US Sanctions Updates 2013
IRAN FREEDOM AND COUNTER-PROLIFERATION ACT 2012 - 2 JANUARY 2013
On 2nd January 2013, President Obama signed into law the Iran Freedom and Counter-Proliferation Act of 2012 (the “Act”). This Act expands the category of activities by non-US persons involving Iran that could result in the imposition of sanctions against such non-US persons, and provides for the blocking of the property of additional Iran sanctions targets. The sanctions set out in the Act will be applicable from 2 July 2013, 180 days after its enactment.
Section 1244 provides for the designation of, and imposition of an asset freeze with respect to, the energy, shipping, and shipbuilding sectors of Iran, including port operators in Iran, based on findings made by Congress that those sectors are providing revenue to the Government of Iran to support its nuclear proliferation activities. It also provides for the imposition of sanctions against or with respect to persons that sell, supply, or transfer significant goods and services used in connection with the energy, shipping, or shipbuilding sectors of Iran, including the National Iranian Oil Company, the National Iranian Tanker Company, and the Islamic Republic of Iran Shipping Lines. Sanctions will not be imposed in connection with transactions for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran. Nor does this Section apply with respect to the exportation from Iran of petroleum or petroleum products to a country to which the President has granted a waiver under NDAA 2012 on the basis of that country having significantly reduced its imports of Iranian crude oil.
Section 1245 provides for the imposition of sanctions with respect to a person who knowingly sells, supplies, or transfers, directly or indirectly to or from Iran:
- a precious metal;
- materials described in section 1245(d), including graphite, raw or semi-finished metals such as aluminium and steel, coal, and software for integrating industrial processes, to/for :
- the energy, shipping or shipbuilding sectors of Iran or sectors of the Iranian economy controlled directly or indirectly by the Iranian Revolutionary Guard Corps;
- any Iranian person listed on the OFAC SDN List
- use in connection with the nuclear, military, or ballistic missile programmes of Iran.
Sanctions may be imposed even if the materials are resold, retransferred or otherwise supplied to/for the persons, or programmes or to an end-user in the sectors described above, therefore where shipment or transport of these materials is contemplated, careful due diligence will be needed in relation to their end use.
Section 1246 provides for the imposition of sanctions against persons who knowingly provide underwriting services or insurance or reinsurance to or for (i) any activity with respect to Iran for which sanctions have been imposed under the various Iran sanctions laws of the United States, including this Act, the Iran Sanctions Act 1996, the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (“CISADA”), and the Iran Threat Reduction and Syrian Human Rights Act 2012; (ii) any activity in the energy, shipping or shipbuilding sectors of Iran for which sanctions are imposed under the Act; (iii) the sale, supply or transfer to or from Iran of the materials described in Section 1245 (d); (iv) any person designated for the imposition of sanctions in connection with Iran’s proliferation of WMD including WMD delivery systems; or (v) any Iranian person listed on the OFAC SDN List.
Sanctions will not be imposed in connection with the provision of underwriting services or insurance or reinsurance for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran. Sanctions will also not be imposed with respect to a person that provides underwriting services or insurance or reinsurance if such a person has exercised due diligence and established and enforced official policies, procedures and controls to ensure the person does not underwrite or enter into a contract to provide insurance or reinsurance for any activity which could lead to the imposition of sanctions under the Act.
Section 1252 provides that 180 days after the enactment of the Act and annually thereafter through 2016, the US administration shall submit to Congress reports that contain:
- a list of large or otherwise significant vessels that have entered seaports in Iran controlled by Tidewater Middle East Company and information regarding the owners and operators of such vessels; and
- a list of all airports at which aircraft owned or controlled by an Iranian carrier on which sanctions have been imposed by the United States have landed.
We are grateful to The Eren Law Firm for permission for their Economic Sanctions Update on this subject to be made available via this website, which can be viewed and downloaded from the link below, together with a copy of the relevant sections of the NDAA.
OFAC IDENTIFICATION OF ENTITIES AND VESSELS PURSUANT TO THE IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS AND EXECUTIVE ORDER 13599 - 20 FEBRUARY 2013
OFAC has updated its list of Specially Designated Nationals ("the SDN List") to include the names of 110 entities and vessels identified as the Government of Iran, Iranian financial institutions, or property or interest in property of the Government of Iran under the Iranian Transactions and Sanctions Regulations ("ITSR") and Executive Order 13599.
