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Thread: News: Department of Treasury, OFAC Release Iranian Transactions Regulations

  1. #1

    News: Department of Treasury, OFAC Release Iranian Transactions Regulations



    Federal Register, Volume 77 Issue 204 (Monday, October 22, 2012)


    [Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
    [Rules and Regulations]
    [Pages 64663-64692]
    From the Federal Register Online via the Government Printing Office [www.gpo.gov]
    [FR Doc No: 2012-25770]



    [[Page 64663]]

    Vol. 77

    Monday,

    No. 204

    October 22, 2012

    Part III





    Department of the Treasury





    -----------------------------------------------------------------------





    Foreign Assets Control Office





    -----------------------------------------------------------------------





    31 CFR Part 560





    Iranian Transactions Regulations; Final Rule

    Federal Register / Vol. 77 , No. 204 / Monday, October 22, 2012 /
    Rules and Regulations

    [[Page 64664]]


    -----------------------------------------------------------------------

    DEPARTMENT OF THE TREASURY

    Office of Foreign Assets Control

    31 CFR Part 560


    Iranian Transactions Regulations

    AGENCY: Office of Foreign Assets Control, Treasury.

    ACTION: Final rule.

    -----------------------------------------------------------------------

    SUMMARY: The Department of the Treasury's Office of Foreign Assets
    Control (``OFAC'') is changing the heading of the Iranian Transactions
    Regulations to the Iranian Transactions and Sanctions Regulations (the
    ``ITSR''), amending the renamed ITSR, and reissuing them in their
    entirety, to implement Executive Order 13599 of February 5, 2012
    (``Blocking Property of the Government of Iran and Iranian Financial
    Institutions''), and subsections 1245(c) and (d)(1)(B) of the National
    Defense Authorization Act for Fiscal Year 2012 (the ``NDAA''). OFAC
    also is adding several new general licenses to the ITSR, removing a few
    general licenses, and incorporating into the ITSR a general license and
    a statement of licensing policy that, until now, have appeared only on
    OFAC's Web site on the Iran sanctions page. Finally, OFAC is updating
    certain provisions of the ITSR and making other technical and
    conforming changes. The ITSR are separate and apart from the Iranian
    Financial Sanctions Regulations, 31 CFR part 561, as amended and
    reissued in their entirety on February 27, 2012, which were promulgated
    to implement the Comprehensive Iran Sanctions, Accountability, and
    Divestment Act of 2010, as well as the provisions of section 1245 of
    the NDAA other than those set forth above.

    DATES: Effective Date: October 22, 2012.

    FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions
    Compliance & Evaluation, tel.: 202/622-2490, Assistant Director for
    Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.:
    202/622-4855, Office of Foreign Assets Control, or Chief Counsel
    (Foreign Assets Control), tel.: 202/622-2410, Office of the General
    Counsel, Department of the Treasury (not toll free numbers).

    SUPPLEMENTARY INFORMATION:

    Electronic and Facsimile Availability

    This document and additional information concerning OFAC are
    available from OFAC's Web site (www.treas.gov/ofac). Certain general
    information pertaining to OFAC's sanctions programs also is available
    via facsimile through a 24-hour fax-on-demand service, tel.: 202/622-
    0077.

    Background

    The Iranian Transactions Regulations, 31 CFR part 560 (the
    ``ITR''), implement a series of Executive orders that began with
    Executive Order 12613, which was issued on October 29, 1987, pursuant
    to authorities including the International Security and Development
    Cooperation Act of 1985 (22 U.S.C. 2349aa-9). In that Order, the
    President prohibited the importation of Iranian-origin goods and
    services. Subsequently, in Executive Order 12957, issued on March 15,
    1995 (``E.O. 12957''), under the authority of, inter alia, the
    International Emergency Economic Powers Act (50 U.S.C. 1701-1706)
    (``IEEPA'') and the National Emergencies Act (50 U.S.C. 1601 et seq.)
    (``NEA''), the President declared a national emergency with respect to
    the actions and policies of the Government of Iran, including its
    support for international terrorism, its efforts to undermine the
    Middle East peace process, and its efforts to acquire weapons of mass
    destruction and the means to deliver them. To deal with that threat,
    E.O. 12957 imposed prohibitions on certain transactions with respect to
    the development of Iranian petroleum resources. On May 6, 1995, to
    further respond to this threat, the President issued Executive Order
    12959, which imposed comprehensive trade and financial sanctions on
    Iran, but did not include blocking sanctions. Finally, on August 19,
    1997, the President issued Executive Order 13059 consolidating and
    clarifying the previous orders.
    On December 31, 2011, the President signed into law the National
    Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81) (the
    ``NDAA''). Section 1245 of the NDAA, among other things, provides for
    the imposition of sanctions on the Central Bank of Iran and other
    Iranian financial institutions. Specifically, section 1245(c) provides
    that the President shall, pursuant to IEEPA, block and prohibit all
    transactions in all property and interests in property of an Iranian
    financial institution if such property and interests in property are in
    the United States, come within the United States, or are or come within
    the possession or control of a United States person. In addition,
    section 1245(d)(1)(B) of the NDAA authorizes the President to impose
    sanctions pursuant to IEEPA with respect to the Central Bank of Iran.
    Finally, section 1245(g) of the NDAA provides that the President may
    exercise all authorities under sections 203 and 205 of IEEPA and may
    impose the penalties provided in section 206(b) and (c) of IEEPA to
    implement and enforce section 1245 of the NDAA.
    On February 5, 2012, the President, invoking the authority of,
    inter alia, IEEPA and section 1245 of the NDAA, issued Executive Order
    13599 (``Blocking Property of the Government of Iran and Iranian
    Financial Institutions'') (``E.O. 13599''). The President issued E.O.
    13599 in order to take additional steps with respect to the national
    emergency declared in E.O. 12957 with respect to Iran, particularly in
    light of the deceptive practices of the Central Bank of Iran and other
    Iranian banks to conceal transactions of sanctioned parties, the
    deficiencies in Iran's anti-money laundering regime and the weaknesses
    in its implementation, and the continuing and unacceptable risk posed
    to the international financial system by Iran's activities.
    Section 1 of E.O. 13599 generally blocks all property and interests
    in property that are in the United States, that hereafter come within
    the United States, or that are or hereafter come within the possession
    or control of any U. S. person, including any foreign branch, of (1)
    the Government of Iran, including the Central Bank of Iran, (2) any
    Iranian financial institution, including the Central Bank of Iran, and
    (3) any person determined by the Secretary of the Treasury, in
    consultation with the Secretary of State, to be owned or controlled by,
    or to have acted or purported to act for or on behalf of, directly or
    indirectly, any person whose property and interests in property are
    blocked pursuant to E.O. 13599. The property and interests in property
    of the Government of Iran, any Iranian financial institution, and any
    other person described above may not be transferred, paid, exported,
    withdrawn, or otherwise dealt in.
    In section 2 of E.O. 13599, the President determined that the
    making of donations of certain articles, such as food, clothing, and
    medicine, intended to be used to relieve human suffering, as specified
    in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)), by, to, or for
    the benefit of any person whose property and interests in property are
    blocked pursuant to section 1 of the order would seriously impair his
    ability to deal with the national emergency declared in E.O. 12957. The
    President therefore prohibited the donation of such items as provided
    by section 1 of E.O. 13599.
    Section 3 of E.O. 13599 provides that the prohibitions in section 1
    of the order include, but are not limited to, the making of any
    contribution or provision of funds, goods, or services by, to, or for
    the benefit of any person whose

    [[Page 64665]]

    property and interests in property are blocked pursuant to the order,
    and the receipt of any contribution or provision of funds, goods, or
    services from any such person.
    Section 4(b) of E.O. 13599 provides that the prohibitions in
    section 1 of the order do not apply to property and interests in
    property of the Government of Iran that were blocked pursuant to
    Executive Order 12170 of November 14, 1979 (the Executive order issued
    in response to the takeover of the U.S. Embassy in Tehran and the
    taking hostage of U.S. diplomats and other persons on November 4,
    1979), and thereafter made subject to the transfer directives set forth
    in Executive Order 12281 of January 19, 1981 (one of the Executive
    orders that implemented the Algiers Accords of the same date), and
    implementing regulations thereunder (i.e., the Iranian Assets Control
    Regulations, 31 CFR part 535).
    Section 5 of E.O. 13599 prohibits any transaction that evades or
    avoids, has the purpose of evading or avoiding, causes a violation of,
    or attempts to violate any of the prohibitions set forth in the order,
    as well as any conspiracy formed to violate such prohibitions.
    Section 6 of E.O. 13599 provides that nothing in section 1 shall
    prohibit transactions for the conduct of the official business of the
    Federal Government by employees, grantees, or contractors thereof.
    Section 9 of E.O. 13599 authorizes the Secretary of the Treasury,
    in consultation with the Secretary of State, to take such actions,
    including the promulgation of rules and regulations, and to employ all
    powers granted to the President by IEEPA as may be necessary to carry
    out the purposes of E.O. 13599, other than the purposes described in
    section 11 (which are delegated to the Secretary of State). The
    Secretary of the Treasury may redelegate any of these functions and
    authorities to other officers and agencies of the United States
    Government consistent with applicable law.
    Acting under authority delegated by the Secretary of the Treasury
    pursuant to section 9 of E.O. 13599, OFAC is changing the heading of
    the Iranian Transactions Regulations, 31 CFR part 560 (the ``ITR''), to
    the Iranian Transactions and Sanctions Regulations, 31 CFR part 560
    (the ``ITSR''), and amending the renamed ITSR to implement E.O. 13599
    (other than section 11) and sections 1245(c) and (d)(1)(B) of the NDAA.
    To implement the blocking prohibitions of E.O. 13599 and the NDAA, OFAC
    is adding numerous new sections to the ITSR, including prohibitions,
    definitions, interpretations, and licensing provisions. OFAC also is
    revising many existing sections of the ITSR in order to take account of
    the new government-wide blocking as well as the blocking of all Iranian
    financial institutions. Due to the extensive nature of these
    amendments, OFAC is reissuing the ITSR in their entirety.
    In addition to the changes needed to implement a blocking program,
    OFAC is adding to the ITSR several new general licenses, incorporating
    into the ITSR a general license and a statement of licensing policy
    that, until now, have appeared only on OFAC's Web site on the Iran
    sanctions page, and removing several general licenses and statements of
    licensing policy that previously were part of the Iranian Transactions
    Regulations. Finally, OFAC is updating certain provisions of the ITSR
    and making other technical and conforming changes.
    Accordingly, new section 560.211 is being added to subpart B of the
    ITSR to implement the blocking prohibitions in section 1 of E.O. 13599.
    New sections 560.212 through 560.214 are being added to subpart B to
    set forth certain consequences and requirements that stem from the
    blocking prohibitions, including, inter alia, the requirement to hold
    blocked funds in interest-bearing accounts. New paragraphs (e) and (f)
    are being added to section 560.210 to incorporate two exemptions from
    the blocking prohibitions that are set forth, respectively, in sections
    6 and 4(b) of E.O. 13599. What had been paragraph (e) of section
    560.210 of the ITR has been removed as out-of-date.
    In subpart C, which defines key terms used throughout the ITSR, new
    sections 560.322 through 560.327 are being added to define key terms
    used in the new blocking prohibitions or elsewhere in the regulations.
    Also, certain existing definitions in subpart C are being revised to
    take account of new provisions, to provide greater clarity with respect
    to the terms being used, and to update certain definitions.
    For the same reasons, in subpart D, which contains interpretive
    sections regarding the ITSR, new sections 560.421 through 560.428 are
    being added and changes are being made to certain existing sections.
    Among these changes, an important change is being made to section
    560.405, which provides that transactions ordinarily incident to a
    licensed transaction and necessary to give effect to it are also
    authorized, with certain exceptions. A new exception for payments or
    transfers of funds is being added in paragraph (b) of section 560.405.
    Thus, payments or transfers of funds no longer are considered
    ordinarily incident to a licensed transaction and instead must be
    authorized by a general or specific license. A new note to paragraph
    (b) of section 560.405 refers to section 560.516 for a general license
    authorizing United States depository institutions or United States
    registered brokers or dealers in securities to process transfers of
    funds if the transfer arises from, and is ordinarily incident and
    necessary to give effect to, an underlying transaction authorized by a
    specific or general license issued pursuant to, or set forth in, this
    part. (A final change to section 560.405 that deals with sales of
    agricultural commodities, medicine, and medical devices is discussed
    below.)
    Subpart E of the ITSR contains (1) general licenses that authorize
    transactions otherwise prohibited under the ITSR but found to be
    consistent with U.S. policy, and (2) statements of licensing policy
    that describe transactions that may be authorized by specific license
    issued pursuant to the procedures described in subpart E of 31 CFR part
    501. Subpart E of the ITSR is being extensively revised, and certain
    sections also are being renumbered. New general licenses are being
    added in sections 560.519, 560.543, 560.544, 560.546 through 560.548,
    and 560.551 through 560.554. New sections 560.545 and 560.550
    incorporate into the ITSR, respectively, a statement of licensing
    policy and a general license that, until now, have been posted only on
    OFAC's Web site; new section 560.550 also reflects significant changes
    to the general license. Section 560.549 contains a statement of
    licensing policy for Iranian news organizations' offices in the United
    States that previously was found in section 560.519, which is now a
    general license authorizing specified journalistic activities and the
    establishment of news bureaus in Iran, subject to certain limitations.
    Moreover, revisions are being made to several pre-existing
    authorizations, including those in sections 560.505, 560.508, 560.516,
    560.517 and 560.530. Furthermore, certain general licenses and
    statements of licensing policy that previously appeared in the ITR are
    being removed and hence not added to the ITSR, either because they are
    out-of-date (e.g., ITR sections 560.513, 560.515, 560.520, 560.536,
    560.537) or because they are no longer consistent with U.S. policy
    (e.g., ITR sections 560.511 and 560.526).
    In addition, OFAC is revising the sections of the ITSR dealing with
    authorized sales of agricultural commodities, medicine, and medical
    devices to Iran pursuant to the Trade Sanctions Reform and Export

