Civil Enforcement Information - Voipescrow Inc.

Date issued: Jan. 04 2008

TURBOFAC Commentary (217 words)

Notes:

OFAC determines (impliedly) that the sale of calling card minutes does not fall within the scope of transactions within or incident to the personal communications exemption (560.210(a)).

It is also implied that the "purchase of prepaid calling card minutes" is not covered by the telecommunications-related GL (560.508), at least not as it existed at the time. In 2008, 560.508 authorized "All transactions of common carriers incident to the receipt or transmission of telecommunications and mail between the United States and Iran" (https://www.govinfo.gov/content/pkg/CFR-2008-title31-vol3/xml/CFR-2008-title31-vol3-part560.xml).

The transaction here is not one "of" a common carrier. Note however that the telecommunications GL in the ITSR was amended in 2012 to authorize "All transactions with respect to the receipt and transmission of telecommunications involving Iran." The removal of the "of common carriers" language may change the analysis if OFAC dealt with this case today. See General Note on General Licenses for Transactions Related to Telecommunications and Mail.

Theory of liability was the import of goods/services from Iran; not the "export" of a financial service in the form of the attempt to send funds to Iran. OFAC subsequently began treating such attempted funds transfers as exports of financial services (see Civil Enforcement Information - An Unnamed Individual (4)).