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31 CFR § 560.427 - Exportation, reexportation, sale or supply of financial services to Iran or the Government of Iran.

Date issued: Oct. 22 2012

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§560.427 Exportation, reexportation, sale or supply of financial services to Iran or the Government of Iran.
(a) The prohibition on the exportation, reexportation, sale or supply of financial services to Iran or the Government of Iran contained in §560.204 applies to:
(1) The transfer of funds, directly or indirectly, from the United States or by a U.S. person, wherever located, to Iran or the Government of Iran; and
(2) The provision, directly or indirectly, to Iran or the Government of Iran of insurance services, investment or brokerage services (including but not limited to brokering or trading services regarding securities, debt, commodities, options, or foreign exchange), banking services, money remittance services; loans, guarantees, letters of credit, or other extensions of credit; or the service of selling or redeeming traveler's checks, money orders, and prepaid access products.
Note to paragraph (a) of §560.427: See §560.516 of this part, which authorizes...

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TURBOFAC Commentary (557 words)

Notes:

1) This provision is unique to the ITSR, but as an interpretation of the scope of what constitutes a "financial service" of which the export would be prohibited by an ordinary IEEPA-based export ban, the provision has presumptive cross-programmatic applicability. The provisions cross-referencing the ITSR-specific banking provisions (e.g. 560.516 and 560.320) are not of cross-programmatic relevance.

2) This provision was issued shortly after the U.S. government's loss in United States v. Banki, 685 F.3d 99 (2nd Cir. 2011), where the 2nd Circuit Court of Appeals ruled that the version of the ITR in force at the relevant time was insufficiently clear on whether the use of hawalas and other informal remittance...