    [[Page 64666]]

    Enhancement Act of 2000, as amended (22 U.S.C. 7201 et seq.)
    (``TSRA''). First, OFAC is amending section 560.530 to add a general
    license, in new paragraph (a)(3), authorizing the exportation or
    reexportation of medicine and basic medical supplies to Iran. The term
    medicine already is defined in paragraph (e)(2) of section 560.530. The
    term basic medical supplies is newly defined in paragraph (a)(3)(ii) to
    mean those medical devices, as defined in paragraph (e)(3) of section
    560.530, that are included on the List of Basic Medical Supplies on the
    Office of Foreign Assets Control's Web site (www.treasury.gov/ofac) on
    the Iran Sanctions page, but not including replacement parts. The List
    of Basic Medical Supplies generally will contain medical devices
    (excluding replacement parts) for which OFAC previously did not require
    an Official Commodity Classification of EAR99 issued by the Department
    of Commerce's Bureau of Industry and Security to be submitted with a
    specific license application and which are now generally licensed.
    Certain classes of medicine are excluded from the scope of this general
    license by new paragraph (a)(3)(iii) of section 560.530. Exports of
    medicine and basic medical supplies to military or law enforcement
    purchasers or importers are excluded from the scope of this general
    license by new paragraph (a)(3)(iv) of section 560.530.
    Second, OFAC is amending sections 560.530 and 560.532, as well as
    interpretive section 560.405 in subpart D of the ITSR, to clarify the
    rules for financing of TSRA sales. New paragraph (a)(3)(i) of section
    560.530 provides that payment terms and financing for sales pursuant to
    the new general license for medicine and basic medical supplies must be
    limited to, and consistent with, those authorized by section 560.532.
    Paragraph (a)(2)(i) of section 560.530 is being amended to add the same
    requirement to the existing general license for exports of food.
    OFAC is revising section 560.532 to provide that the general
    license for payment terms in that section applies to all sales pursuant
    to section 560.530(a), whether authorized by general or specific
    license. OFAC also is revising paragraph (e) of section 560.405 to
    clarify that financing of all TSRA sales authorized pursuant to section
    560.530(a) is excepted from the authorization in section 560.405 for
    transactions ordinarily incident to a licensed transaction. Sections
    560.530 and 560.532, which authorize the conduct of related
    transactions, including payment terms and financing, for the TSRA sales
    described above, govern instead.
    Third, a new authorized payment term for all TSRA sales is being
    added in section 560.532. New paragraph (a)(4) of section 560.532
    specifies that the new payment term is a letter of credit issued by an
    Iranian financial institution whose property and interests in property
    are blocked solely pursuant to 31 CFR part 560. Such a letter of credit
    must be initially advised, confirmed or otherwise dealt in by a third-
    country financial institution that is not a United States person, an
    Iranian financial institution, or the Government of Iran before it is
    advised, confirmed or dealt in by a U.S. financial institution.
    Fourth, OFAC is amending the rules for TSRA sales by revising
    section 560.530(f), to clarify that the term medicine does not include
    cosmetics, and making other technical and conforming changes to
    sections 560.530, 560.532, and 560.533.
    Finally, OFAC is removing both Appendix A to Part 560, which listed
    persons determined to be the Government of Iran (as defined in section
    560.304) and Appendix C to Part 560. The persons that were listed in
    Appendix A to Part 560 are listed on OFAC's List of Specially
    Designated Nationals and Blocked Persons, and their property and
    interests in property are blocked pursuant to E.O. 13599 and section
    560.211 of the ITSR; maintaining a separate Appendix A to Part 560,
    therefore, no longer serves any useful purpose. Appendix C to Part 560
    set forth eligible procurement bodies of the Government of Iran for
    purposes of a statement of licensing policy that was removed from the
    ITSR when TSRA was first implemented. It too no longer serves any
    purpose.
    This final rule, in addition to renaming, amending, and reissuing
    the ITR as the ITSR, also makes a conforming amendment to Appendix A to
    31 CFR chapter V.

    Public Participation

    Because the ITSR involve a foreign affairs function, the provisions
    of Executive Order 12866 and the Administrative Procedure Act (5 U.S.C.
    553) requiring notice of proposed rulemaking, opportunity for public
    participation, and delay in effective date are inapplicable. Because no
    notice of proposed rulemaking is required for this rule, the Regulatory
    Flexibility Act (5 U.S.C. 601-612) does not apply.

    Paperwork Reduction Act

    The collections of information related to the ITSR are contained in
    31 CFR part 501 (the ``Reporting, Procedures and Penalties
    Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
    U.S.C. 3507), those collections of information have been approved by
    the Office of Management and Budget under control number 1505-0164. An
    agency may not conduct or sponsor, and a person is not required to
    respond to, a collection of information unless the collection of
    information displays a valid control number.

    List of Subjects in 31 CFR Part 560

    Administrative practice and procedure, Banks, Banking, Brokers,
    Foreign Trade, Investments, Loans, Securities, Iran.

    For the reasons set forth in the preamble, the Department of the
    Treasury's Office of Foreign Assets Control amends 31 CFR chapter V as
    follows:

    0
    1. Revise 31 CFR part 560 to read as follows:

    PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

    Subpart A--Relation of This Part to Other Laws and Regulations
    Sec.
    560.101 Relation of this part to other laws and regulations.
    Subpart B--Prohibitions
    560.201 Prohibited importation of goods or services from Iran.
    560.202 [Reserved]
    560.203 Evasions; attempts; causing violations; conspiracies.
    560.204 Prohibited exportation, reexportation, sale or supply of
    goods, technology, or services to Iran.
    560.205 Prohibited reexportation of goods, technology or services to
    Iran or the Government of Iran by persons other than United States
    persons; exceptions.
    560.206 Prohibited trade-related transactions with Iran; goods,
    technology, or services.
    560.207 Prohibited investment.
    560.208 Prohibited facilitation by United States persons of
    transactions by foreign persons.
    560.209 Prohibited transactions with respect to the development of
    Iranian petroleum resources.
    560.210 Exempt transactions.
    560.211 Prohibited transactions involving blocked property.
    560.212 Effect of transfers violating the provisions of this part.
    560.213 Holding of funds in interest-bearing accounts; investment
    and reinvestment.
    560.214 Expenses of maintaining blocked physical property;
    liquidation of blocked property.
    Subpart C--General Definitions
    560.301 Effective date.
    560.302 [Reserved]
    560.303 Iran; Iranian.

