Case No. IA-17831
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Dear [ ]
This responds to correspondence dated November 16 2011, to the Office of Foreign Assets Control ("OFAC"), on behalf of[ ] (the "Client"), requesting guidance as to whether certain transactions are subject to the transactions Regulations, 31 C.F.R. Part 560 (the "ITR"). According to your letter, [ ] has reached a settlement agreement with your Client, a permanent resident of the United States, in an arbitration proceeding in the United States and now seeks to disburse payment in full to your Client's account at [ ] pursuant to this agreement. When arbitration in this matter began, the Client was a resident of Iran.
The ITR generally prohibit the exportation, re-exportation, sale, or supply; directly or indirectly, from the United States or by a United...
1) The “Facilitation” of Underlying Transactions Occurring in the Past, But Subsequent to the “Effective Date” of Sanctions Prohibitions
560.206 of the ITSR prohibits “United States person[s], wherever located, [from] engag[ing] in any transaction or dealing in or related to” any “services for exportation…to Iran…” 560.301 (“Effective date”) provides that the effective date of ”the prohibitions and directives in [560.206] is 12:01 a.m., Eastern Daylight Time, August 20, 1997.” In addition, it is prohibited to “facilitate” any “transaction by a foreign person where the transaction by that foreign person would be prohibited by [] if performed by a United States person…”
If, hypothetically, the “Client” referred to in the guidance letter was a resident of Iran as of the time of the issuance of the guidance letter,...