Executive Order 13599 blocks all property and interests in property of the Government of Iran, Iranian financial institutions including the Central Bank of Iran, and of any person determined by the Secretary of the Treasury to be owned or controlled, directly or indirectly, by them. The ITSR, which apply to U.S. persons and to transactions that have a U.S. nexus or connection, prohibit transactions with the Government of Iran, including any political sub-division, agency or instrumentality thereof, and any entity owned or controlled directly or indirectly by the foregoing.
The entities and vessels listed include 20 banks, 32 companies in various parts of the world and 58 vessels purportedly linked to the National Iranian Tanker Company ("NITC").
The full list is set out in a Federal Register notice dated 20 February 2013, a copy of which can be downloaded from the link set out below.
I.G. FAQs REGARDING ENFORCEMENT AGAINST FOREIGN PERSONS OF U.S. TRADE SANCTIONS AGAINST IRAN - MARCH 2013
The International Group has published FAQs on the range of US sanctions measures in respect of Iran and their potential effect on the shipping and insurance sectors. The FAQs summarise the relevant statutory enactments and Executive Orders applicable to foreign persons, and the practical implications of the sanctions regime. The US sanctions regime in respect of Iran is now very broad and many provisions have extra territorial effect. Persons considering carrying out business with an Iranian connection may wish to consider obtaining legal advice to avoid inadvertent violations. A copy of the FAQs can be downloaded from the link set out below.
NEW EXECUTIVE ORDER 13645 ADDITIONAL SANCTIONS - 3 JUNE 2013
The U.S. has passed a new executive order (EO 13645") implementing certain provisions of the Iran Freedom and Counter-Proliferation Act of 2012 ("IFCPA"), which are due to come into effect on 1 July 2013. EO 13645 Order also introduces new sanctions (Sections 1 and 3) targeting Foreign Financial Institutions (FFIs) knowingly conducting or facilitating (i) "significant" transactions in the rial or maintaining significant funds or accounts denominated in the Iranian rial outside Iran, and (ii) the sale, supply, or transfer to Iran of significant goods or services to be used in connection with the automotive sector of Iran.
Importantly Section 16 of EO 13645 amends Executive Order 13622 of 30 July 2012 to impose sanctions on FFIs who engage in significant transactions for the sale, transport or marketing of petroleum, petroleum products or petrochemical products from Iran. ( Previously Executive Order 13622 referred only to “purchase or acquisition” of such products.) Sanctions are also specified for “persons” materially assisting, sponsoring or providing financial, material or technological support for, or goods and services to or in support of, Iranian persons included on the US SDN list (Section 2).
The US Treasury has published an accompanying note which contains helpful guidance on the implementation of the IFCPA provisions, including on the meaning of the terms “significant”, and “energy shipping and shipbuilding sectors of Iran”, and which activities relating to insurance, reinsurance and underwriting are potentially subject to sanctions. The sanctionable goods and services supplied to the Iranian shipping and shipbuilding sectors described in the guidance, are very similar to the prohibited activities provided in EU Regulation 1263.
The International Group is working on a guidance note on the new sanctions which it is hoped will be published shortly.
Copies of EO 13645 and related US Treasury guidance can be downloaded from the links set out below.
UPDATES TO OFAC DESIGNATIONS - 4 JUNE 2013
The US Office of Foreign Assets Control ("OFAC") has added a number of additional entities to its Specially Designated Nationals ("SDN") List, including banks, and companies involved in the oil, gas and petrochemical sectors of Iran. A list of the newly designated entities can be downloaded from here.
UPDATE - REVISED I.G. FAQS PUBLISHED 4 JUNE 2013
As U.S. sanctions measures in respect of Iran continue to evolve, the I.G. has updated the FAQ's previously published in March 2013. Of particular note are:
Section 6 - clarification of the impact from 1 July 2013 of NDAA 2013, which will result in foreign persons facing the same civil and criminal penalties as are prescribed against U.S. persons under the International Emergency Powers Act ("IEEPA");
Section 10 - commentary on State Department guidance on types of policies and procedures that insurers might adopt in order to demonstrate the exercise of due diligence so as to avail of exemptions from sanctions written into various U.S. measures, including Section 102 of The Comprehensive Iran Sanctions, Accountability and Divestment Act 2010 (CISADA), Section 212 of The Iran Threat Reduction and Syria Human Rights Act of 2012 of 10 August 2012, and Section 1246 of NDAA 2013;
Section 14 - in the context of the prohibition in Executive Order 13622 on knowingly engaging in a "significant transaction for the purchase or acquisition" from Iran of petroleum, petroleum products or petrochemical products", whether bunkers of Iranian origin may be caught. As a matter of prudence Members should enquire as to the origin of bunkers to satisfy themselves that they do not contain any Iranian origin components.
