activities with Respect to Iran do?   Questions Relating to the Implementation of Section 504 of the Iran Threat Reduction and Syria Human Rights Act of 2012

On August 10, 2012, the President signed into law the Iran Threat Reduction and Syria Human Rights Act of 2012, Public Law 112-158 (“TRA”). Section 504 of the TRA amends section 1245(d)(4)(D) of the National Defense Authorization Act for Fiscal Year 2012, Public Law 112-81 (“NDAA”), which the President signed into law on December 31, 2011. The section 504 amendments to the NDAA took effect February 6, 2013. Amendments to the Iranian Financial Sanctions Regulations, 31 C.F.R. part 561 (the “IFSR”) were published on March 15, 2013, to implement sections 503 and 504 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (the “TRA”) and certain provisions of Executive Order 13622 of July 30, 2012.

254 What does section 504 of the TRA do?255 Do the section 504 modifications restrict any other dealings with Iran?256

What transactions are impacted by section 504 of the TRA?

257

To which jurisdictions does the significant reduction exception apply?

258 What is meant by section 504’s requirement that bilateral trade consist of trade in goods and services between the country with primary jurisdiction over the FFI and Iran?259 What can a FFI do with the funds resulting from the import of Iranian-origin goods or services once the funds are credited to an account? Can funds be transferred to other accounts?260 What is a SPECIAL PURPOSE ACCOUNT for purposes of the NDAA’s significant reduction exception?261 Are there any circumstances in which funds can be transferred to third-country financial institutions?262 Can funds be withdrawn from the RECIPIENT ACCOUNT or a SPECIAL PURPOSE ACCOUNT?263 Who can receive payments from funds credited to a RECIPIENT ACCOUNT or SPECIAL PURPOSE ACCOUNT?264 Can funds be remitted to Iran or the GOI without exposure to sanctions?265 Can the funds be used for sales made under the Humanitarian Exception?314 Can an exporter of agricultural commodities, food, medicine, or medical devices get paid out of a Central Bank of Iran (CBI) account at a foreign financial institution (FFI) in a country with a significant reduction exception, even though the exporter is located in a third-country? Can the third-country exporter’s bank handle this transaction?266 Does the November 8, 2012 designation of NIOC under E.O. 13382 impact the scope of permissible transactions by FFIs in significantly reducing countries?267 What are definitions for the following NDAA terms: “significant financial transaction,” “knowingly,” “food, medicine, and medical devices,” “foreign financial institution,” and “country with primary jurisdiction over the FFI,”?   
Questions Related to Burma Sanctions
268 What recent steps has the United States taken to ease U.S. economic and trade sanctions against Burma?269 What U.S. economic and financial sanctions remain on Burma?359 Which banks in Burma are available to U.S. persons?270 Can U.S. financial institutions enter into direct correspondent relationships with Burmese financial institutions that are not blocked?271 Does Burma GL 16 authorize U.S. persons to open accounts at blocked Burmese banks?272 Does Burma GL 19 authorize new investment with the four banks?273 Does Burma GL 19 unblock property of the four banks?274 Is the exportation of financial services to the Burmese Ministry of Defense, state or non-state armed groups, or entities owned 50 percent or more by any of the foregoing only prohibited in connection with the provision of security services?275 What is meant by “any state or non-state armed group”? Does this include private security firms?276 “Any state or non-state armed group” is not limited to armed groups in Burma, but applies globally?277 What about prohibitions in the JADE Act on dealing with the State Peace and Development Council (SPDC) or any entity owned, controlled, or operated by the SPDC? Is there a chance that we could accidentally do business with the SPDC and be subject to enforcement measures?278 Does Burma GL 17 authorize U.S. persons to facilitate new investment by foreign persons?279 Does Burma GL 17 authorize investment in a third-country company whose main business activity is in Burma?280 Who needs to report on their activities in Burma?281 Is the $500,000 threshold an annual threshold, or do you accumulate investments over several years, with reporting triggered when you finally reach $500,000?282 What happens if you sell all or part of your investment?283 Does leasing office space constitute a new investment if the office is used for sales of goods or services?284 Are U.S. persons who are employed by or otherwise work for foreign persons engaged in new investment subject to the Reporting Requirements?285 If a Burmese Government minister is an SDN, how does that impact the ministry he leads?286 What are the plans to update the SDN list for Burma?360 Can U.S. persons sell goods or services to Burmese persons who are not on the SDN list or blocked?   
Questions Related to the Issuance of the Executive Order “Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect to Iran” and the Implementation of Certain Provisions of the Iran Freedom And Counter-Proliferation Act of 2012 (IFCA)

