Significant financial transactions* knowingly conducted or facilitated by a foreign financial institution (FFI) with the Central Bank of Iran (CBI) on or after November 5, 2018 or with a designated Iranian financial institution may be subject to sanctions under the National Defense Authorization Act (NDAA) and section 561.203 of the Iranian Financial Sanctions Regulations (IFSR), 31 C.F.R. Part 561, unless –
(i) the country that has primary jurisdiction over the FFI conducting or facilitating such significant financial transactions has received a significant reduction exception under section 1245(d)(4)(D) of the NDAA; and
(ii) the significant financial transaction is for bilateral trade only, and any funds owed to Iran as a result of such trade are credited to an account at the FFI in the country that has primary jurisdiction over the FFI and are not repatriated to Iran.
However, any FFI that knowingly facilitates significant transactions or provides significant financial services for persons designated in connection with Iran’s support for international terrorism or the proliferation of weapons of mass destruction pursuant to E.O.s 13224 or 13382 can be sanctioned under section 104(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (“CISADA”) and section 561.201 of the Iranian Financial Sanctions Regulations (IFSR), even if those transactions are not sanctionable under section 1245(d) of the NDAA, section 561.203 of the IFSR, sections 1244 and 1247 of the Iran Freedom and Counter-Proliferation Act of 2012, and Executive Order 13846 for countries that receive an SRE.
* These do not include sales relating to the Humanitarian Exception.