Copies of the old and new FAQs can be downloaded from the links set out below.
IFCPA / NDAA 2013: EXPANSION OF U.S. SANCTIONS AGAINST IRAN AS OF 1 JULY 2013
On 2 January, 2013, President Obama signed into law the Iran Freedom and Counter-Proliferation Act of 2012 ("IFCPA"), as part of the implementation of certain provisions of the National Defence Authorization Act for 2013 (“NDAA”). IFCPA is to come into law with effect from 1 July 2013. It will expand the category of activities by non-US persons involving Iran that could result in the imposition of sanctions against such non-US persons, and it provides for the blocking of the property of additional Iran sanctions targets. The Act specifically targets Iran’s Energy, Shipping and Shipbuilding Sectors, as well as insurers such as P&I Clubs.
The key sections of the Act are summarised below:
Transactions involving Iran’s Energy, Shipping and Shipbuilding Sectors, Iranian Ports, or Iranians on the Specially Designated Nationals (“SDN”) List.
Section 1244 provides for the designation of, and imposition of an asset freeze with respect to, the energy, shipping, and shipbuilding sectors of Iran, based on findings made by Congress that those sectors are providing revenue to the Government of Iran to support its nuclear proliferation activities. This section also provides for the imposition of sanctions against or with respect to persons that sell, supply or transfer significant goods and services used in connection with the energy, shipping, or shipbuilding sectors of Iran, including the National Iranian Oil Company, the National Iranian Tanker Company, and the Islamic Republic of Iran Shipping Lines. Sanctions will not be imposed in connection with transactions for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran. Nor does this Section apply with respect to the exportation from Iran of petroleum or petroleum products to a country to which the President has granted an NDAA waiver on the basis of that country having significantly reduced its imports of Iranian crude oil. Sanctions will also be imposed on any person who provides significant goods and services to or for the benefit of any Iranian person on the SDN List. The SDN List is an illustrative list of entities and individuals published by the US Treasury Department’s Office of Foreign Assets Control (OFAC) to assist in identifying the targets of US sanctions against Iran. In a related Guidance Note, OFAC has provided guidance in determining what conduct would be considered "significant. It also confirms that regulations will be enacted to define terms such as "energy sector", "shipping sector", "shipbuilding sector".
Transactions Involving Precious Metals and Raw Materials
Section 1245 provides for the imposition of sanctions with respect to a person who knowingly sells, supplies, or transfers, directly or indirectly to or from Iran:
• a precious metal;
• materials described in Section 1245(d), including graphite, raw or semi-finished metals such as aluminium and steel, coal, and software for integrating industrial processes, to/for:
- the energy, shipping or shipbuilding sectors of Iran or sectors of the Iranian economy controlled directly or indirectly by the Iranian Revolutionary Guard Corps;
- any Iranian person listed on the OFAC SDN List;
- use in connection with the nuclear, military, or ballistic missile programmes of Iran.
Sanctions may be imposed even if the materials are resold, retransferred or otherwise supplied to/for the persons, or programmes or to an end-user in the sectors described above. Therefore where shipment or transport of these materials is contemplated, careful due diligence will be needed in relation to their end use.
Insurance, Reinsurance and Underwriting Activities
Section 1246 provides for the imposition of sanctions against persons who knowingly provide underwriting services or insurance or reinsurance to or for:
(i) any activity with respect to Iran for which sanctions have been imposed under the various Iran sanctions laws of the United States, including IFCPA, the Iran Sanctions Act 1996, the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (“CISADA”), and the Iran Threat Reduction and Syrian Human Rights Act 2012;
(ii) any activity in the energy, shipping or shipbuilding sectors of Iran for which sanctions are imposed under IFCPA;
(iii) the sale, supply or transfer to or from Iran of the materials described in Section 1245 (d);
(iv) any person designated for the imposition of sanctions in connection with Iran’s proliferation of WMD including WMD delivery systems; or
(v) any Iranian person listed on the OFAC SDN List (with few exceptions).
Sanctions will not be imposed in connection with the provision of underwriting services or insurance or reinsurance for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran.
