Presented by: Erich C. Ferrari, Ferrari Legal, P.C.

Transcription

1 Presented by: Erich C. Ferrari, Ferrari Legal, P.C.

2 The Iranian Transactions Regulations is a comprehensive trade ban. It effects U.S. Persons U.S. Citizensà Dual Citizenship doesn t matter U.S. Permanent Legal Residents (Greencard holders) Persons in the U.S. No importation of goods or services from Iran; also no trade transactions in Iran-origin services No exportation, directly or indirectly of U.S. origin goods, services, or technology Facilitation: Allowing for prohibited transactions between foreign persons.

3 Exemptions Statutorily outside of Presidential sanction authority General Licenses Open ended authorizations Specific Licenses Case by case authorizations TSRA Licenses Agricultural, Medicine, Medical Devices

4 Request for an Opinion Give you an opportunity to clarify certain areas OFAC has a policy of not answering hypotheticals Always a good idea to draft one

5 But Iranian Americans engage in these transactions all the time! Penalties: Investigations (OFAC vs. FBI) Civil Finesà Up to $250,000/transactions Criminal Prosecutionà Up to 20 years in Prison Serious issues. Serious Penalties. Don t follow your friend s advice Don t roll the dice.

6 Administrative Subpoena (OFAC) Answer truthfully FBI Agent (DOJ) Could also be Commerce agents, IRS CID agents, etc Ongoing Investigations across the U.S. Both beneficiaries and forwarders Looking for people bringing from and sending money to Iran for others

7 } You are permitted to transfer funds related to a non commercial family remittance pursuant to 31 C.F.R This includes funds derived from the probate of an estate. } Be careful of where the funds are held and how they are transferred No SDN banks } No Havaleh; be careful of Saraaf

8 } You are prohibited from maintaining a bank account at an Iranian bank. } There are three classifications of banks SDN Banks GOI Banks Other Banks } The prohibition is for ALL accounts at Iranian banks } An OFAC specific license is required to close the bank account and transfer the money to the United States

9 Havaleh involves brokers in both countries. There is no actual transfer of funds. Saraafi s are money exchanges who send the money to bank accounts outside of the United States and then into the United States. The general license at 31 CFR (a) is for U.S. depository institutions. Therefore, money needs to be received by a U.S. depository institution for authorization to apply.

10 Requires a specific license authorization from OFAC It doesn t matter if you inherited the property, was gifted the property, held the property prior to sanctions, etc. Hiring others to take care of the land sale for you also requires specific license authorization Powers of attorney: same thing Be careful of bad advice being given by some lawyers Be careful of facilitation

11 Unless you work for certain international organizations, you are not allowed to work in Iran without a license authorization; This includes owning a business or serving as a member of a board, but living abroad Host of issues that come along with this: What banks are used by the business? SDNs? What about facilitation? Where is the compensation earned being held? Are there any interactions with the Government of Iran or SDNs?

12 As a general rule, if you are granted a visa from the U.S. Department of State to engage in some activity, that activity is authorized. This includes E-2 Treaty Investor visas. 31 C.F.R However, there a number of considerations: Will there be any transactions with a blocked bank? How will funds be transferred between the U.S. and Iran? Will these activities be facilitating some other activity? OFAC License needed for the funds transfer! Immigration Attorneys beware! Facilitation lurks!

13 You cannot engage in transactions for Iranian Goods or Services Unless they are incidental to your travel or necessary as living expenses This includes all of the following: Buying gifts for others while in Iran Cosmetic surgeries while in Iran Engaging Iranian counsel to represent you in matters in Iran Iranian bank accounts: OFAC and FBARs

14 } Iran Sanctions target Iran as a country, but are enforced against you as U.S. persons } The benefit of the risks does not outweigh the consequences } You can have your cake and eat it too.just ask. } Specific licenses are given out frequently, don t let fear bar you from your transactions.

15 } If you have questions after the event, please contact me: Phone: Book: The Iranian Transactions Regulations Practice Guide THANK YOU!