On June 3, 2013, the President signed an Executive Order (E.O.) “Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect to Iran.” The E.O. implements certain statutory provisions of the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) and authorizes the imposition of additional sanctions with respect to Iran. Most of the IFCA provisions target conduct occurring on or after July 1, 2013. The E.O. becomes effective on July 1, 2013.

   General Questions   313 What is the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA)?288 What is the purpose of the Executive Order of June 3, 2013 entitled “Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect to Iran” (E.O.)?   Iran Freedom and Counter-Proliferation Act of 2012   289 How will the following IFCA terms be interpreted: “Iran,” “knowingly,” “significant,” “transfer,” “Iranian person included on the SDN List ”?290 Are payments or deliveries that are made on or after July 1, 2013, for contracts that existed prior to July 1, 2013, exempted from IFCA provisions?291 How does the Executive Order relate to the IFCA provisions?292 What are the implications of IFCA on the provision of humanitarian goods to the people of Iran?     Sanctions Relating to Iran’s Energy, Shipping, and Shipbuilding Sectors  IFCA provides for sanctions involving activities or transactions related to Iran’s energy, shipping, and shipbuilding sectors.    293 What will the “energy, shipping, and shipbuilding sectors of Iran” mean for the purposes of IFCA?294 How will I know if someone is part of Iran’s energy, shipping, or shipbuilding sectors or is a port operator in Iran?295 What are goods or services used in connection with Iran’s energy, shipping, or shipbuilding sectors for purposes of section 1244(d)(3)?296 Will payment for bunkering of third-country ships carrying non-sanctionable goods to or from Iran be subject to sanctions?297 Are there any exceptions to the sanctions provisions of section 1244 of IFCA?315 Will routine payments or fees be subject to sanctions if they are made to a person determined to be a port operator in Iran and if the vessel is carrying non-sanctioned goods?     Sanctions Relating to the Sale, Supply, or Transfer of Certain Materials to or from Iran  IFCA provides for sanctions involving the sale, supply, or transfer of certain materials to or from Iran.    298 What materials are considered graphite, raw or semi-finished metals?299 What are considered precious metals?300 For purposes of sanctions under section 1245, how will I know which sectors are controlled by Iran’s Islamic Revolutionary Guard Corps?301 How will the determination be made as to whether materials are used in a manner that would make them subject to sanctions under section 1245 of IFCA? 302 Are there any exceptions to section 1245 of IFCA?     Sanctions Relating to Insurance, Reinsurance, or Underwriting   303 Which insurance, reinsurance, or underwriting activities are potentially subject to sanctions under section 1246(a)(1)?304 Are there exceptions to insuring, reinsuring, or underwriting sanctioned activities?     Sanctions Relating to FFIs that Facilitate Transactions with SDNs   305 Sanctions under section 1247 of IFCA apply to FFIs that facilitate financial transactions on behalf of an Iranian person on the SDN List. How does the Executive Order relate to section 1247?   Executive Order   306 How does the Executive Order relate to the IFCA provisions?307 In addition to implementing certain IFCA provisions, what else does the Executive Order do?     Sanctions Relating to the Provision of Material Assistance to Certain Persons   308 What are the implications of the material assistance provision of the Executive Order?     Sanctions Relating to Certain Transactions Involving the Iranian Rial   309 What transactions involving the Iranian rial will be subject to sanctions?     Sanctions Relating to Iran’s Automotive Sector   310 What is considered Iran’s automotive sector for purposes of the Executive Order?311 What are goods or services used in connection with Iran’s automotive sector for purposes of the E.O.?316 Is the sale, supply, or transfer of finished vehicles or “auto kits” to Iran sanctionable under the E.O.?317 Is the sale, supply, or transfer of goods or services for the maintenance of finished vehicles sanctionable under the E.O.?      Financial Sanctions Relating to Financial Transactions on Behalf of Certain Persons   312 How does the Executive Order tighten the financial sanctions applicable to FFIs under section 1247 of IFCA?   
