842. What does General License L (GL L) authorize with respect to the financial sector of Iran and Iranian financial institutions (Iranian FIs) now sanctioned pursuant to Executive Order (E.O.) 13902?
GL L authorizes under E.O. 13902 all transactions and activities involving Iranian FIs blocked pursuant to E.O. 13902 that are authorized, exempt, or otherwise not prohibited under the Iranian Transactions and Sanctions Regulations (ITSR). E.O. 13902, which was issued on January 10, 2020, is not incorporated into the ITSR at this time. However, GL L effectively extends the authorizations, exemptions, and activity otherwise excluded from prohibition under the ITSR to apply to those Iranian FIs blocked under E.O. 13902. This includes, but is not limited to, (i) transactions and activities authorized by general and specific licenses issued pursuant to the ITSR and (ii) transactions and activities ordinarily incident to such transactions and activities and necessary to give effect thereto that are consistent with section 560.405 of the ITSR. For example, if a U.S. person or a U.S.-owned or -controlled foreign entity relied on a general or specific license issued pursuant to the ITSR to engage in transactions and activities involving such Iranian FIs prior to these actions under E.O. 13902, GL L provides the additional OFAC authorization needed to continue to engage in such transactions and activities.
GL L does not authorize any transactions or activities that are otherwise prohibited by the ITSR, E.O. 13902, or any other part of 31 C.F.R. chapter V.
Please note that the exemptions and authorizations in the ITSR remain otherwise applicable according to their terms. In addition, pursuant to Section 11 of E.O. 13902, the prohibitions of E.O. 13902 do not apply with respect to any person for conducting or facilitating a transaction for the provision (including any sale) of agricultural commodities, food, medicine, or medical devices to Iran; pursuant to Section 12 of E.O. 13902, the prohibitions of E.O. 13902 do not apply with respect to transactions for the conduct of the official business of the United Nations (including its specialized agencies, programmes, funds, and related organizations) by employees, grantees, or contractors thereof.
Date Released
October 8, 2020
1) For comments on this item in the context of related documents issued on the same day, refer to Consolidated Comment on the Sanctioning of the Iranian Financial Sector Pursuant to E.O. 13902, General License L and Related FAQs Issued on 10-8-2020.