Sanctions will also not be imposed with respect to a person that provides underwriting services or insurance or reinsurance if such a person has exercised due diligence and established and enforced official policies, procedures and controls to ensure the person does not underwrite or enter into a contract to provide insurance or reinsurance for any activity which could lead to the imposition of sanctions under IFCPA. Provisions of the Club Rules and clauses endorsed on Certificates of Entry are designed to ensure that the Club does not provide cover for any prohibited or sanctionable activity.
Penalties
Section 1246 provides for the imposition of 5 or more sanctions (from a list of 12) against foreign insurers that engage in sanctionable conduct under IFCPA.
Section 1253 provides that persons who violate or conspire to violate IFCPA could face penalties pursuant to Section 206(b) of the International Emergency Economic Powers Act ("IEEPA"). This Act provides for imposition of criminal fines of up to US$1 million and imprisonment for up to 20 years, and civil penalties, currently set at the greater of US$ 250,000 or twice the amount of the prohibited transaction. Other serious sanctions measures which can be imposed include denying foreign persons / entities access to the US banking system and processing of US Dollar payments; and blocking of other property within US jurisdiction, including US Dollar wire transfers. Insurers and Club Members held to be in breach of IFCPA are therefore exposed to significant penalties.
Vessel Reporting
Section 1252 provides that from 1 July 2013 and annually thereafter through to 2016, the US administration will submit to Congress reports that contain:
• a list of large or otherwise significant vessels that have entered seaports in Iran controlled by Tidewater Middle East Company and information regarding the owners and operators of such vessels; and
• a list of all airports at which aircraft owned or controlled by an Iranian carrier on which sanctions have been imposed by the United States have landed.
The implementation of IFCPA represents a significant expansion of sanctions in respect of activities relating to Iran for the maritime industry as a whole.
Restrictions on Club Cover
Members are reminded of restrictions on Club cover set out in the Club Rules and Certificates of Entry.
Trading to or from Iran (unless absolutely certain that the cargo, activity or engagement with any Iranian counterparty is not prohibited under any potentially applicable law or regulation) does potentially expose the Member to the risk of sanctions. It also potentially exposes the Club to the risk of sanctions to the extent that the Club is deemed, by the provision of P&I insurance, to be facilitating or supporting an embargoed trade or activity. However provisions in the Club rules, including automatic cessation of cover where insurance is prohibited or where the member engages in any activity which may expose the Club to the risk of sanctions, are designed to ensure that the Club does not knowingly or inadvertently provide insurance for any prohibited or sanctionable activity. This is supported by a sanctions screening programme initiated by the Club Managers, designed to ensure that the Club does not provide insurance, nor make payments, in breach of sanctions regulations.
P&I cover is unlikely to be available for liabilities arising out of trade or contracts involving designated parties or vessels, and will not be available where the employment of vessels contravenes sanctions laws and regulations. See in particular Rules 17ii, 24ic, 32iv and Rule 35if, 35 ii, iii and proviso (c). Equivalent provisions appear in Charterers’ Clauses 13ii, 19ic, 30iv and 32if, 32ii,iii and proviso (c). Restrictions on cover are also set out in certificate endorsements notified to Members in Circular B519 (SSM Bermuda) and L 129 (SSM London). In addition, contracts of insurance may be voided or frustrated where the liability potentially covered involves illegality, and under the Club Rules cover may be terminated on notice or automatically cease.
Members are warned that with respect to voyages to and from Iran, there will be no P&I cover for any sanctionable activity, nor where vessels are chartered out to or from targets of the EU or US sanctions against Iran, or for purposes prohibited by such sanctions. In order for Members to mitigate the risk that P&I cover will be unavailable, they are advised to carry out proper due diligence on their business partners, including charterers, disponent owners and service providers/suppliers. Members should also ascertain for themselves the full particulars of any cargo to be carried to or from Iran, its type, grade, value and end use, and details of the identity of any Iranian counterparty, including port and terminal operators, exporters, suppliers, consignees and receivers of cargo, and the nature of their business in connection with the intended use or purpose of the cargo. Members should also ascertain whether the activity of transportation to and from Iran by the Member is prohibited under sanctions laws (such as those of the EU) directly applicable to the Member, and/or whether the transportation constitutes activity that could lead to the imposition of US sanctions against the Member, either because of a direct nexus subjecting them to US jurisdiction, or by virtue of the extra-territorial reach of US legislation and regulations, such as IFCPA.
