Civil Enforcement Information (FOV) - State Street Bank and Trust Co.

Date issued: May. 28 2019

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TURBOFAC Commentary (1055 words)

Notes:

1) LEGAL BASIS FOR VIOLATION, AVAILABILITY OF GENERAL LICENSES AND EXEMPTIONS:

This appears to be the first enforcement action in almost a decade dealing solely with ITSR violations in connection with the provision of retail, non-commercial banking services to an individual or individuals "in Iran." See Civil Enforcement Information - Wells Fargo Bank, N.A. (1st action) (2010).

From a legal basis standpoint, the enforcement action aligns with OFAC's longstanding practice of interpreting 560.204 (in light of 560.410) as treating the provision of financial services to any person ordinarily resident in Iran as being exports "to Iran," even when the person at issue is a U.S. citizen and even when the accounts credited are not actually located in Iran or otherwise involve an Iranian financial institution. Compare Case No. IA-16053, and...