Civil Enforcement Information - Downey Savings and Loan

Date issued: May. 05 2006

TURBOFAC Commentary (141 words)

Notes:

Although not explicitly characterized as such in this action, OFAC considers the actions at issue an "export to Iran" (560.204) because the account holders were permanent residents of Iran, meaning that any services provided to them are services exported to a person "in Iran" within the meaning of 560.410.

If a person is within the U.S. legally, and then becomes "ordinarily resident" in Iran again, provisions of financial services to that person are prohibited unless specifically authorized or exempt from regulation. See Case No. IA-16053 - OFAC Response to Request for interpretive Guidance.

Compare Enforcement Release: Emigrant Bank, and note that while 560.517 of the ITSR (then ITR) authorized "[t]he maintenance of Iranian accounts, including the payment of interest and the debiting of service charges," there was no general authorization for operating the account (e.g. sending and receiving ordinary wires).