It should be noted that because the sanctions regime is in a state of constant flux and the rules and universe of sanctionable activities are numerous and complex, the Club cannot provide definitive assurances that cover will be available in any event for activities undertaken by Members involving Iran or Iranian counterparties.
Copies of relevant extracts from NDAA 2013 which comprise IFCPA, Freehill Hogan & Mahars' Client Briefing, and the OFAC Guidance Sheet on IFCPA can be downloaded from the links set out below. We are grateful to Freehill Hogan & Mahar LLP for their kind permission to publish their Client Alert article on the Club website. FHM contacts on sanctions are William Juska, Gina Venezia and William Pallas.
UPDATED OFAC FAQS ON IFCPA AND EO 13645 - 3 JULY 2013
OFAC has published an update to its FAQ issued on 3 June 2013 concerning the implementation of IFCPA and EO 13645.
The updated guidance is set out in paragraphs 315 - 317.
Paragraph 315 - From 1 July 2013, Section 1244 of IFCPA provides for the designation of all Iranian port operators. Under Section 1244 Sub-section (c) (2) (B) ports have to be actually designated to trigger sanctions under that section. Preliminary comments from US lawyers indicate that even if ports are designated, it would not impact on Members ability to use these designated ports as long as the use of such ports is routine and provided that the trade itself does not constitute sanctionable activity. Nevertheless, Members are advised to seek professional legal advice if their vessels are scheduled to call at any Iranian ports. On 3 July, OFAC issued a statement advising that Tidewater Middle East Company has been designated as a relevant port operator for the purposes of Section 1244.
Paragraph 316 - Clarifies that for the purposes of the prohibition in Section 3 of EO 13645 on the sale, supply, or transfer to Iran of significant goods or services to be used in connection with the automotive sector of Iran, export of finished vehicles to Iran for sale by a non-sanctioned Iranian dealer or distribution network would not be sanctionable. "Auto kits" or "knock-down kits" exported to Iran for assembly in Iran would be considered sanctionable if the transaction is significant. Guidance on the interpretation of "significant" is set out in paragraph 289 of the FAQ.
Paragraph 317 - Goods or services for the maintenance of finished vehicles exported to Iran would generally not be considered "significant goods or services used in connection with the automotive sector of Iran" for the purposes of EO 13645, but the export, sale, or distribution of goods (e.g., auto parts and accessories) or services that would contribute to Iran’s ability to manufacture or assemble vehicles, or manufacture original equipment and after-market parts in Iran could create exposure to sanctions. Persons exporting parts and services to Iran for the maintenance or upkeep of finished automobiles, and foreign financial institutions facilitating such exports, should exercise caution to ensure that the parts or services are not diverted for the manufacturing or assembly of vehicles in Iran or the manufacturing of original equipment or after-market parts in Iran, and are used only for maintenance and upkeep.
A copy of the updated FAQ can be downloaded from the link set out below.
OFAC CHANGES DESIGNATION DETAILS OF TIDEWATER MIDDLE EAST CO. - 19 SEPTEMBER 2013
On 19 September 2013 OFAC published a change to the designation details of the Iranian port operator Tidewater Middle East Co. Tidewater is now denoted with an additional alias name: "FARAZ ROYAL QESHM". Tidewater has operations at seven of the main ports in Iran, and it is believed that Faraz Royal Qeshm controls the Shahid Rajaee Port Complex at Bandar Abbas.
This move may further deter the shipping industry from using port facilities at Bandar Abbas.
The EU had added the name of Faraz Royal Qeshm to its designated list on 22 December 2012 by changing the designation details of Tidewater to read: “Tidewater (a.k.a. Tidewater Middle East Co; Faraz Royal Qeshm Company LLC)”.
P5+1 INITIAL AGREEMENT WITH IRAN FOR LIMITED EASING OF SANCTIONS - 23 NOVEMBER 2013
On 23 November 2013, the countries known as P5+1, (United States, United Kingdom, Germany, France, Russia and China), facilitated by the European Union, concluded a “First Step Understanding” with Iran intended to halt Iran’s uranium enrichment program for a period of six months, in return for a limited and reversible easing of sanctions. Further details of the scope of the agreement are set out in a Joint Plan of Action published by the EU on 24 November 2013 and a US State Department Fact Sheet, copies of which can be downloaded from the links set out below. It is intended that negotiations between the parties will continue with a view to reaching a broader and longer-term agreement to limit Iran’s nuclear programme. During this 6 month period, if Iran abides by its commitments, no new nuclear-related sanctions will be imposed.
