Financial Channels to Facilitate Humanitarian Trade with Iran and Related Due Diligence and Reporting Expectations

Date issued: Oct. 25 2019

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TURBOFAC Commentary (521 words)

Notes:

1) This document was released concurrent with FINceN "Imposition of Fifth Special Measure against the Islamic Republic of Iran as a Jurisdiction of Primary Money Laundering Concern." [1]

The FINceN determination imposed restrictions, not administered by OFAC, on foreign financial institutions’ (FFIs) correspondent accounts at covered U.S. financial institutions with respect to the processing of transactions involving Iranian financial institutions.

See also "Treasury and State Announce New Humanitarian Mechanism to Increase Transparency of Permissible Trade Supporting the Iranian People." [2]

From a strictly legal perspective, the "humanitarian mechanism" does not alter the scope of any OFAC-administered sanctions provision. Presumably, failure to use the mechanism will factor into whether, in the event that an FFI engages in potentially sanctionable conduct, the FFI is deemed to have "knowingly" done so. Likewise, use of the...