    [[Page 64667]]

    560.304 Government of Iran.
    560.305 Person; entity.
    560.306 Iranian-origin goods or services; goods or services owned or
    controlled by the Government of Iran.
    560.307 United States.
    560.308 Importation of goods.
    560.309 [Reserved]
    560.310 License.
    560.311 General license.
    560.312 Specific license.
    560.313 Entity owned or controlled by the Government of Iran.
    560.314 United States person; U.S. person.
    560.315 Information or informational materials.
    560.316 New investment.
    560.317 Credits or loans.
    560.318 [Reserved]
    560.319 United States depository institution.
    560.320 Iranian accounts.
    560.321 United States registered broker or dealer in securities.
    560.322 Blocked account; blocked property.
    560.323 Interest.
    560.324 Iranian financial institution.
    560.325 Property; property interest.
    560.326 Transfer.
    560.327 U.S. financial institution.
    Subpart D--Interpretations
    560.401 Reference to amended sections.
    560.402 Effect of amendment.
    560.403 Transshipment or transit through Iran.
    560.404 [Reserved]
    560.405 Transactions ordinarily incident to a licensed transaction
    authorized.
    560.406 Transshipment or transit through the United States.
    560.407 Transactions related to Iranian-origin goods.
    560.408 Importation into and release from a bonded warehouse or
    foreign trade zone.
    560.409 [Reserved]
    560.410 Provision of services.
    560.411 [Reserved]
    560.412 Extensions of credit or loans to Iran.
    560.413 [Reserved]
    560.414 Reexportation of certain U.S.-origin goods exported prior to
    May 7, 1995.
    560.415 [Reserved]
    560.416 Brokering services.
    560.417 Facilitation; change of policies and procedures; referral of
    business opportunities offshore.
    560.418 Release of technology or software in the United States or a
    third country.
    560.419 U.S. employment of persons ordinarily resident in Iran.
    560.420 Reexportation by non-U.S. persons of certain foreign-made
    products containing U.S.-origin goods or technology.
    560.421 Setoffs prohibited.
    560.422 Termination and acquisition of an interest in blocked
    property.
    560.423 Offshore transactions involving blocked property.
    560.424 Payments from blocked accounts to satisfy obligations
    prohibited.
    560.425 Entities owned by a person whose property and interests in
    property are blocked.
    560.426 Charitable contributions.
    560.427 Exportation, reexportation, sale or supply of financial
    services to Iran or the Government of Iran.
    560.428 Credit extended and cards issued by U.S. financial
    institutions.
    Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
    560.501 General and specific licensing procedures.
    560.502 Effect of license or authorization.
    560.503 Exclusion from licenses and authorizations.
    560.504 [Reserved]
    560.505 Activities and services related to certain nonimmigrant and
    immigrant categories authorized.
    560.506 Importation and exportation of certain gifts authorized.
    560.507 [Reserved]
    560.508 Telecommunications and mail transactions authorized.
    560.509 Certain transactions related to patents, trademarks, and
    copyrights authorized.
    560.510 Transactions related to the resolution of disputes between
    the United States or United States nationals and the Government of
    Iran.
    560.511 [Reserved]
    560.512 Iranian Government missions in the United States.
    560.513-560.515 [Reserved]
    560.516 Transfers of funds involving Iran.
    560.517 Exportation of services: Iranian accounts at United States
    depository institutions or United States registered brokers or
    dealers in securities.
    560.518 Transactions in Iranian-origin and Iranian Government
    property.
    560.519 Journalistic activities and establishment of news bureaus in
    Iran.
    560.520 [Reserved]
    560.521 Diplomatic pouches.
    560.522 Allowable payments for overflights of Iranian airspace.
    560.523 Exportation of equipment and services relating to
    information and informational materials.
    560.524 Household goods and personal effects.
    560.525 Provision of certain legal services.
    560.526 [Reserved]
    560.527 Rescheduling existing loans.
    560.528 Aircraft safety.
    560.529 Bunkering and emergency repairs.
    560.530 Commercial sales, exportation, and reexportation of
    agricultural commodities, medicine, and medical devices.
    560.531 [Reserved]
    560.532 Payment for and financing of exports and reexports of
    agricultural commodities, medicine, and medical devices.
    560.533 Brokering sales of agricultural commodities, medicine, and
    medical devices.
    560.534-560.537 [Reserved]
    560.538 Authorized transactions necessary and ordinarily incident to
    publishing.
    560.539 Official activities of certain international organizations.
    560.540 Exportation of certain services and software incident to
    Internet-based communications.
    560.541 Third-country diplomatic and consular funds transfers.
    560.542 Importation or exportation of human remains for burial,
    cremation, or interment authorized.
    560.543 Sale of certain real property in Iran and transfer of
    related funds to the United States.
    560.544 Certain educational activities by U.S. persons in third
    countries authorized.
    560.545 Democracy and human rights in Iran and academic and cultural
    exchange programs.
    560.546 Payments and transfers to blocked accounts in U.S. financial
    institutions.
    560.547 Entries in certain accounts for normal service charges
    authorized.
    560.548 Investment and reinvestment of certain funds.
    560.549 Policy governing Iranian news organizations' offices in the
    United States.
    560.550 Certain noncommercial, personal remittances to or from Iran
    authorized.
    560.551 Student loan payments from persons in Iran authorized.
    560.552 Transactions related to U.S. citizens residing in Iran.
    560.553 Payments from funds originating outside the United States
    authorized.
    560.554 Importation and exportation of services related to
    conferences in the United States or third countries authorized.
    Subpart F--Reports
    560.601 Records and reports.
    560.602-560.603 [Reserved]
    Subpart G--Penalties
    560.701 Penalties.
    560.702 Detention of shipments.
    560.703 Pre-Penalty Notice; settlement.
    560.704 Penalty imposition.
    560.705 Administrative collection; referral to United States
    Department of Justice.
    Subpart H--Procedures
    560.801 Procedures.
    560.802 Delegation by the Secretary of the Treasury.
    560.803 [Reserved]
    Subpart I--Paperwork Reduction Act
    560.901 Paperwork Reduction Act notice.
    Appendix A to Part 560 [Reserved]
    Appendix B to Part 560--Bulk Agricultural Commodities
    Appendix C to Part 560 [Reserved]

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
    2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
    1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461
    note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L.
    111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125
    Stat. 1298; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O.
    12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR
    24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR,
    1997 Comp., p. 217; E.O. 13599, 77 FR

    [[Page 64668]]

    6659, February 8, 2012; E.O. 13628, 77 FR 62139, October 12, 2012.

    Subpart A--Relation of This Part to Other Laws and Regulations


    Sec. 560.101 Relation of this part to other laws and regulations.

    This part is separate from, and independent of, the other parts of
    this chapter, including part 535 of this chapter, ``Iranian Assets
    Control Regulations,'' part 561 of this chapter, ``Iranian Financial
    Sanctions Regulations,'' and part 562 of this chapter, ``Iranian Human
    Rights Abuses Sanctions Regulations,'' with the exception of part 501
    of this chapter, the recordkeeping and reporting requirements and
    license application and other procedures of which apply to this part.
    Actions taken pursuant to part 501 of this chapter with respect to the
    prohibitions contained in this part are considered actions taken
    pursuant to this part. Differing foreign policy and national security
    circumstances may result in differing interpretations of similar
    language among the parts of this chapter. No license or authorization
    contained in or issued pursuant to those other parts authorizes any
    transaction prohibited by this part. No license or authorization
    contained in or issued pursuant to any other provision of law or
    regulation authorizes any transaction prohibited by this part. No
    license or authorization contained in or issued pursuant to this part
    relieves the involved parties from complying with any other applicable
    laws or regulations.

    Subpart B--Prohibitions


    Sec. 560.201 Prohibited importation of goods or services from Iran.

    Except as otherwise authorized pursuant to this part, and
    notwithstanding any contract entered into or any license or permit
    granted prior to May 7, 1995, the importation into the United States of
    any goods or services of Iranian origin or owned or controlled by the
    Government of Iran, other than information and informational materials
    within the meaning of section 203(b)(3) of the International Emergency
    Economic Powers Act (50 U.S.C. 1702(b)(3)), is prohibited.


    Sec. 560.202 [Reserved]


    Sec. 560.203 Evasions; attempts; causing violations; conspiracies.

    (a) Any transaction on or after the effective date that evades or
    avoids, has the purpose of evading or avoiding, causes a violation of,
    or attempts to violate any of the prohibitions set forth in this part
    is prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set
    forth in this part is prohibited.


    Sec. 560.204 Prohibited exportation, reexportation, sale, or supply
    of goods, technology, or services to Iran.

    Except as otherwise authorized pursuant to this part, and
    notwithstanding any contract entered into or any license or permit
    granted prior to May 7, 1995, 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 is prohibited, including the
    exportation, reexportation, sale, or supply of any goods, technology,
    or services to a person in a third country undertaken with knowledge or
    reason to know that:
    (a) Such goods, technology, or services are intended specifically
    for supply, transshipment, or reexportation, directly or indirectly, to
    Iran or the Government of Iran; or
    (b) Such goods, technology, or services are intended specifically
    for use in the production of, for commingling with, or for
    incorporation into goods, technology, or services to be directly or
    indirectly supplied, transshipped, or reexported exclusively or
    predominantly to Iran or the Government of Iran.


    Sec. 560.205 Prohibited reexportation of goods, technology, or
    services to Iran or the Government of Iran by persons other than United
    States persons; exceptions.

    (a) Except as otherwise authorized pursuant to this part, and
    notwithstanding any contract entered into or any license or permit
    granted prior to May 7, 1995, the reexportation from a third country,
    directly or indirectly, by a person other than a United States person,
    of any goods, technology, or services that have been exported from the
    United States is prohibited, if:
    (1) Undertaken with knowledge or reason to know that the
    reexportation is intended specifically for Iran or the Government of
    Iran; and
    (2) The exportation of such goods, technology, or services from the
    United States to Iran was subject to export license application
    requirements under any United States regulations in effect on May 6,
    1995, or thereafter is made subject to such requirements imposed
    independently of this part (see Sec. 560.414).
    (b) The prohibitions of paragraph (a) of this section shall not
    apply to those goods or that technology subject to export license
    application requirements if such goods or technology have been:
    (1) Substantially transformed into a foreign-made product outside
    the United States; or
    (2) Incorporated into a foreign-made product outside the United
    States if the aggregate value of such goods and technology described in
    paragraph (a)(2) of this section constitutes less than 10 percent of
    the total value of the foreign-made product to be exported from a third
    country (see Sec. 560.420).

    Note to Sec. 560.205(b): The reexportation of U.S.-origin
    goods or technology, including U.S.-origin goods or technology that
    have been incorporated or substantially transformed into a foreign-
    made product, not prohibited by this section, may require
    authorization by the U.S. Department of Commerce under the Export
    Administration Regulations (15 CFR parts 730-774) or by the U.S.
    State Department under the International Traffic in Arms Regulations
    (22 CFR 123.9).

    (c) Reexportation by United States persons or from the United
    States is governed by other sections in this part, including Sec. Sec.
    560.204 and 560.206.


    Sec. 560.206 Prohibited trade-related transactions with Iran; goods,
    technology, or services.

    (a) Except as otherwise authorized pursuant to this part, and
    notwithstanding any contract entered into or any license or permit
    granted prior to May 7, 1995, no United States person, wherever
    located, may engage in any transaction or dealing in or related to:
    (1) Goods or services of Iranian origin or owned or controlled by
    the Government of Iran; or
    (2) Goods, technology, or services for exportation, reexportation,
    sale or supply, directly or indirectly, to Iran or the Government of
    Iran.
    (b) For purposes of paragraph (a) of this section, the term
    transaction or dealing includes but is not limited to purchasing,
    selling, transporting, swapping, brokering, approving, financing,
    facilitating, or guaranteeing.


    Sec. 560.207 Prohibited investment.

    Except as otherwise authorized pursuant to this part, and
    notwithstanding any contract entered into or any license or permit
    granted prior to May 7, 1995, any new investment by a United States
    person in Iran or in property (including entities) owned or controlled
    by the Government of Iran is prohibited.


    Sec. 560.208 Prohibited facilitation by United States persons of
    transactions by foreign persons.