It is important to understand that the agreement does not amount to a removal of all trade sanctions against Iran.
In a Fact Sheet published on 23 November 2013, the U.S. State Department has confirmed that the following sanctions will remain in place:
1. The broad US restrictions on trade with Iran;
2. All UN security council sanctions;
3. Sanctions affecting Iran’s crude oil exports - Iran will be allowed access to USD 4.2 billion of its oil sales but in the next 6 months Iran’s crude oil sales at their currently reduced levels cannot increase;
4. Sanctions on import by Iran of petroleum products including those imposed by “CISADA” and other laws;
5. Sanctions against the Central Bank of Iran and other designated Iranian banks and financial institutions;
6. Sanctions on those who provide a broad range of financial services to Iran including insurance;
7. The majority of Iran’s foreign exchange reserves will remain frozen and asset freezing measures will be maintained against individuals and companies;
8. Sanctions on dealings with the Iranian energy, shipping and shipbuilding industries, as well as on long-term investment and the provision of technical services to Iran’s energy sector;
9. Sanctions targeting Iran’s military programme, its sponsorship of terrorism and abuse of human rights.
The main concessions on the part of the P5+1 are as follows:
1. Not to impose new nuclear-related sanctions for six months;
2. To suspend certain sanctions on gold and precious metals, and on Iran’s auto and petrochemical sectors;
3. To license safety related repairs and inspections for Iran’s civil aviation sector;
4. To allow purchase of Iranian oil to remain at current reduced levels (but not to increase) and to permit the transfer to Iran of US$4.2 billion from those sales;
5. Existing exemptions for humanitarian transactions related to Iran’s purchase of food, agricultural commodities, medicine and medical devices will continue.
No specific details have so far been provided as to how or when these concessions are to be implemented. U.S. sanctions imposed by a Presidential Executive Order can be lifted by the President without the approval of Congress. However, statutes passed by Congress which have already been signed into law cannot be lifted by the President alone. The relevant EU sanctions measures are largely set out in EU Regulation 267/2012, as amended by EU Regulation 1263/2012. The EU would need to pass amending legislation to give effect to any concessions.
Until the US and EU pass legislation to amend the existing sanctions, they remain in full force. The IG is presently endeavouring to make contact with HMT and the UK Foreign Office for information as to how the trade restrictions against Iran are likely to be changed over the next months.
Copies of the EU Joint Plan of Action, the US State Department Fact Sheet, and a commentary written by Eren Lawyers Washington can be downloaded from the links set out below.
ADDITIONAL U.S. DESIGNATIONS TARGETING IRANIAN WMD PROLIFERATION AND SANCTIONS EVASION - 12 DECEMBER 2013
On 12 December 2013 the U.S. Department of the Treasury announced a raft of new designations of companies and individuals for evading U.S. sanctions against Iran and for providing support for Iran's nuclear programme.
A US Treasury spokesperson said that notwithstanding the Joint Plan of Action agreed between Iran and the P5+1 countries on 23 November, "Today’s actions should be a stark reminder to businesses, banks, and brokers everywhere that we will continue relentlessly to enforce our sanctions, even as we explore the possibility of a long-term, comprehensive resolution of our concerns with Iran’s nuclear program."
Designation has the effect of prohibiting transactions between the designees and any U.S. person, and freeze any assets they may currently have or that come under U.S. jurisdiction. In addition, any foreign financial institution or person that facilitates significant transactions or provides material support to the designated entities may have their access to the U.S. financial system severed and/or their property under U.S. jurisdiction blocked.
Significant designations include:
- Siqirya Maritime Corp, Philippines - for providing material support to NITC. Siqirya owns 3 ships – ANTHEM, JAFFNA and OLYSA, which have also been designated;
- Mid Oil Asia Pte Ltd, Singapore – for processing payments to Egypt on behalf of NITC;
- Singa Tankers, Singapore – for processing payments on behalf of NITC;
- Ferland Company Limited, Ukraine – for involvement in ship-to-ship transfers of Iranian crude oil.
Others newly-designated include front companies, officials and agents acting for designated Iranian nuclear and weapons proliferations companies. OFAC has also updated information relating to 33 designated NITC ships which have undergone changes in name/flag.
A copy of the OFAC Press Release setting out full details of the newly-designated companies and individuals can be downloaded from the link set out below.
