IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT DISCLOSURE
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which amended the Securities Exchange Act of 1934, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether, during the reporting period, it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted in compliance with applicable laws and regulations.
Revenue during 2015 attributable to the transactions or dealings by the Company described below was approximately $702,700, with net profit from such sales being a fraction of the revenues.
During 2015, one of the Company’s divisions, a provider of energy-related information...
1) THE WMDPSR AND THE INFORMATIONAL MATERIALS EXEMPTION
While the WMDPSR clearly contains an informational materials exemption (544.206(b)), it is not common to see public evidence of a company availing itself of it, particularly given the transaction amounts and the sensitive context of information that would aid the Iranian petrochemical industry.
2) INFORMATIONAL MATERIALS AND SECONDARY SANCTIONS
Irrespective of the WMDPSR and ITSR’s exemptions for informational materials, note that there is nothing in IFCA (1244(C)(2)(c)(iii)) and similar secondary sanctions authorities that exempts informational materials transactions from the scope of secondarily sanctionable "significant transactions" with Iranian entities listed on the SDN list as SDGTs or WMD proliferators.
While it is ordinarily assumed that transactions...