Questions regarding the general licenses (GL) for agricultural commodities, medicine, and medical devices in the Iranian Transactions and Sanctions Regulations
 318  Does the GL for basic medical supplies authorize the export of all medical devices? 319  Does the GL for basic medical supplies authorize the export of these items to all entities in Iran? 361 What items and persons are excluded from the agricultural commodities general license in the Iranian Transactions and Sanctions Regulations? 362 Is the export or reexport of non-U.S.-origin agricultural commodities, medicine, or medical devices to Iran authorized? 363 Is the export or reexport by non-U.S. persons of agricultural commodities, medicine, or medical devices to Iran authorized? 364 Who can apply for a specific license if an export or reexport to Iran is not authorized by general license?  365 What is authorized with respect to brokerage services related to exports or reexports of agricultural commodities, medicine, or medical devices to Iran? 366 Do I still need to come in to OFAC for a license to export certain types of agricultural commodities to Iran? 367 What is the definition of a “bioactive peptide”?   
Questions Relating to the Temporary Sanctions Relief to Implement the Joint Plan of Action between the P5 + 1 and the Islamic Republic of Iran
320 What types of sanctions relief are provided to Iran pursuant to the Joint Plan of Action (JPOA), reached on November 24, 2013, between the P5 + 1 and the Islamic Republic of Iran? 321 How does the JPOA impact U.S. sanctions on Iran? 322 Are U.S. persons able to engage in any of the transactions with Iran outlined in the JPOA?323 The JPOA stipulates that U.S. sanctions on Iran’s petrochemical exports, as well as sanctions on associated services, will be suspended for six months. What does the suspension entail and which petrochemicals are covered? 324 Does the petrochemical sanctions relief in the JPOA extend to dealings with any SDNs?325 The JPOA stipulates that U.S. sanctions related to gold and other precious metals will be suspended for six months. What does the suspension entail? 326 The JPOA stipulates that U.S. sanctions related to Iran’s automotive industry will be suspended for six months. What does the suspension entail? 327 The JPOA provides that the P5+1 will enable the repatriation of $4.2 billion of Iranian revenue held abroad. How will this provision be implemented?328 What does the channel to facilitate humanitarian-related transactions do? 329 The JPOA provides that the U.S. will license (i) the supply and installation in Iran of spare parts for safety of flight for Iranian civil aviation and associated services and (ii) safety related inspections and repairs in Iran as well as associated services. What does this entail?330 What does the pause in the reduction of imports in Iranian crude oil mean?331 If contracts related to activities for which sanctions relief has been provided pursuant to the JPOA are entered into during the six-month period, and such contracts terminate after the period ends, will transactions or other activities undertaken pursuant to those contracts after the end of the six months be sanctionable?332 Will payment received during the six-month period of the JPOA for activity covered by the JPOA that took place prior to start of the suspension of sanctions benefit from the sanctions relief?333 How does the temporary relief provided by the JPOA affect the provision of insurance for transactions involving Iran?334 Are transactions with Tidewater Middle East Co. still sanctionable?   
Questions Relating to Iranian General License D-1

On May 30, 2013, the Department of the Treasury, in consultation with the Departments of State and Commerce, issued General License D (“GL D”) authorizing the export and reexport to Iran of certain hardware, software, and services incident to personal communications. On February 7, 2014, the Department of the Treasury, in consultation with the Departments of State and Commerce, issued amended Iranian General License D-1 (“GL D-1”), which clarifies certain aspects of GL D and adds certain new authorizations. Effective February 7, 2014, GL D-1 replaces and supersedes in its entirety GL D.

