§560.410 Provision of services.
(a) The prohibition on the exportation, reexportation, sale or supply of services contained in §560.204 applies to services performed on behalf of a person in Iran or the Government of Iran or where the benefit of such services is otherwise received in Iran, if such services are performed:
(1) In the United States, or
(2) Outside the United States by a United States person, including by an overseas branch of an entity located in the United States.
(b) The benefit of services performed anywhere in the world on behalf of the Government of Iran is presumed to be received in Iran.
(c) The prohibitions on transactions involving blocked property contained in §560.211 apply to services performed in the United States or by U.S. persons, wherever located, including by an overseas branch of an entity located in the United States:
(1) On behalf of or for the benefit of the Government of Iran, an Iranian financial institution, or any other person whose property and interests in property are blocked pursuant to §560.211; or
(2) With respect to property interests of the Government of Iran, an Iranian financial institution, or any other person whose property and interests in property are blocked pursuant to §560.211.
(d) Example. A United States person is engaged in a prohibited exportation of services to Iran when it extends credit to a third-country firm specifically to enable that firm to manufacture goods for sale to Iran or for an entity of the Government of Iran. See also §560.416.
1) This provision is substantively similar to a like provision contained in all non-abbreviated sanctions regulations, except that (i) the versions found in IEEPA-based embargo regulations (560.410 ITSR, 510.405 NKSR, 542.405 SySR, 589.405 Crimea) cover services exported to an embargoed country, in addition to the provision of services to blocked persons and with respect to blocked property, and (ii) versions of this provision implemented 1-21-22 and thereafter are titled "Provision and receipt of services," instead of just "Provision of services," and there is a subsection specifying that "[t]he prohibitions on transactions contained in § [5XX].201 apply to services received in the United States or by U.S. persons, wherever located, where the service is performed by, or at the direction of, a person whose property and interests in property are blocked pursuant to § 5XX.201." This language should be “read into” all of the pre-existing ordinary “provision of services” provisions. The "at the direction of" in the more recent version is a notable interpretation of the scope of the blocking prohibition that did not appear in OFAC's regulations, in this provision or elsewhere, prior to 1-21-22.
For comments on the scope and significance of the provision, see Notes Common to “Provision of services” Interpretive Provisions. That note discusses this provision of the ITSR in some detail, but note that the apparently limited jurisdictional scope of the provision (subsections (a)(1) and (a)(2)) is augmented by 560.215, making it so that non-U.S. person companies owned or controlled by U.S. persons are subject to the provision as well.
2) The FNKSR, NTSR, ITSR and TSR versions of this provision are the only to lack reference to medical (or emergency) medical services, in light of the lack of that GL in the regulations.