AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
SUMMARY:The Department of the Treasury's Office of Foreign Assets Control (“OFAC”) is amending the Iranian Transactions and Sanctions Regulations (the “ITSR”) to implement section 218 and portions of sections 602 and 603 of the Iran Threat Reduction and Syria Human Rights Act of 2012; section 5, portions of section 6, and other related provisions of Executive Order 13622 of July 30, 2012; and section 4 of Executive Order 13628 of October 9, 2012. These amendments, inter alia, add a new section to the ITSR to prohibit certain transactions by entities owned or controlled by a U.S. person and established or maintained outside the United States. They also expand the categories of persons whose property and interests in property are blocked to include any person determined by the Secretary of the Treasury, in consultation with...
This FR notice provides the background explaining OFAC's implementation of Sec. 218 of the TRA, extending liability under the ITSR for certain transactions involving Iran to foreign companies owned or controlled by U.S. persons. The following passages are important as an explanation of how OFAC distinguishes between GLs that relate to offshore conduct that may not necessarily be prohibited in principle, and those GLs of which the scope pertains to activities all of which are within the otherwise applicable prohibitions:
Third, another general license, new section 560.556, is being added to subpart E of the ITSR to authorize an entity owned or controlled by a United States person and established or maintained outside the United States (a “U.S.-owned or -controlled foreign...