United StatesOFAC Iranian Transactions and Sanctions Regulations: goods, technology and services provided to Iran
In force since .
A destination sanctions rule binding private bodies.
As of .
What it requires
- Do not export, reexport, sell or supply software, technology or services to Iran or the Government of Iran, or to a third-country person you know or have reason to know will supply them to Iran, unless a general or specific license authorizes it (31 C.F.R. 560.204).
- To rely on 31 C.F.R. 560.540 for software, confirm that it enables services incident to the exchange of communications over the internet and is EAR99, publicly available under 15 C.F.R. 734.3(b)(3) or classified ECCN 5D992.c, and do not provide it with knowledge or reason to know it is intended for the Government of Iran (31 C.F.R. 560.540(a), (b)(1)).
These lines are LexLint's reading of the law's text, as of .
If you get it wrong
Criminal exposureYes
Private right of actionNo
Criminal exposure note
A willful violation, attempt or conspiracy is punishable by a fine of up to $1,000,000 and, for an individual, imprisonment of up to 20 years, or both (50 U.S.C. 1705(c)).
Penalty structure
The statute sets the greater of $250,000 or twice the amount of the transaction that is the basis of the violation; the amount coded is the inflation-adjusted maximum in OFAC's enforcement guidelines. The civil penalty provision does not require willfulness, which the criminal provision does.
- Rule
- Per violation only
- As of
- Currency
- USD
- Per violation unit
- Violation
- Per violation amount
- 377,700
Who enforces it
Enforcement body
Office of Foreign Assets Control, U.S. Department of the Treasury (civil penalties); willful violations are criminal offenses under 50 U.S.C. 1705(c).
What it reaches
Obligation class
Prohibition, Licensing
Applicability criteria
- As of
- Combinator
- Any of
- Criteria
- The software, technology or service is exported, reexported, sold or supplied to Iran or the Government of Iran, or to a third-country person with knowledge or reason to know it is intended for Iran.
What this law does
The Iranian Transactions and Sanctions Regulations prohibit the exportation, reexportation, sale or supply, directly or indirectly, from the United States or by a United States person wherever located, of any goods, technology or services to Iran or the Government of Iran, including to a third-country person with knowledge or reason to know it is intended for Iran (section 560.204), which reaches software and hosted services.
Section 560.540 authorizes the export of services incident to the exchange of communications over the internet (instant messaging, chat and email, social networking, web browsing, social media platforms, collaboration platforms, video conferencing, cloud-based services in support of them) and of software that enables them, where the software is EAR99, publicly available under the EAR, or classified ECCN 5D992.c, and does not authorize provision with knowledge or reason to know that it is intended for the Government of Iran.
OFAC incorporated into that section, with amendments, General License D-2 (issued , which had superseded General License D-1), by a rule effective .
When LexLint raises it
When your app profile says your app serves a sanctioned destination.