    Except as otherwise authorized pursuant to this part, and

    [[Page 64669]]

    notwithstanding any contract entered into or any license or permit
    granted prior to May 7, 1995, no United States person, wherever
    located, may approve, finance, facilitate, or guarantee any transaction
    by a foreign person where the transaction by that foreign person would
    be prohibited by this part if performed by a United States person or
    within the United States.


    Sec. 560.209 Prohibited transactions with respect to the development
    of Iranian petroleum resources.

    Except as otherwise authorized, and notwithstanding any contract
    entered into or any license or permit granted prior to March 16, 1995,
    the following are prohibited:
    (a) The entry into or performance by a United States person, or the
    approval by a United States person of the entry into or performance by
    an entity owned or controlled by a United States person, of:
    (1) A contract that includes overall supervision and management
    responsibility for the development of petroleum resources located in
    Iran, or
    (2) A guaranty of another person's performance under such contract;
    or
    (b) The entry into or performance by a United States person, or the
    approval by a United States person of the entry into or performance by
    an entity owned or controlled by a United States person, of:
    (1) A contract for the financing of the development of petroleum
    resources located in Iran, or
    (2) A guaranty of another person's performance under such a
    contract.


    Sec. 560.210 Exempt transactions.

    (a) Personal communications. The prohibitions contained in this
    part do not apply to any postal, telegraphic, telephonic, or other
    personal communication that does not involve the transfer of anything
    of value.
    (b) Humanitarian donations. The prohibitions of Sec. Sec. 560.204
    and 560.206 do not apply to donations by United States persons of
    articles, such as food, clothing, and medicine, intended to be used to
    relieve human suffering.
    (c) Information or informational materials. (1) The prohibitions
    contained in this part do not apply to the importation from any country
    and the exportation to any country of information or informational
    materials, as defined in Sec. 560.315, whether commercial or
    otherwise, regardless of format or medium of transmission.
    (2) This section does not exempt from regulation or authorize
    transactions related to information or informational materials not
    fully created and in existence at the date of the transactions, or to
    the substantive or artistic alteration or enhancement of informational
    materials, or to the provision of marketing and business consulting
    services. Such prohibited transactions include, but are not limited to,
    payment of advances for information or informational materials not yet
    created and completed (with the exception of prepaid subscriptions for
    widely circulated magazines and other periodical publications);
    provision of services to market, produce or co-produce, create, or
    assist in the creation of information or informational materials; and
    payment of royalties with respect to income received for enhancements
    or alterations made by U.S. persons to such information or
    informational materials.
    (3) This section does not exempt or authorize transactions incident
    to the exportation of software subject to the Export Administration
    Regulations, 15 CFR parts 730 through 774, or to the exportation of
    goods (including software) or technology for use in the transmission of
    any data, or to the provision, sale, or leasing of capacity on
    telecommunications transmission facilities (such as satellite or
    terrestrial network connectivity) for use in the transmission of any
    data. The exportation of such items or services and the provision,
    sale, or leasing of such capacity or facilities to Iran, the Government
    of Iran, an Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to Sec.
    560.211 are prohibited.

    Note to paragraph (c)(3) of Sec. 560.210: See Sec. 560.540 of
    this part for a general license authorizing the exportation to
    persons in Iran of certain services and software incident to the
    exchange of personal communications over the Internet.

    (d) Travel. The prohibitions contained in this part do not apply to
    transactions ordinarily incident to travel to or from any country,
    including importation or exportation of accompanied baggage for
    personal use, maintenance within any country including payment of
    living expenses and acquisition of goods or services for personal use,
    and arrangement or facilitation of such travel including nonscheduled
    air, sea, or land voyages.
    (e) Official Business. The prohibitions in Sec. 560.211 do not
    apply to transactions for the conduct of the official business of the
    Federal Government by employees, grantees, or contractors thereof.
    (f) The prohibitions in Sec. 560.211 do not apply to property and
    interests in property of the Government of Iran that were blocked
    pursuant to Executive Order 12170 of November 14, 1979, and thereafter
    made subject to the transfer directives set forth in Executive Order
    12281 of January 19, 1981, and implementing regulations thereunder.


    Sec. 560.211 Prohibited transactions involving blocked property.

    (a) All property and interests in property of the Government of
    Iran, including the Central Bank of Iran, that are in the United
    States, that hereafter come within the United States, or that are or
    hereafter come within the possession or control of any United States
    person, including any foreign branch, are blocked and may not be
    transferred, paid, exported, withdrawn, or otherwise dealt in.
    (b) All property and interests in property of any Iranian financial
    institution, including the Central Bank of Iran, that are in the United
    States, that hereafter come within the United States, or that are or
    hereafter come within the possession or control of any United States
    person, including any foreign branch, are blocked and may not be
    transferred, paid, exported, withdrawn, or otherwise dealt in.
    (c) All property and interests in property that are in the United
    States, that hereafter come within the United States, or that are or
    hereafter come within the possession or control of any United States
    person, including any foreign branch, of the following persons are
    blocked and may not be transferred, paid, exported, withdrawn, or
    otherwise dealt in: any person determined by the Secretary of the
    Treasury, in consultation with the Secretary of State, to be owned or
    controlled by, or to have acted or purported to act for or on behalf
    of, directly or indirectly, any person whose property and interests in
    property are blocked pursuant to paragraphs (a) through (c) of this
    section.

    Note 1 to paragraphs (a) through (c) of Sec. 560.211: The names
    of persons identified as already blocked or designated for blocking
    pursuant to Executive Order 13599 of February 5, 2012, whose
    property and interests in property therefore are blocked pursuant to
    this section, are published in the Federal Register and incorporated
    into the Office of Foreign Assets Control's Specially Designated
    Nationals and Blocked Persons List (``SDN List'') with the
    identifier ``[IRAN].'' The SDN List is accessible through the
    following page on the Office of Foreign Control's Web site:
    www.treasury.gov/sdn. Additional information pertaining to the SDN
    List can be found in Appendix A to this chapter. See Sec. 560.425
    concerning entities that may not be listed on the SDN List but whose
    property and interests in property are

    [[Page 64670]]

    nevertheless blocked pursuant to this section. Executive Order 13599
    blocks the property and interests in property of the Government of
    Iran and Iranian financial institutions, as defined in Sec. 560.304
    and Sec. 560.324, respectively. The property and interests in
    property of persons falling within the definition of the terms
    Government of Iran and Iranian financial institution are blocked
    pursuant to this section regardless of whether the names of such
    persons are published in the Federal Register or incorporated into
    the SDN List.


    Note 2 to paragraph (a) through (c) of Sec. 560.211: The
    International Emergency Economic Powers Act (50 U.S.C. 1701-1706)
    (``IEEPA''), in section 203 (50 U.S.C. 1702), authorizes the
    blocking of property and interests in property of a person during
    the pendency of an investigation. The names of persons whose
    property and interests in property are blocked pending investigation
    pursuant to this section also are published in the Federal Register
    and incorporated into the SDN List with the identifier ``[BPI-
    IRAN].''


    Note 3 to paragraph (a) through (c) of Sec. 560.211: Sections
    501.806 and 501.807 of this chapter describe the procedures to be
    followed by persons seeking, respectively, the unblocking of funds
    that they believe were blocked due to mistaken identity, or
    administrative reconsideration of their status as the Government of
    Iran, an Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to this
    section.

    (d) The prohibitions in paragraphs (a) through (c) of this section
    include, but are not limited to, prohibitions on the following
    transactions:
    (1) The making of any contribution or provision of funds, goods, or
    services by, to, or for the benefit of any person whose property and
    interests in property are blocked pursuant to paragraphs (a) through
    (c) of this section; and
    (2) The receipt of any contribution or provision of funds, goods,
    or services from any person whose property and interests in property
    are blocked pursuant to paragraphs (a) through (c) of this section.
    (e) Unless authorized by this part or by a specific license
    expressly referring to this section, any dealing in any security (or
    evidence thereof) held within the possession or control of a U.S.
    person and either registered or inscribed in the name of, or known to
    be held for the benefit of, or issued by, the Government of Iran, an
    Iranian financial institution, or any other person whose property and
    interests in property are blocked pursuant to this section is
    prohibited. This prohibition includes but is not limited to the
    transfer (including the transfer on the books of any issuer or agent
    thereof), disposition, transportation, importation, exportation, or
    withdrawal of, or the endorsement or guaranty of signatures on, any
    such security on or after the effective date. This prohibition applies
    irrespective of the fact that at any time (whether prior to, on, or
    subsequent to the effective date) the registered or inscribed owner of
    any such security may have or might appear to have assigned,
    transferred, or otherwise disposed of the security.
    (f) The prohibitions in paragraphs (a) through (c) of this section
    apply except to the extent transactions are authorized by regulations,
    orders, directives, rulings, instructions, licenses, or otherwise, and
    notwithstanding any contracts entered into or any license or permit
    granted prior to the effective date.


    Sec. 560.212 Effect of transfers violating the provisions of this
    part.

    (a) Any transfer after the effective date that is in violation of
    any provision of this part or of any regulation, order, directive,
    ruling, instruction, or license issued pursuant to this part, and that
    involves any property or interest in property blocked pursuant to Sec.
    560.211, is null and void and shall not be the basis for the assertion
    or recognition of any interest in or right, remedy, power, or privilege
    with respect to such property or property interests.
    (b) No transfer before the effective date shall be the basis for
    the assertion or recognition of any right, remedy, power, or privilege
    with respect to, or any interest in, any property or interest in
    property blocked pursuant to Sec. 560.211, unless the person who holds
    or maintains such property, prior to that date, had written notice of
    the transfer or by any written evidence had recognized such transfer.
    (c) Unless otherwise provided, a license or other authorization
    issued by the Office of Foreign Assets Control before, during, or after
    a transfer shall validate such transfer or make it enforceable to the
    same extent that it would be valid or enforceable but for the
    provisions of this part and any regulation, order, directive, ruling,
    instruction, or license issued pursuant to this part.
    (d) Transfers of property that otherwise would be null and void or
    unenforceable by virtue of the provisions of this section shall not be
    deemed to be null and void or unenforceable as to any person with whom
    such property is or was held or maintained (and as to such person only)
    in cases in which such person is able to establish to the satisfaction
    of the Office of Foreign Assets Control each of the following:
    (1) Such transfer did not represent a willful violation of the
    provisions of this part by the person with whom such property is or was
    held or maintained (and as to such person only);
    (2) The person with whom such property is or was held or maintained
    did not have reasonable cause to know or suspect, in view of all the
    facts and circumstances known or available to such person, that such
    transfer required a license or authorization issued pursuant to this
    part and was not so licensed or authorized, or, if a license or
    authorization did purport to cover the transfer, that such license or
    authorization had been obtained by misrepresentation of a third party
    or withholding of material facts or was otherwise fraudulently
    obtained; and
    (3) The person with whom such property is or was held or maintained
    filed with the Office of Foreign Assets Control a report setting forth
    in full the circumstances relating to such transfer promptly upon
    discovery that:
    (i) Such transfer was in violation of the provisions of this part
    or any regulation, ruling, instruction, license, or other directive or
    authorization issued pursuant to this part;
    (ii) Such transfer was not licensed or authorized by the Office of
    Foreign Assets Control; or
    (iii) If a license did purport to cover the transfer, such license
    had been obtained by misrepresentation of a third party or withholding
    of material facts or was otherwise fraudulently obtained.

