OFAC Enforcement - Wells Fargo Bank, N.A. (1st action)

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (195 words)

Notes:

1) OFAC considers the provision of any service to anyone ordinarily resident in Iran to be an export "to Iran" (560.204, 560.410). In addition, a financial service provided to a person "in Iran" is prohibited even if that person is not ordinarily resident there, unless a general license or exemption applies.

This is a rare enforcement action in which the violation is described as an export of financial services to a person "located in" Iran, suggesting that OFAC did not make a determination that the person was "ordinarily resident" in Iran.

Query whether, if the account holder was a U.S. person traveling through Iran, account access is exempt from regulation as ordinarily incident to travel (appears so: Case No. IA-16053).

2) See the other Wells Fargo enforcement actions at Wells Fargo Bank, N.A. (2nd action) and Settlement Agreement (OFAC) - Wells Fargo Bank, N.A. (3rd action).

3) Compare Enforcement Release: Emigrant Bank, and note that while 560.517 of the (then ) 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).

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Civil Enforcement Information - Wells Fargo Bank, N.A. (1st action)

TURBOFAC Commentary (195 words)