Case No. IA-2013-302020-1

Date issued: Nov. 01 2013

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TURBOFAC Commentary (898 words)

Notes:

1) Part of the context of the request for guidance is the applicant receiving, up to that point and as of 1/2021, the largest sanctions related fine in history. See Civil Enforcement Information - BNP Paribas SA (2014).

2) The potential jurisdictional basis for a violation involving the proposed USD denominated securities clearing transaction would be the same as ordinary payment processing. A non-U.S. person not otherwise subject to the ITSR would, in this case, potentially "cause" a U.S. person bank or custodian of securities to, e.g., export of a financial service to Iran (560.204) or otherwise deal in blocked property (560.211) (see e.g. Civil Enforcement Information - UBS AG (2015), Clearstream Banking S.A (2014)).

3) The likely driver of the need to seek comfort was uncertainty as to...