    Note to paragraph (d) of Sec. 560.212: The filing of a report
    in accordance with the provisions of paragraph (d)(3) of this
    section shall not be deemed evidence that the terms of paragraphs
    (d)(1) and (d)(2) of this section have been satisfied.

    (e) Unless licensed pursuant to this part, any attachment,
    judgment, decree, lien, execution, garnishment, or other judicial
    process is null and void with respect to any property and interests in
    property blocked pursuant to Sec. 560.211.


    Sec. 560.213 Holding of funds in interest-bearing accounts;
    investment and reinvestment.

    (a) Except as provided in paragraphs (e) or (f) of this section, or
    as otherwise directed by the Office of Foreign Assets Control, any U.S.
    person holding funds, such as currency, bank deposits, or liquidated
    financial obligations, subject to Sec. 560.211 shall hold or place
    such funds in a blocked interest-bearing account located in the United
    States.
    (b)(1) For purposes of this section, the term blocked interest-
    bearing account means a blocked account:

    [[Page 64671]]

    (i) In a Federally-insured U.S. bank, thrift institution, or credit
    union, provided the funds are earning interest at rates that are
    commercially reasonable; or
    (ii) With a broker or dealer registered with the Securities and
    Exchange Commission under the Securities Exchange Act of 1934 (15
    U.S.C. 78a et seq.), provided the funds are invested in a money market
    fund or in U.S. Treasury bills.
    (2) Funds held or placed in a blocked account pursuant to paragraph
    (a) of this section may not be invested in instruments the maturity of
    which exceeds 180 days.
    (c) For purposes of this section, a rate is commercially reasonable
    if it is the rate currently offered to other depositors on deposits or
    instruments of comparable size and maturity.
    (d) For purposes of this section, if interest is credited to a
    separate blocked account or subaccount, the name of the account party
    on each account must be the same.
    (e) Blocked funds held in instruments the maturity of which exceeds
    180 days at the time the funds become subject to Sec. 560.211 may
    continue to be held until maturity in the original instrument, provided
    any interest, earnings, or other proceeds derived therefrom are paid
    into a blocked interest-bearing account in accordance with paragraphs
    (a) or (f) of this section.
    (f) Blocked funds held in accounts or instruments outside the
    United States at the time the funds become subject to Sec. 560.211 may
    continue to be held in the same type of accounts or instruments,
    provided the funds earn interest at rates that are commercially
    reasonable.
    (g) This section does not create an affirmative obligation for the
    holder of blocked tangible property, such as chattels or real estate,
    or of other blocked property, such as debt or equity securities, to
    sell or liquidate such property. However, the Office of Foreign Assets
    Control may issue licenses permitting or directing such sales or
    liquidation in appropriate cases.
    (h) Funds subject to this section may not be held, invested, or
    reinvested in a manner that provides immediate financial or economic
    benefit or access to any person whose property and interests in
    property are blocked pursuant to Sec. 560.211, nor may their holder
    cooperate in or facilitate the pledging or other attempted use as
    collateral of blocked funds or other assets.


    Sec. 560.214 Expenses of maintaining blocked physical property;
    liquidation of blocked property.

    (a) Except as otherwise authorized, and notwithstanding the
    existence of any rights or obligations conferred or imposed by any
    international agreement or contract entered into or any license or
    permit granted prior to the effective date, all expenses incident to
    the maintenance of physical property blocked pursuant to Sec. 560.211
    shall be the responsibility of the owners or operators of such
    property, which expenses shall not be met from blocked funds.
    (b) Property blocked pursuant to Sec. 560.211 may, in the
    discretion of the Office of Foreign Assets Control, be sold or
    liquidated and the net proceeds placed in a blocked interest-bearing
    account in the name of the owner of the property.

    Subpart C--General Definitions


    Sec. 560.301 Effective date.

    The term effective date refers to the effective date of the
    applicable prohibitions and directives contained in this part as
    follows:
    (a) With respect to the prohibitions and directives in Sec.
    560.201 and Sec. Sec. 560.204 through 560.209 is 12:01 a.m., Eastern
    Daylight Time, August 20, 1997. For the effective date of pre-existing
    regulations and directives, see the Executive orders in the Authority
    citation for this part and implementing regulations.
    (b) With respect to prohibited transfers or other dealings in
    blocked property and interests in property of the Government of Iran,
    as defined in Sec. 560.304, and Iranian financial institutions, as
    defined in Sec. 560.324, 12:01 a.m. eastern standard time, February 6,
    2012; and
    (c) With respect to a person whose property and interests in
    property are otherwise blocked pursuant to paragraph (c) of Sec.
    560.211, the earlier of the date of actual or constructive notice that
    such person's property and interests in property are blocked.


    Sec. 560.302 [Reserved].


    Sec. 560.303 Iran; Iranian.

    The term Iran means the territory of Iran and any other territory
    or marine area, including the exclusive economic zone and continental
    shelf, over which the Government of Iran claims sovereignty, sovereign
    rights, or jurisdiction, provided that the Government of Iran exercises
    partial or total de facto control over the area or derives a benefit
    from economic activity in the area pursuant to an international
    agreement. The term Iranian means pertaining to Iran as defined in this
    section.


    Sec. 560.304 Government of Iran.

    The term Government of Iran includes:
    (a) The state and the Government of Iran, as well as any political
    subdivision, agency, or instrumentality thereof, including the Central
    Bank of Iran;
    (b) Any person owned or controlled, directly or indirectly, by the
    foregoing;
    (c) Any person to the extent that such person is, or has been,
    since the effective date, acting or purporting to act, directly or
    indirectly, for or on behalf of the foregoing; and
    (d) Any other person determined by the Office of Foreign Assets
    Control to be included within paragraphs (a) through (c) of this
    section.

    Note 1 to Sec. 560.304: The names of persons that OFAC has
    determined fall within this definition are published in the Federal
    Register and incorporated into the Office of Foreign Assets
    Control's Specially Designated Nationals and Blocked Persons List
    (``SDN List'') with the identifier ``[IRAN].'' The SDN List is
    accessible through the following page on the Office of Foreign
    Assets Control's Web site: www.treasury.gov/sdn. However, the
    property and interests in property of persons falling within the
    definition of the term Government of Iran are blocked pursuant to
    Sec. 560.211 regardless of whether the names of such persons are
    published in the Federal Register or incorporated into the SDN List.


    Note 2 to Sec. 560.304: Section 501.807 of this chapter
    describes the procedures to be followed by persons seeking
    administrative reconsideration of OFAC's determination that they
    fall within the definition of the term Government of Iran.

    Sec. 560.305 Person; entity.

    (a) The term person means an individual or entity.
    (b) The term entity means a partnership, association, trust, joint
    venture, corporation, group, subgroup, or other organization.


    Sec. 560.306 Iranian-origin goods or services; goods or services
    owned or controlled by the Government of Iran.

    (a) The terms goods of Iranian origin and Iranian-origin goods
    include:
    (1) Goods grown, produced, manufactured, extracted, or processed in
    Iran; and
    (2) Goods which have entered into Iranian commerce.
    (b) The terms services of Iranian origin and Iranian-origin
    services include:
    (1) Services performed in Iran or by an entity organized under the
    laws of

    [[Page 64672]]

    Iran or any jurisdiction within Iran, or a person residing in Iran; and
    (2) Services performed outside Iran by a citizen, national or
    permanent resident of Iran who is ordinarily resident in Iran, or by an
    entity organized under the laws of Iran or any jurisdiction within
    Iran.
    (c) The term goods or services owned or controlled by the
    Government of Iran includes:
    (1) Goods grown, produced, manufactured, extracted or processed by
    the Government of Iran or goods in its possession or control; and
    (2) Services performed by the Government of Iran.
    (d) The terms services of Iranian-origin, Iranian-origin services,
    and services owned or controlled by the Government of Iran do not
    include:
    (1) Diplomatic and consular services performed by or on behalf of
    the Government of Iran;
    (2) Diplomatic and consular services performed by or on behalf of
    the Government of the United States; or
    (3) Services performed outside Iran by an Iranian citizen or
    national who is resident in the United States or a third country,
    provided such services are not performed by or on behalf of the
    Government of Iran (other than diplomatic and consular services), an
    entity organized under the laws of Iran or any jurisdiction within
    Iran, or a person located in Iran.


    Sec. 560.307 United States.

    The term United States means the United States, its territories and
    possessions, and all areas under the jurisdiction or authority thereof.


    Sec. 560.308 Importation of goods.

    With respect to goods (including software), the term importation
    means the bringing of any goods into the United States, except that in
    the case of goods transported by vessel, importation means the bringing
    of any goods into the United States with the intent to unlade them.


    Sec. 560.309 [Reserved]


    Sec. 560.310 License.

    Except as otherwise specified, the term license means any license
    or authorization contained in or issued pursuant to this part.


    Sec. 560.311 General license.

    The term general license means any license or authorization the
    terms of which are set forth in subpart E of this part.


    Sec. 560.312 Specific license.

    The term specific license means any license or authorization not
    set forth in subpart E of this part but issued pursuant to this part.


    Sec. 560.313 Entity owned or controlled by the Government of Iran.

    The term entity owned or controlled by the Government of Iran
    includes any corporation, partnership, association, or other entity in
    which the Government of Iran owns a 50 percent or greater interest or a
    controlling interest, and any entity which is otherwise controlled by
    that government.


    Sec. 560.314 United States person; U.S. person.

    The term United States person or U.S. person means any United
    States citizen, permanent resident alien, entity organized under the
    laws of the United States or any jurisdiction within the United States
    (including foreign branches), or any person in the United States.


    Sec. 560.315 Information or informational materials.

    (a) For purposes of this part, the term information or
    informational materials includes, but is not limited to, publications,
    films, posters, phonograph records, photographs, microfilms,
    microfiche, tapes, compact disks, CD ROMs, artworks, and news wire
    feeds.

    Note to paragraph (a) of Sec. 560.315: To be considered
    information or informational materials, artworks must be classified
    under chapter heading 9701, 9702, or 9703 of the Harmonized Tariff
    Schedule of the United States.

    (b) The term information or informational materials, with respect
    to exports, does not include items:
    (1) That were, as of April 30, 1994, or that thereafter become,
    controlled for export pursuant to section 5 of the Export
    Administration Act of 1979 (50 U.S.C. App. 2401-2420, the ``EAA''), or
    section 6 of the EAA to the extent that such controls promote the
    nonproliferation or antiterrorism policies of the United States; or
    (2) With respect to which acts are prohibited by 18 U.S.C. chapter
    37.


