US Terminates All Remaining Sanctions Relief Under Iran Nuclear Deal

On November 5, 2018, the United States reimposed all remaining nuclear-related sanctions against Iran that it had previously lifted in connection with its implementation of the Joint Comprehensive Plan of Action (JCPOA) in January 2016. Following the United States' withdrawal from the JCPOA on May 8, 2018 (see our May 14, 2018, client alert), and pursuant to Executive Order (E.O.) 13846 issued by President Donald Trump on August 6, 2018 (see our August 28, 2018, client alert), all U.S. nuclear-related sanctions suspended under the JCPOA were scheduled to snap back after a 90-day wind-down period ending on August 6, 2018, or a 180-day wind-down period ending on November 4, 2018, depending on the specific sanctions. The Trump administration has signaled that it will fully enforce the sanctions that are now in effect. In a November 5, 2018, press release, the Treasury Department indicated that the Trump administration hopes to cut off the Iranian regime's major sources of revenue to draw it back to the negotiating table and execute a more comprehensive agreement than the JCPOA.1

Wind-Down Authorization for Iran-Related Activities of Foreign Companies Owned or Controlled by US Persons Expires

On June 27, 2018, the Treasury Department's Office of Foreign Assets Control (OFAC) revoked General License H, which had authorized non-U.S. entities owned or controlled by a U.S. person to engage in most activities with Iran not sanctionable for other non-U.S. entities. OFAC concurrently issued a general license to permit, through November 4, 2018, all activities ordinarily incident and necessary to the wind-down of transactions previously authorized under General License H. U.S.-owned or -controlled foreign entities are now prohibited from knowingly engaging in any transaction, directly or indirectly, involving Iran that would be prohibited by the Iranian Transactions and Sanctions Regulations (ITSR) if engaged in by a U.S. person or in the United States. Additionally, OFAC issued guidance indicating that U.S.-owned or -controlled foreign entities are required to apply restrictions akin to blocking on any property or interests in property of persons blocked pursuant to the ITSR.2 As was the case prior to the withdrawal from the JCPOA, any license or exception authorizing U.S. persons to engage in an activity also allows U.S.-owned or -controlled foreign entities to engage in that activity.

All Secondary Sanctions Fully Reimposed

The vast majority of U.S. sanctions lifted in January 2016 under the JCPOA were secondary sanctions, a set of measures that target non-U.S. persons engaged in certain activities involving...