  General Questions337 What are key changes made by amended General License D-1?338 With respect to the authorizations in paragraphs (a)(1) and (a)(2), what services and software are covered?339 With respect to the authorization in paragraph (a)(3), do exporters need to make a determination as to whether an export of an item or service listed in the Annex to GL D-1 is “incident to personal communications”?340 What should I do if I am unsure whether an item or service is covered by GL D-1? 341 May a non-U.S. person export, reexport, or provide to Iran hardware and software that is subject to the EAR pursuant to GL D-1?342  Does GL D-1 authorize U.S. persons located outside the United States to export or reexport to Iran certain specified hardware or software that is not subject to the EAR? 343  Does GL D-1 authorize the exportation to Iran and importation into the United States of personal communication devices by persons travelling from the United States to Iran and back to the United States?344 How do the authorizations in paragraphs (a)(1), (a)(2), and (a)(6) of GL D-1 compare to the previously existing general license in 31 C.F.R. § 560.540 authorizing certain services and software incident to Internet-based communications? 345  How can U.S. companies arrange for payment from Iran for exports authorized under GLD-1?346  What kind of due diligence is required for the exportation of fee-based services, software, or hardware authorized by GL D-1? 347  Are there any restrictions as to the use of the Farsi language in authorized advertising or software?348 May U.S. persons employ agents in Iran to facilitate sales, create or fund a physical sales presence on the ground in Iran, or utilize Iranian commercial marketing services in furtherance of exports authorized under GL D-1?     Questions as to Specific Software, Hardware, and Services349 Are all applications designed to run on mobile operating systems (“apps”) covered by GL D-1?350  Is the exportation of anti-virus, anti-malware, anti-tracking, and anti-censorship software authorized?351  What do Secure Socket Layers (SSLs), listed in the Annex to GL D-1, encompass?352  Are mobile phone accessories and computer accessories and peripherals authorized for export under GL D-1?353 Is the exportation of parts or components for authorized hardware, such as microprocessors, authorized under GL D-1?354 Does GL D-1 authorize the export of bundled software that includes both software authorized by GL D-1 and software that is not authorized by GL D-1? 355  Does GL D-1 authorize the exportation to Iran of fee-based desktop publishing software and productivity software suites used to publish documents, presentations, spreadsheets, charts, music, movies, and digital images?356 Does GL D-1 authorize the exportation of fee-based cloud computing services to Iran?357 For purposes of category (5) of the Annex to GL D-1, what would be considered “software required for effective consumer use” of personal computing devices, laptops, and tablets?358 What are “residential consumer” satellite terminals and transceiver equipment?   
Questions Related to Sectoral Sanctions under Executive Order 13662
   370 What is this prohibition under Executive Order (E.O.) 13662?  Is it a blocking action?371 What does OFAC interpret to be debt and equity?  Are there other prohibited activities under these directives?  Can U.S. financial institutions continue to maintain correspondent accounts and process U.S. dollar-clearing transactions for the entities identified by this order?372 Does today’s action prohibit U.S. persons from entering into derivatives contracts linked to debt or equity issued on or after July 16, 2014 by the entities identified today?373 Do the prohibitions under E.O. 13662 also extend to debt and equity issued by entities owned 50 percent or more by the entities identified by this order, as per guidance OFAC issued on February 14, 2008?374 If I own a Kalashnikov product, is that product blocked by sanctions?  Am I able to resell a Kalashnikov product at a gun show or other secondary market?375 If I have Kalashnikov products in my inventory, can I sell them?   
http://www.treasury.gov/resource-center/faqs/Sanctions/Pages/ques_index.aspx#sectoral