    Sec. 560.316 New investment.

    The term new investment means a transaction after 12:01 Eastern
    Daylight Time, May 7, 1995, that constitutes:
    (a) A commitment or contribution of funds or other assets; or
    (b) A loan or other extension of credit, as defined in Sec.
    560.317.


    Sec. 560.317 Credits or loans.

    The term credits or loans means any transfer or extension of funds
    or credit on a basis of an obligation to repay, or any assumption or
    guarantee of the obligation of another to repay an extension of funds
    or credit, including but not limited to: Overdrafts; currency swaps;
    purchases of debt securities issued by the Government of Iran;
    purchases of a loan made by another person; sales of financial assets
    subject to an agreement to repurchase; renewals or refinancings whereby
    funds or credits are transferred to or extended to a prohibited
    borrower or prohibited recipient; the issuance of standby letters of
    credit; and drawdowns on existing lines of credit.


    Sec. 560.318 [Reserved]


    Sec. 560.319 United States depository institution.

    The term United States depository institution means any entity
    (including its foreign branches) organized under the laws of the United
    States or any jurisdiction within the United States, or any agency,
    office, or branch located in the United States of a foreign entity,
    that is engaged primarily in the business of banking (for example,
    banks, savings banks, savings associations, credit unions, trust
    companies, and United States bank holding companies).


    Sec. 560.320 Iranian accounts.

    The term Iranian accounts means accounts of persons who are
    ordinarily resident in Iran, except when such persons are not located
    in Iran, or of the Government of Iran, an Iranian financial
    institution, or any other person whose property and interests in
    property are blocked pursuant to Sec. 560.211 of this part, maintained
    on the books of either a United States depository institution or a
    United States registered broker or dealer in securities.


    Sec. 560.321 United States registered broker or dealer in securities.

    The term United States registered broker or dealer in securities
    means any U.S. citizen, permanent resident alien, or entity organized
    under the laws of the United States or of any jurisdiction within the
    United States (including its foreign branches), or any agency, office
    or branch of a foreign entity located in the United States, that:
    (a) Is a ``broker'' or ``dealer'' in securities within the meanings
    set forth in the Securities Exchange Act of 1934;
    (b) Holds or clears customer accounts; and
    (c) Is registered with the Securities and Exchange Commission under
    the Securities Exchange Act of 1934.


    Sec. 560.322 Blocked account; blocked property.

    The terms blocked account and blocked property shall mean any
    account or property subject to the

    [[Page 64673]]

    prohibitions in Sec. 560.211 held in the name of the Government of
    Iran, any Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to Sec.
    560.211, or in which the Government of Iran, an Iranian financial
    institution, or such person has an interest, and with respect to which
    payments, transfers, exportations, withdrawals, or other dealings may
    not be made or effected except pursuant to an authorization or license
    from the Office of Foreign Assets Control expressly authorizing such
    action.

    Note to Sec. 560.322: See Sec. 560.425 concerning the blocked
    status of property and interests in property of an entity that is 50
    percent or more owned by a person whose property and interests in
    property are blocked pursuant to Sec. 560.211.

    Sec. 560.323 Interest.

    Except as otherwise provided in this part, the term interest, when
    used with respect to property (e.g., ``an interest in property''),
    means an interest of any nature whatsoever, direct or indirect.


    Sec. 560.324 Iranian financial institution.

    The term Iranian financial institution means any entity (including
    foreign branches), wherever located, organized under the laws of Iran
    or any jurisdiction within Iran, or owned or controlled by the
    Government of Iran, or in Iran, or owned or controlled by any of the
    foregoing, that is engaged in the business of accepting deposits,
    making, granting, transferring, holding, or brokering loans or credits,
    or purchasing or selling foreign exchange, securities, commodity
    futures or options, or procuring purchasers and sellers thereof, as
    principal or agent. It includes but is not limited to depository
    institutions, banks, savings banks, money service businesses, trust
    companies, insurance companies, securities brokers and dealers,
    commodity futures and options brokers and dealers, forward contract and
    foreign exchange merchants, securities and commodities exchanges,
    clearing corporations, investment companies, employee benefit plans,
    and holding companies, affiliates, or subsidiaries of any of the
    foregoing.


    Sec. 560.325 Property; property interest.

    The terms property and property interest include, but are not
    limited to, money, checks, drafts, bullion, bank deposits, savings
    accounts, debts, indebtedness, obligations, notes, guarantees,
    debentures, stocks, bonds, coupons, any other financial instruments,
    bankers acceptances, mortgages, pledges, liens or other rights in the
    nature of security, warehouse receipts, bills of lading, trust
    receipts, bills of sale, any other evidences of title, ownership or
    indebtedness, letters of credit and any documents relating to any
    rights or obligations thereunder, powers of attorney, goods, wares,
    merchandise, chattels, stocks on hand, ships, goods on ships, real
    estate mortgages, deeds of trust, vendors' sales agreements, land
    contracts, leaseholds, ground rents, real estate and any other interest
    therein, options, negotiable instruments, trade acceptances, royalties,
    book accounts, accounts payable, judgments, patents, trademarks or
    copyrights, insurance policies, safe deposit boxes and their contents,
    annuities, pooling agreements, services of any nature whatsoever,
    contracts of any nature whatsoever, and any other property, real,
    personal, or mixed, tangible or intangible, or interest or interests
    therein, present, future, or contingent.


    Sec. 560.326 Transfer.

    The term transfer means any actual or purported act or transaction,
    whether or not evidenced by writing, and whether or not done or
    performed within the United States, the purpose, intent, or effect of
    which is to create, surrender, release, convey, transfer, or alter,
    directly or indirectly, any right, remedy, power, privilege, or
    interest with respect to any property. Without limitation on the
    foregoing, it shall include the making, execution, or delivery of any
    assignment, power, conveyance, check, declaration, deed, deed of trust,
    power of attorney, power of appointment, bill of sale, mortgage,
    receipt, agreement, contract, certificate, gift, sale, affidavit, or
    statement; the making of any payment; the setting off of any obligation
    or credit; the appointment of any agent, trustee, or fiduciary; the
    creation or transfer of any lien; the issuance, docketing, filing, or
    levy of or under any judgment, decree, attachment, injunction,
    execution, or other judicial or administrative process or order, or the
    service of any garnishment; the acquisition of any interest of any
    nature whatsoever by reason of a judgment or decree of any foreign
    country; the fulfillment of any condition; the exercise of any power of
    appointment, power of attorney, or other power; or the acquisition,
    disposition, transportation, importation, exportation, or withdrawal of
    any security.


    Sec. 560.327 U.S. financial institution.

    The term U.S. financial institution means any U.S. entity
    (including its foreign branches) that is engaged in the business of
    accepting deposits, making, granting, transferring, holding, or
    brokering loans or credits, or purchasing or selling foreign exchange,
    securities, commodity futures or options, or procuring purchasers and
    sellers thereof, as principal or agent. It includes but is not limited
    to depository institutions, banks, savings banks, trust companies,
    securities brokers and dealers, commodity futures and options brokers
    and dealers, forward contract and foreign exchange merchants,
    securities and commodities exchanges, clearing corporations, investment
    companies, employee benefit plans, and U.S. holding companies, U.S.
    affiliates, or U.S. subsidiaries of any of the foregoing. This term
    includes those branches, offices, and agencies of foreign financial
    institutions that are located in the United States, but not such
    institutions' foreign branches, offices, or agencies.

    Subpart D--Interpretations


    Sec. 560.401 Reference to amended sections.

    Except as otherwise specified, reference to any provision in or
    appendix to this part or chapter or to any regulation, ruling, order,
    instruction, directive, or license issued pursuant to this part refers
    to the same as currently amended.


    Sec. 560.402 Effect of amendment.

    Unless otherwise specifically provided, any amendment,
    modification, or revocation of any provision in or appendix to this
    part or chapter or of any order, regulation, ruling, instruction, or
    license issued by the Office of Foreign Assets Control does not affect
    any act done or omitted, or any civil or criminal proceeding commenced
    or pending, prior to such amendment, modification, or revocation. All
    penalties, forfeitures, and liabilities under any such order,
    regulation, ruling, instruction, or license continue and may be
    enforced as if such amendment, modification, or revocation had not been
    made.


    Sec. 560.403 Transshipment or transit through Iran.

    The prohibitions in Sec. Sec. 560.204, 560.206, and 560.208 apply
    to export, reexport or supply transactions which require a
    transshipment or transit of goods or technology through Iran to third
    countries.


    Sec. 560.404 [Reserved]


    Sec. 560.405 Transactions ordinarily incident to a licensed
    transaction authorized.

    Any transaction ordinarily incident to a licensed transaction and
    necessary to

    [[Page 64674]]

    give effect thereto is also authorized, except:
    (a) An ordinarily incident transaction, not explicitly authorized
    within the terms of the license, involving a debit to a blocked account
    or a transfer of blocked property;
    (b) Payments or transfers of funds;

    Note to paragraph (b) of Sec. 560.405: See Sec. 560.516 for a
    general license authorizing United States depository institutions or
    United States registered brokers or dealers in securities to process
    transfers of funds if the transfer arises from, and is ordinarily
    incident and necessary to give effect to, an underlying transaction
    authorized by a specific or general license issued pursuant to, or
    set forth in, this part.

    (c) Provision of any transportation services to or from Iran not
    explicitly authorized in or pursuant to this part other than loading,
    transporting, and discharging licensed or exempt cargo there;
    (d) Distribution or leasing in Iran of any containers or similar
    goods owned or controlled by United States persons after the
    performance of transportation services to Iran; and
    (e) Financing of sales for the exportation or reexportation of
    agricultural commodities, medicine, and medical devices that is
    authorized by general or specific license pursuant to Sec. 560.530.

    Note to paragraph (e) of Sec. 560.405: See Sec. 560.530(a)(2)
    and (a)(3) for general licenses authorizing, with certain
    exceptions, the exportation or reexportation of food, medicine, and
    generally licensed medical devices to the Government of Iran,
    individuals or entities in Iran, or persons in third countries
    purchasing specifically for resale to any of the foregoing. These
    general licenses also authorize the conduct of related transactions,
    including, but not limited to, financing and payment, provided that
    payment terms and financing are limited to, and consistent with,
    those authorized by Sec. 560.532. Also, see Sec. 560.532 for a
    general license for payment terms for sales authorized by one of the
    general licenses set forth in paragraphs (a)(2) and (a)(3) of Sec.
    560.530 or by a specific license issued pursuant to paragraph (a)(1)
    of the same section.

    Sec. 560.406 Transshipment or transit through the United States.

