72. Can I send money to a sanctioned country using a third-country company’s website? Can I buy gifts for someone in a sanctioned country over the internet? The websites tell me that it’s ok because they themselves are not sanctioned parties.
You cannot do something indirectly that you would not be able to do directly. Therefore, these sites can be used to facilitate authorized transactions, but you cannot use them to perform a transaction which would be in violation of U.S. law. For example, the Cuban Assets Control Regulations (CACR) authorize any U.S. person to send $1,000 per quarter to close relatives in Cuba, provided that the recipient is not a prohibited official of the Government of Cuba, as defined in § 515.337 or a prohibited member of the Cuban Communist Party, as defined in § 515.338, or a close relative of such persons, as defined in § 515.339. See 31 CFR § 515.570(a) and (j) for additional applicable conditions. Subject to those conditions, the U.S. remitter can use a third-country provider to send these funds to Cuba. If the person attempts to send more than $1000 per quarter to any one individual, however, he or she may be in violation of U.S. law and subject to penalties. Another example is booking unauthorized travel to Cuba using an internet travel service provider in a third country. Spending money on unauthorized travel-related transactions involving Cuba is prohibited by the CACR, regardless of how the travel is booked or how it is paid for. The fact that the trip was booked through a third-country company, either in person or over the internet, is irrelevant.
Date Released
October 26, 2020
1) But see 560.550, requiring that certain otherwise-authorized remittances to Iran be processed through U.S. financial institutions only.
"Certain noncommercial, personal remittances to or from Iran authorized.
(a) In cases in which the transfer involves a noncommercial, personal remittance, the transfer of funds to or from Iran or for or on behalf of an individual ordinarily resident in Iran, other than an individual whose property and interests in property are blocked pursuant to § 560.211, is authorized, provided that the transfer is processed by a United States depository institution or a United States registered broker or dealer in securities and not by any other U.S. person; does not involve debiting or crediting an Iranian account; and is not by, to, or through the Government of Iran, as defined in § 560.304."
2) This blanket statement: "You cannot do something indirectly that you would not be able to do directly," has varying degrees of legal basis across sanctions programs, but OFAC's enforcement practice reflects a view that such dealings are prohibited cross-programmatically whether or not a given Executive Order or regulatory provision does or does not mention "indirect" dealings. See also Aug 13, 2014 "Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property are Blocked."
3) FAQ Amended on 10-26-2020 to account for the publication of an FR notice announcing certain remittance-related amendments to take effect on Nov. 26, 2020. For further details, see FAQ # 852, and comments thereto. FAQ also amended to update the per quarter remittance limit, from $2,000 to $1,000, in addition to remittance-related restrictions pertaining to certain Cuban Government-related persons that had been in effect prior to 10-26-2020.