No. Non-U.S. persons generally do not risk exposure to sanctions for engaging in activities or facilitating transactions for such activities that would be authorized for U.S. persons pursuant to GL O . Non-U.S. persons unable to wind down transactions in accordance with Iran GL O before 12:01 a.m. eastern daylight time, June 30, 2023, are encouraged to seek guidance from OFAC in advance of that date.
Iran GL Oauthorizes U.S. persons to wind down all transactions otherwise prohibited by section 5 of Executive Order 13846 involving any vessel blocked as part of the March 2, 2023 designation (“blocked vessels”), subject to certain conditions. This includes, among other activities, the unloading of any non-Iranian merchandise loaded on the blocked vessel as of March 2, 2023, provided there is no other sanctions nexus.
U.S. persons are separately prohibited, pursuant to the Iranian Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR), from engaging in most Iran-related transactions. Accordingly, for blocked vessels containing Iranian-origin merchandise or involving persons ordinarily resident in Iran, Iran GL O provides a separate, more limited authorization under the ITSR. This narrower authorization under the ITSR allows only transactions ordinarily incident and necessary to certain limited safety and environmental situations: the safe docking and anchoring of any of the blocked vessels in port; the preservation of the health and safety of the crew; or emergency repairs or environmental mitigation or protection activities. The offloading of Iranian-origin petroleum, petroleum products, or petrochemical products, regardless of the situation, is not authorized pursuant to Iran GL O and requires a specific license from OFAC.
U.S. financial institutions may also process transactions conducted by non-U.S. persons if such transactions would be authorized for U.S. persons pursuant to Iran GL O.
Iran GL O is in effect until 12:01 eastern daylight time, June 30, 2023. Persons unable to complete authorized transactions involving the blocked vessels specified in Iran GL O before its expiration are encouraged to seek guidance from OFAC in advance of that date. As with all OFAC GLs, Iran GL O only authorizes against the authorities identified in the GL and contains certain conditions. Please see Iran GL O for further details.
On September 23, 2022, OFAC issued Iran General License (GL) D-2 to further support the provision of communication tools to ordinary Iranians and assist in their efforts to resist repressive internet censorship and surveillance tools deployed by the Iranian government. GL D-2, which supersedes GL D-1, both expands and clarifies the authorizations in GL D-1 and section 560.540 of the Iranian Transactions and Sanctions Regulations, 31 CFR 560 (ITSR), with respect to the exportation and reexportation, directly or indirectly, from the United States or by a U.S. person, of certain software and services incident to the exchange of communications over the internet. See FAQ 344 for additional information on how the authorizations in GL D-2 compare to section 560.540 of the ITSR.
Since GL D-1 was issued on February 7, 2014, the types of software and services that support communication over the internet have changed. To reflect technological developments in communication-related software and services since the issuance of GL D-1 (including in cloud-based services), OFAC issued GL D-2 to expand and clarify the range of U.S. software and services available to Iranians under OFAC’s sanctions program. For example, GL D-2 explicitly authorizes certain types of software and services for exportation or reexportation to Iran that are incident to communications over the internet, including cloud-based software and services.
GL D-2 expands and clarifies the pre-existing authorizations in several ways, including by making the following changes:
Yes, persons seeking to export items to Iran or conduct other activities in support of internet freedom in Iran that are not authorized by GL D-2 or other authorizations are encouraged to submit a specific license application to OFAC.
A cloud-based service or software provider whose non-Iranian customers provide services or software to persons in Iran via the cloud may rely upon the authorization in GL D-2 to provide access to Iran, provided that such provider conducts due diligence based on information available to it in the ordinary course of business to confirm that the non-Iranian customer: (1) is not a person whose property and interests in property are blocked, except as authorized under paragraph (a)(6) of GL D-2; and (2) provides software and services that fall within one of the categories described in FAQ 1087, or otherwise involve activity authorized or exempt under the ITSR.
In instances where cloud-based services or software are used to support the exportation of services or software to Iran authorized under GL D-2, OFAC does not generally expect a cloud-based service or software provider to evaluate the ultimate end use or end user of the authorized software or services, provided the cloud-based provider conducts due diligence based on information available to it in the ordinary course of business. For example, if a cloud-based service or software provider supports non-Iranian customers providing access in Iran to news websites or Virtual Private Networks (VPNs) that fall within one of the categories described in FAQ 1087, the cloud-based service or software provider need not evaluate whether the provision of access via the cloud involving Iranian end users is related to communication. By contrast, if a U.S. cloud-based service or software provider supports non-Iranian customers providing certain enterprise management software to Iran, such as payroll management software, the cloud-based service or software provider would be expected to evaluate whether its support of the software is a prohibited export of software or services to Iran because payroll management software is not generally considered a qualifying software incident to communications.