    (a) The prohibitions in Sec. 560.201 apply to the importation into
    the United States, for transshipment or transit, of Iranian-origin
    goods or goods owned or controlled by the Government of Iran which are
    intended or destined for third countries.
    (b) The prohibitions in Sec. 560.204 apply to the transshipment or
    transit of foreign goods through the United States which are intended
    or destined for Iran or the Government of Iran, including entities
    owned or controlled by the Government of Iran.
    (c) Goods in which the Government of Iran, any Iranian financial
    institution, or any other person whose property and interests in
    property are blocked pursuant to Sec. 560.211 has an interest which
    are imported into or transshipped through the United States are subject
    to the prohibitions in Sec. 560.211.


    Sec. 560.407 Transactions related to Iranian-origin goods.

    (a) Importation into the United States from third countries of
    goods containing Iranian-origin raw materials or components and
    transactions relating to such goods are not prohibited by Sec. 560.201
    or Sec. 560.206 if those raw materials or components have been
    incorporated into manufactured products or substantially transformed in
    a third country by a person other than a United States person.
    (b) Transactions relating to Iranian-origin goods that have not
    been incorporated into manufactured products or substantially
    transformed in a third country are prohibited.


    Sec. 560.408 Importation into and release from a bonded warehouse or
    foreign trade zone.

    The prohibitions in Sec. 560.201 apply to importation into a
    bonded warehouse or a foreign trade zone of the United States.


    Sec. 560.409 [Reserved]


    Sec. 560.410 Provision of services.

    (a) The prohibition on the exportation, reexportation, sale or
    supply of services contained in Sec. 560.204 applies to services
    performed on behalf of a person in Iran or the Government of Iran or
    where the benefit of such services is otherwise received in Iran, if
    such services are performed:
    (1) In the United States, or
    (2) Outside the United States by a United States person, including
    by an overseas branch of an entity located in the United States.
    (b) The benefit of services performed anywhere in the world on
    behalf of the Government of Iran is presumed to be received in Iran.
    (c) The prohibitions on transactions involving blocked property
    contained in Sec. 560.211 apply to services performed in the United
    States or by U.S. persons, wherever located, including by an overseas
    branch of an entity located in the United States:
    (1) On behalf of or for the benefit of the Government of Iran, an
    Iranian financial institution, or any other person whose property and
    interests in property are blocked pursuant to Sec. 560.211; or
    (2) With respect to property interests of the Government of Iran,
    an Iranian financial institution, or any other person whose property
    and interests in property are blocked pursuant to Sec. 560.211.
    (d) Example. A United States person is engaged in a prohibited
    exportation of services to Iran when it extends credit to a third-
    country firm specifically to enable that firm to manufacture goods for
    sale to Iran or for an entity of the Government of Iran. See also Sec.
    560.416.


    Sec. 560.411 [Reserved]


    Sec. 560.412 Extensions of credit or loans to Iran.

    (a) The prohibitions contained in Sec. Sec. 560.204 and 560.207
    apply to but are not limited to the unauthorized renewal or
    rescheduling of credits or loans in existence as of May 6, 1995, such
    as the extension of a standby letter of credit.
    (b) The prohibitions contained in Sec. 560.209 apply, among other
    things, to the unauthorized renewal or rescheduling of credits or loans
    in existence as of March 15, 1995.
    (c) The prohibitions contained in Sec. Sec. 560.204, 560.207 and
    560.209 apply to, among other things, credits or loans in any currency.


    Sec. 560.413 [Reserved]


    Sec. 560.414 Reexportation of certain U.S.-origin goods exported
    prior to May 7, 1995.

    The prohibitions on reexportation in Sec. 560.205 do not apply to
    United States-origin goods or technology that were exported from the
    United States prior to 12:01 a.m., Eastern Daylight Time, May 7, 1995,
    if:
    (a) Such goods or technology were not the property of a United
    States person as of 12:01 a.m. Eastern Daylight Time, May 7, 1995; and
    (b) The reexportation of the U.S.-origin goods or technology to
    Iran or the Government of Iran was not subject to reexport (as opposed
    to export) license application requirements under U.S. regulations in
    effect prior to May 6, 1995.

    Note 1 to Sec. 560.414: The exclusion in this section applies,
    among other things, to goods that were as of May 6, 1995, classified
    under the U.S. Department of Commerce's Export Administration
    Regulations (15 CFR parts 730 through 774) as ECCNs 2A994; 3A993;
    5A992; 5A995; 6A990; 6A994; 7A994; 8A992; 8A994; 9A990; 9A992; and
    9A994, that were exported from the United States prior to 12:01 a.m.
    Eastern Daylight Time, May 7, 1995, and were not the property of a
    United States person as of 12:01 a.m. Eastern Daylight Time, May 7,
    1995. As of April 26, 1999, items covered by this note are

    [[Page 64675]]

    classified under ECCNs 2A994; 3A992.a; 5A991.f; 5A992.a and .c;
    6A991; 6A998.a; 7A994; 8A992.d, .e, .f and .g; 9A990.a and .b; and
    9A991.d and .e.


    Note 2 to Sec. 560.414: A reexportation of U.S.-origin goods
    or technology which meets the conditions of paragraph (a) of this
    section, or which is not within the scope of Sec. 560.205,
    nevertheless may require specific authorization by other agencies of
    the U.S. Government for reexportation to Iran or the Government of
    Iran. For example, items which meet the conditions of paragraph (a)
    may nevertheless require an export license under the End User and
    End Use Control Policies found in provisions of the Export
    Administration Regulations (15 CFR part 744).

    Sec. 560.415 [Reserved]


    Sec. 560.416 Brokering services.

    (a) For purposes of the prohibitions in Sec. Sec. 560.201,
    560.204, 560.205, 560.206, and 560.208, the term services includes
    performing a brokering function.
    (b) Examples. A person within the United States, or a United States
    person, wherever located, may not:
    (1) Act as broker for the provision of goods, services or
    technology, from whatever source, to or from Iran or the Government of
    Iran;
    (2) Act as broker for the purchase or swap of crude oil of Iranian
    origin or owned or controlled by the Government of Iran;
    (3) Act as broker for the provision of financing, a financial
    guarantee or an extension of credit by any person to Iran or the
    Government of Iran;
    (4) Act as a broker for the provision of financing, a financial
    guarantee or an extension of credit to any person specifically to
    enable that person to construct or operate a facility in Iran or owned
    or controlled by the Government of Iran; or
    (5) Act as a broker for the provision of financing, a financial
    guarantee, or an extension of credit to any person specifically to
    enable that person to provide goods, services, or technology intended
    for Iran or the Government of Iran.


    Sec. 560.417 Facilitation; change of policies and procedures;
    referral of business opportunities offshore.

    With respect to Sec. 560.208, a prohibited facilitation or
    approval of a transaction by a foreign person occurs, among other
    instances, when a United States person:
    (a) Alters its operating policies or procedures, or those of a
    foreign affiliate, to permit a foreign affiliate to accept or perform a
    specific contract, engagement or transaction involving Iran or the
    Government of Iran without the approval of the United States person,
    where such transaction previously required approval by the United
    States person and such transaction by the foreign affiliate would be
    prohibited by this part if performed directly by a United States person
    or from the United States;
    (b) Refers to a foreign person purchase orders, requests for bids,
    or similar business opportunities involving Iran or the Government of
    Iran to which the United States person could not directly respond as a
    result of the prohibitions contained in this part; or
    (c) Changes the operating policies and procedures of a particular
    affiliate with the specific purpose of facilitating transactions that
    would be prohibited by this part if performed by a United States person
    or from the United States.


    Sec. 560.418 Release of technology or software in the United States
    or a third country.

    The release of technology or software in the United States, or by a
    United States person wherever located, to any person violates the
    prohibitions of this part if made with knowledge or reason to know the
    technology is intended for Iran or the Government of Iran, unless that
    technology or software meets the definition of information and
    informational materials in Sec. 560.315.

    Note 1 to Sec. 560.418: The release of technology or software
    in the United States, or the release of U.S. origin technology or
    software in a third country, to a foreign national may require a
    license from the U.S. Department of Commerce's Bureau of Industry
    and Security under the Export Administration Regulations, 15 CFR
    parts 730 through 774 (the ``EAR''). The EAR require a license for
    such release if both of the following conditions are met:
    (a) That technology or software would require a license for
    exportation (or reexportation) to the home country of the foreign
    national; and
    (b) The foreign national is not a citizen or permanent resident
    of the United States (or of the third country) or is not a protected
    individual under the Immigration and Naturalization Act (8 U.S.C.
    Sec. 1324(b)(a)(3)). See 15 CFR 734.2(b)(2)(ii) and 734.2(b)(5).


    Note 2 to Sec. 560.418: The transfer to a foreign national of
    technology subject to regulations administered by the U.S.
    Department of State or other agencies of the U.S. Government may
    require authorization by those agencies.

    Sec. 560.419 U.S. employment of persons ordinarily resident in Iran.

    The prohibitions in Sec. 560.201 make it unlawful to hire an
    Iranian national ordinarily resident in Iran to come to the United
    States solely or for the principal purpose of engaging in employment on
    behalf of an entity in Iran or as the employee of a U.S. person, unless
    authorized pursuant to Sec. 560.505. See also Sec. 560.418 with
    respect to the release of technology and software.


    Sec. 560.420 Reexportation by non-U.S. persons of certain foreign-
    made products containing U.S.-origin goods or technology.

    For purposes of satisfying the de minimis content rule in Sec.
    560.205(b)(2):
    (a) U.S.-origin goods (excluding software) falling within the
    definition in Sec. 560.205 must comprise less than 10 percent of the
    total value of the foreign-made good (excluding software);
    (b) U.S.-origin software falling within the definition in Sec.
    560.205 must comprise less than 10 percent of the total value of the
    foreign-made software;
    (c) U.S.-origin technology falling within the definition in Sec.
    560.205 must comprise less than 10 percent of the total value of the
    foreign-made technology; and,
    (d) In cases involving a complex product made of a combination of
    U.S.-origin goods (including software) and technology falling within
    the definition in Sec. 560.205, the aggregate value of all such U.S.-
    origin goods (including software) and such technology contained in the
    foreign-made product must be less than 10 percent of the total value of
    the foreign-made product.

    Note 1 to Sec. 560.420: Notwithstanding the exceptions
    contained in Sec. 560.205(b)(1) and (b)(2) and this section, a
    reexportation to Iran or the Government of Iran of U.S.-origin items
    falling within the definition in Sec. 560.205 is prohibited if
    those U.S.-origin goods (including software) or that technology have
    been substantially transformed or incorporated into a foreign-made
    end product which is destined to end uses or end users prohibited
    under regulations administered by other U.S. Government agencies.
    See, e.g., the Export Administration Regulations (31 CFR
    736.2(b)(5), 744.2, 744.3, 744.4, 744.7, and 744.10); International
    Traffic in Arms Regulations (22 CFR 123.9).


    Note 2 to Sec. 560.420: A reexportation not prohibited by
    Sec. 560.205 may nevertheless require authorization by the U.S.
    Department of Commerce, the U.S. Department of State or other
    agencies of the U.S. Government.


