Case No. IA-2012-297129-1
The Associated Press
c/o [ ]
Bryan Cave LLP
1155 F Street, N.W.
Washington, D.C. 20004
Dear [ ]
This responds to your correspondence dated September 5, 2012 (the "Application"), on behalf of The Associated Press and its foreign affiliates ("AP"), to the Office of Foreign Assets Control ("OFAC"). You request guidance regarding the applicability of the Iran Threat Reduction and Syria Human Rights Act of 2012 (implemented through Executive Order 13628) with respect to AP’s foreign affiliates operating in Iran. Specifically, you request guidance as to whether all transactions necessary for and related to the operation and management of a new bureau in Iran are prohibited and the implications of the prohibitions outlined by Executive Order 13628.
The Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560 (the "ITSR"), generally...
1) BACKGROUND
This is a general restatement of the scope of 560.519, except for the important note that "AP’s foreign affiliates would also qualify for the general authorization pursuant to section 560.519 of the ITSR." OFAC appears to presume that these affiliates are non-U.S. persons, U.S.-owned or -controlled foreign entities. The AP does have many wholly owned, foreign subsidiaries.
The letter was issued subsequent to the effective date of Executive Order 13628 of October 9, 2012, extending certain prohibitions of the ITSR to U.S.-owned or -controlled foreign entities, but prior to the implementation of the same in the ITSR as 560.215. Likewise, at the time the guidance was issued, there was no GL at 560.556 (Foreign entities owned or controlled by U.S. persons...