Case No. IA-2012-299245-1

Date issued: Sep. 20 2013

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TURBOFAC Commentary (875 words)

Notes:

1) When the ITR was reissued as the ITSR in 2012, OFAC amended the general license at 560.516 in a few ways, one of which was to remove the language purporting to "authorize" U.S. banks to process funds transfers when:

"The transfer arises from an underlying transaction that is exempted from regulation pursuant to § 203(b) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)), such as an exportation to Iran or importation from Iran of information and informational materials, a travel-related remittance, or payment for the shipment of a donation of articles to relieve human suffering."

While this "authorization" provided comfort to banks that it could process payments where the transaction was exempt from regulation, it also...