Please note that GL D-2 does not authorize the importation into the United States of Iranian-origin software or the dealing in such software, including the hosting of Iranian-origin software on a mobile application store. Persons seeking to engage in such activity may submit applications for specific licenses to OFAC that describe the nature of the software and the Iranian developers involved.
Yes. Paragraph (a)(1) of GL D-2 authorizes the exportation to Iran of fee-based or no-cost cloud-based services incident to the exchange of communications over the Internet. In addition, paragraph (a)(2) of GL D-2 authorizes the exportation to Iran of cloud-based software that is incident to, or enables services incident to, communications over the Internet. Software exported under paragraph (a)(2) of GL D-2 either: (i) must be designated as EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774 (EAR), or classified under Export Control Classification Number (ECCN) 5D992.c; or (ii) if the software is not subject to the EAR because it is of foreign origin, must be the type of software that would be designated EAR99 or classified under ECCN 5D992.c if it were located in the United States.
For purposes of GL D-2, cloud-based services and software are determined to be incident to the exchange of communications over the Internet when they are used to support transactions authorized or exempt under the Iranian Transactions and Sanctions Regulations (ITSR), 31 CFR part 560, including the following categories of activities:
Please note that paragraph (a)(1) of GL D-2 does not authorize the exportation of cloud-based services or software to the Government of Iran, except as specified in paragraph (a)(6) of GL D-2.
URGENT NOTE: The U.S. Department of State cautions against any travel by U.S. persons to Iran. The Department of State has issued a Level Four Travel Advisory (Do Not Travel) for Iran due to the risk of kidnapping, arbitrary arrest, and detention of U.S. citizens. See additional guidance available at https://travel.state.gov/content/travel/en/traveladvisories/traveladvisories/iran-travel-advisory.html.
Transactions ordinarily incident to travel to or from Iran by U.S. persons fall within an exemption under the Iranian Transactions and Sanctions Regulations (ITSR), 31 C.F.R. part 560, and therefore generally are not prohibited. See, e.g., 31 CFR. § 560.210(d). Exempt transactions include religious pilgrimages by U.S. persons to the Imam Reza Holy Shrine and the acquisition of goods or services for personal use while traveling. Furthermore, donations of articles, such as food, clothing, and medicine, by U.S. persons to the Imam Reza Holy Shrine intended to be used to alleviate human suffering also fall within an exemption and therefore generally are not prohibited under the ITSR.
However, U.S. persons may be prohibited from engaging in certain transactions involving persons blocked under sanctions programs or authorities outside the scope of the ITSR, such as Astan Quds Razavi (AQR) and its subsidiary, the Holy Shrine Organization, which oversees the Imam Reza Holy Shrine. AQR was designated and added to OFAC’s Specially Designated Nationals and Blocked Persons List on January 13, 2021 pursuant to Executive Order (E.O.) 13876 for being owned or controlled by the Supreme Leader of Iran. The Holy Shrine Organization is also considered blocked under E.O. 13876 pursuant to OFAC’s 50 Percent Rule to the extent it is 50 percent or more owned by AQR. More information about OFAC’s 50 Percent Rule is available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/401. U.S. persons are advised to act with caution when considering transactions or activities involving AQR or the Holy Shrine Organization.
Those seeking additional guidance on transactions and activities involving the Imam Reza Holy Shrine may contact OFAC’s Sanctions Compliance and Evaluation Division by email at: OFAC_Feedback@treasury.gov or may request a specific license or interpretive guidance from OFAC’s Licensing Division online at https://licensing.ofac.treas.gov/Apply/Introduction.aspx.
For the purposes of Iran GL N-1, covered COVID-19-related goods or technology include, for example: medical gowns; medical eye shields and goggles; surgical gloves; face shields; respirators and masks such as N95, N99, and N100 masks; personal hygiene products such as soap and hand sanitizer and other water, sanitation, and hygiene supplies such as: water purification supplies and hygiene promotion materials; vaccines and vaccine ingredients or components required for the production of vaccines; equipment, supplies, and containers for transporting, storing, and administering vaccines; COVID-19 testing kits and equipment, and software and technology for processing such kits; equipment, software, and technology for diagnostic imaging tests; ventilators or components thereof; oxygen tanks and supplies to deliver oxygen; supplies, medicines, or other therapies to treat COVID-19; and field hospitals or mobile medical units, provided that all conditions and limitations of Iran GL N-1 are satisfied, including with regard to the classification of certain goods and technology set forth in paragraph (d)(1) of Iran GL N-1. Certain COVID-19-related medical devices designated as EAR99 that would otherwise require a specific license for exportation or reexportation to Iran because they are included on OFAC’s List of Medical Devices Requiring Specific Authorization — such as High Efficiency Particulate Air (HEPA) Filtration Systems and HEPA filters — would not require a specific license for exportation or reexportation to Iran, provided that all conditions and limitations of Iran GL N-1 are satisfied.
