General Note on Notion of "Causing" Violations Abroad in General; The Distinction Between Sections 560.204 and 560.205 of the ITSR (System Ed. Note)

Last substantive commentary amendment:
Nov. 24 2023

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

TURBOFAC Commentary (2042 words)

General Note on Notion of "Causing" Violations Abroad in General; The Distinction Between Sections 560.204 and 560.205 of the ITSR (System Ed. Note)

1) NON-U.S. PERSONS "CAUSING" PRIMARY SANCTIONS VIOLATIONS FROM ABROAD

OFAC frequently charges violations of 560.204 (prohibited exports to Iran) in connection with penalties imposed on non-U.S. persons acting outside of the U.S. (See e.g. Aban Offshore Limited (2017), KMT Group AB (2013)). In those cases the penalized entities were not subject to the ITSR at all (including as a result of 560.215) and all of their actions took place outside of the U.S. On its face, 560.204 applies to exports by U.S. persons only. OFAC has also charged violations of both 560.203 and 560.204 for such conduct (see e.g. Civil Enforcement Information...