Update on US Economic Sanctions - Iran

The US continues to impose economic sanctions on trade with respect to a number of countries, including Burma, Cuba, Democratic Republic of Congo, Iran, Iraq, Somalia, Sudan, Syria, Zimbabwe and others. The US also imposes economic sanctions on certain activities that are not country-specific, such as terrorism, narcotics trafficking, and trading in diamonds, and it prohibits dealing with persons and entities identified on OFAC's lengthy list of Specially Designated Nationals and Blocked Persons (the SDN List).

The Comprehensive Iran Sanctions, Accountability and Divestment Act 2010

On 1 July 2010, following on the heels of UN Security Council Resolution 1929, the US enhanced its economic sanctions against Iran through enactment of the Comprehensive Iran Sanctions, Accountability and Divestment Act 2010 (the 2010 Act). The 2010 Act expands the range of sanctions provided in the Iran Sanctions Act of 1996 (the 1996 Act). In particular, the 2010 Act provides for sanctions on anyone - not just US persons and companies - who:

Provides goods, services, technology, information or support above a threshold value that could directly and significantly facilitate the maintenance or expansion of Iran's domestic production of refined petroleum products; Provides to Iran refined petroleum products above a threshold value; or Sells, leases, or provides to Iran goods, services, technology, information or support above a threshold value that could directly and significantly contribute to the enhancement of Iran's ability to import refined petroleum products. Sanctions under the 2010 Act

The 2010 Act provides an increased range of potential sanctions for violators. While the 1996 Act called for imposition of two sanctions from a list of six, the 2010 Act provides for imposition of at least three sanctions out of a list of nine. The new sanctions include:

Prohibiting transactions in foreign exchange subject to U.S. jurisdiction in which a sanctioned person has any interest; Prohibiting transfers of credit or payments through financial institutions if such transfers or payments are subject to U.S. jurisdiction and involve an interest of a sanctioned person; and Prohibiting the sanctioned person from acquiring, holding, withholding, using, transferring, withdrawing, transporting, importing, or exporting of any property subject to U.S. jurisdiction. The 2010 Act also reduces the level of knowledge required for sanctions violations. The 1996 Act required that a...