Transactions and activities related to the exportation, reexportation, sale, or supply of such goods or technology include, for example: processing and transfer of funds; payment of taxes, fees, and import duties; purchase or receipt of permits, licenses, or public utility services; making of shipping and cargo inspection arrangements; obtaining of insurance; arrangement of financing and payment; shipping and storage of the goods; receipt of payment; and entry into contracts (including executory contracts), provided that all conditions and limitations of Iran GL N-1 are satisfied. Certain transactions and activities involving the Central Bank of Iran (CBI), the National Iranian Oil Company (NIOC), or any entity in which NIOC owns, directly or indirectly, a 50 percent or greater interest, are also authorized under Iran GL N-1.
As noted in Iran GL N-1, this general license does not authorize the unblocking of any property blocked pursuant to any part of 31 CFR chapter V, including property of the Government of Iran.
Updated: June 10, 2022
Transactions and activities involving Iranian financial institutions blocked under E.O. 13902 remain authorized under General License (GL) L to the extent they are authorized, exempt, or otherwise not prohibited by the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). This authorization includes certain transactions and activities relating to the initiation and conduct of legal proceedings authorized or otherwise permitted pursuant to section 560.510 or 560.525 of the ITSR, such as transactions or activities related to the defense of individuals in legal proceedings in Iran brought by the Government of Iran, including any arrest, investigation, prosecution, or detention. Such permissible transactions and activities may include reasonable and customary payments for the provision of legal services, bail and/or bond payments, judicial costs and fees, costs for the production of documents and appearances of witnesses, and payment of experts.
In addition, for purposes of secondary sanctions, as described in FAQ 844, non-U.S. persons are not exposed to sanctions for engaging in transactions and activities involving the Iranian financial sector or an Iranian FI blocked pursuant to E.O. 13902 that would be authorized for U.S. persons under GL L.
Please note that, unless permitted by GL L and FAQ 844, payments made to Iran involving blocked Iranian persons — including the Government of Iran, including any political subdivision, agency, or instrumentality thereof — in connection with awards, orders, decisions, or settlement of claims may be subject to sanctions. OFAC will assess such transactions on a case-by-case basis.
Please also note that guidance above applies only with respect to transactions or activities involving Iranian FIs sanctioned solely pursuant to E.O. 13599 and E.O. 13902 or the Iranian financial sector. These transactions and activities should not involve persons designated on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List) in connection with Iran’s support for international terrorism or proliferation of weapons of mass destruction (WMD) unless exempt or otherwise permitted.
Pursuant to Section 12 of E.O. 13902, the prohibitions of E.O. 13902 do not apply to transactions for the conduct of the official business of the United Nations (including its specialized agencies, programmes, funds, and related organizations) by employees, grantees, or contractors thereof. In addition, transactions and activities involving an Iranian financial institution (Iranian FI) blocked under E.O. 13902 are authorized under General License (GL) L to the extent they are authorized, exempt, or otherwise not prohibited by the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). Section 560.539 of the ITSR authorizes transactions for the official business of certain international organizations, including the United Nations and its Specialized Agencies, Programmes, Funds, and Related Organizations, including the World Bank Group, the International Monetary Fund, the International Atomic Energy Agency, the International Labor Organization, and the World Health Organization.
For purposes of secondary sanctions, as described in FAQ 844, non-U.S. persons are not exposed to sanctions for engaging in transactions and activities involving the Iranian financial sector or an Iranian FI blocked pursuant to E.O. 13902 that would be authorized for U.S. persons under GL L.
In addition, Treasury will generally view the following additional transactions by non-U.S. persons involving Iranian FIs blocked solely pursuant to E.O. 13599 and E.O. 13902 or the Iranian financial sector, as non-sanctionable:
Please note that the guidance above applies only with respect to transactions or activities involving the Iranian financial sector or Iranian FIs sanctioned solely pursuant to E.O. 13599 and E.O. 13902. These transactions and activities should not involve persons designated on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List) in connection with Iran’s support for international terrorism or proliferation of weapons of mass destruction (WMD), unless exempt or otherwise permitted.