    Note 3 to Sec. 560.420: The provisions of Sec. 560.205 and
    this section apply only to persons other than United States persons.

    Sec. 560.421 Setoffs prohibited.

    A setoff against blocked property (including a blocked account),
    whether by a U.S. bank or other U.S. person, is a prohibited transfer
    under Sec. 560.211 if effected after the effective date.

    [[Page 64676]]

    Sec. 560.422 Termination and acquisition of an interest in blocked
    property.

    (a) Whenever a transaction licensed or authorized by or pursuant to
    this part results in the transfer of property (including any property
    interest) away from the Government of Iran, an Iranian financial
    institution, or any other person whose property and interests in
    property are blocked pursuant to Sec. 560.211, such property shall no
    longer be deemed to be property blocked pursuant to Sec. 560.211,
    unless there exists in the property another interest that is blocked
    pursuant to Sec. 560.211, the transfer of which has not been effected
    pursuant to license or other authorization.
    (b) Unless otherwise specifically provided in a license or
    authorization issued pursuant to this part, if property (including any
    property interest) is transferred or attempted to be transferred to the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211, such property shall be deemed to be property in which
    the Government of Iran, an Iranian financial institution, or that
    person has an interest and therefore blocked.


    Sec. 560.423 Offshore transactions involving blocked property.

    The prohibitions in Sec. 560.211 on transactions or dealings
    involving blocked property apply to transactions by any U.S. person in
    a location outside the United States with respect to property held in
    the name of the Government of Iran, an Iranian financial institution,
    or any other person whose property and interests in property are
    blocked pursuant to Sec. 560.211, or property in which the Government
    of Iran, an Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to Sec.
    560.211 has or has had an interest since the effective date.


    Sec. 560.424 Payments from blocked accounts to satisfy obligations
    prohibited.

    Pursuant to Sec. 560.211, no debits may be made to a blocked
    account to pay obligations to U.S. persons or other persons, except as
    authorized by or pursuant to this part.

    Note to Sec. 560.424: See also Sec. 560.502(f), which
    provides that no license or other authorization contained in or
    issued pursuant to this part authorizes transfers of or payments
    from blocked property or debits to blocked accounts unless the
    license or other authorization explicitly authorizes the transfer of
    or payment from blocked property or the debit to a blocked account.

    Sec. 560.425 Entities owned by a person whose property and interests
    in property are blocked.

    A person whose property and interests in property are blocked
    pursuant to Sec. 560.211 has an interest in all property and interests
    in property of an entity in which it owns, directly or indirectly, a 50
    percent or greater interest. The property and interests in property of
    such an entity, therefore, are blocked, and such an entity is a person
    whose property and interests in property are blocked pursuant to Sec.
    560.211, regardless of whether the entity itself is designated pursuant
    to Sec. 560.211.

    Note to Sec. 560.425: This section, which deals with the
    consequences of ownership of entities, in no way limits the
    definition of the Government of Iran in Sec. 560.304.

    Sec. 560.426 Charitable contributions.

    Unless specifically authorized by the Office of Foreign Assets
    Control pursuant to this part, no charitable contribution of funds,
    goods, services, or technology, including contributions to relieve
    human suffering, such as food, clothing or medicine, may be made by,
    to, or for the benefit of, or received from, the Government of Iran, an
    Iranian financial institution, or any other person whose property and
    interests in property are blocked pursuant to Sec. 560.211. For the
    purposes of this part, a contribution is made by, to, or for the
    benefit of, or received from, the Government of Iran, an Iranian
    financial institution, or any other person whose property and interests
    in property are blocked pursuant to Sec. 560.211 if made by, to, or in
    the name of, or received from or in the name of, such a person; if made
    by, to, or in the name of, or received from or in the name of, an
    entity or individual acting for or on behalf of, or owned or controlled
    by, such a person; or if made in an attempt to violate, to evade, or to
    avoid the bar on the provision of contributions by, to, or for the
    benefit of such a person, or the receipt of contributions from any such
    person.


    Sec. 560.427 Exportation, reexportation, sale or supply of financial
    services to Iran or the Government of Iran.

    (a) The prohibition on the exportation, reexportation, sale or
    supply of financial services to Iran or the Government of Iran
    contained in Sec. 560.204 applies to:
    (1) The transfer of funds, directly or indirectly, from the United
    States or by a U.S. person, wherever located, to Iran or the Government
    of Iran; and
    (2) The provision, directly or indirectly, to Iran or the
    Government of Iran of insurance services, investment or brokerage
    services (including but not limited to brokering or trading services
    regarding securities, debt, commodities, options, or foreign exchange),
    banking services, money remittance services; loans, guarantees, letters
    of credit, or other extensions of credit; or the service of selling or
    redeeming traveler's checks, money orders, and prepaid access products.

    Note to paragraph (a) of Sec. 560.427: See Sec. 560.516 of
    this part, which authorizes only United States depository
    institutions and United States registered brokers or dealers in
    securities to process certain transfers of funds to or from Iran.

    (b) Pursuant to the prohibition in Sec. 560.204 on the
    exportation, reexportation, sale or supply of financial services to
    Iran or the Government of Iran, United States depository institutions
    and United States registered brokers or dealers in securities are
    prohibited from performing services with respect to Iranian accounts,
    as defined in Sec. 560.320.

    Note to paragraph (b) of Sec. 560.427: See Sec. 560.517 of
    this part for general licenses authorizing United States depository
    institutions and United States registered brokers or dealers in
    securities to operate Iranian accounts in certain limited
    circumstances.

    Sec. 560.428 Credit extended and cards issued by U.S. financial
    institutions.

    The prohibition in Sec. 560.211 on dealing in property subject to
    that section prohibits U.S. financial institutions from performing
    under any existing credit agreements, including, but not limited to,
    charge cards, debit cards, or other credit facilities issued by a U.S.
    financial institution to the Government of Iran, an Iranian financial
    institution, or any other person whose property and interests in
    property are blocked pursuant to Sec. 560.211.

    Subpart E--Licenses, Authorizations, and Statements of Licensing
    Policy


    Sec. 560.501 General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501,
    subpart E of this chapter. Licensing actions taken pursuant to part 501
    of this chapter with respect to the prohibitions contained in this part
    are considered actions taken pursuant to this part. General licenses
    and statements of licensing policy relating to this part also may be
    available through the Iran sanctions page on the Office of Foreign
    Assets Control's Web site (www.treasury.gov/ofac).

    [[Page 64677]]

    Sec. 560.502 Effect of license or authorization.

    (a) No license or other authorization contained in this part, or
    otherwise issued by the Office of Foreign Assets Control, authorizes or
    validates any transaction effected prior to the issuance of such
    license or other authorization, unless specifically provided in such
    license or authorization.
    (b) No regulation, ruling, instruction, or license authorizes any
    transaction prohibited under this part unless the regulation, ruling,
    instruction, or license is issued by the Office of Foreign Assets
    Control and specifically refers to this part. No regulation, ruling,
    instruction, or license referring to this part shall be deemed to
    authorize any transaction prohibited by any other part of this chapter
    unless the regulation, ruling, instruction, or license specifically
    refers to such part.
    (c) Any regulation, ruling, instruction, or license authorizing any
    transaction otherwise prohibited under this part has the effect of
    removing a prohibition contained in this part from the transaction, but
    only to the extent specifically stated by its terms. Unless the
    regulation, ruling, instruction, or license otherwise specifies, such
    an authorization does not create any right, duty, obligation, claim, or
    interest in, or with respect to, any property which would not otherwise
    exist under ordinary principles of law.
    (d) All transactions involving property and interests in property
    of the Government of Iran, an Iranian financial institution, or any
    other person whose property and interests in property are blocked
    pursuant to Sec. 560.211 authorized under specific licenses issued
    pursuant to this part prior to February 6, 2012, are authorized, and
    such specific licenses shall remain in effect according to their terms,
    provided that such specific licenses have an expiration date. If a
    specific license issued pursuant to this part but not part 535 has no
    expiration date, then all transactions involving property and interests
    in property of the Government of Iran, an Iranian financial
    institution, or any other person whose property and interests in
    property are blocked pursuant to Sec. 560.211 authorized under such a
    specific license were authorized until April 6, 2012, and such a
    specific license shall otherwise expire in its entirety on January 22,
    2013. If a specific license issued pursuant to this part and part 535
    has no expiration date, then all transactions involving property and
    interests in property of the Government of Iran, an Iranian financial
    institution, or any other person whose property and interests in
    property are blocked pursuant to Sec. 560.211 authorized under such a
    specific license are authorized, and such a specific license shall
    remain in effect according to its terms. Nothing in this paragraph
    authorizes payments from blocked funds or debits to blocked accounts,
    except for payments from funds or debits to accounts blocked pursuant
    to part 535 that are authorized by specific licenses issued pursuant to
    this part and part 535 of this chapter.
    (e) Nothing contained in this part shall be construed to supersede
    the requirements established under any other provision of law or to
    relieve a person from any requirement to obtain a license or other
    authorization from another department or agency of the U.S. Government
    in compliance with applicable laws and regulations subject to the
    jurisdiction of that department or agency. For example, exports of
    goods, services, or technical data which are not prohibited by this
    part or which do not require a license by the Office of Foreign Assets
    Control, nevertheless may require authorization by the U.S. Department
    of Commerce, the U.S. Department of State, or other agencies of the
    U.S. Government. See also Sec. 560.701(d).
    (f) No license or other authorization contained in or issued
    pursuant to this part authorizes transfers of or payments from blocked
    property or debits to blocked accounts unless the license or other
    authorization explicitly authorizes the transfer of or payment from
    blocked property or the debit to a blocked account.
    (g) Any payment relating to a transaction authorized in or pursuant
    to this part that is routed through the U.S. financial system should
    reference the relevant Office of Foreign Assets Control general or
    specific license authorizing the payment to avoid the blocking or
    rejection of the transfer.


    Sec. 560.503 Exclusion from licenses.

    The Office of Foreign Assets Control reserves the right to exclude
    any person, property, transaction, or class thereof from the operation
    of any license or from the privileges conferred by any license. The
    Office of Foreign Assets Control also reserves the right to restrict
    the applicability of any license to particular persons, property,
    transactions, or classes thereof. Such actions are binding upon actual
    or constructive notice of the exclusions or restrictions.


    Sec. 560.504 [Reserved]


    Sec. 560.505 Activities and services related to certain nonimmigrant
    and immigrant categories authorized.

    (a)(1) Persons otherwise eligible for non-immigrant classification
    under categories A-3 and G-5 (attendants, servants and personal
    employees of aliens in the United States on diplomatic status), D
    (crewmen), F (students), I (information media representatives), J
    (exchange visitors), M (non-academic students), O (aliens with
    extraordinary ability), P (athletics, artists and entertainers), Q
    (international cultural exchange visitors), R (religious workers), or S
    (witnesses) are authorized to carry out in the United States those
    activities for which such a visa has been granted by the U.S. State
    Department or such nonimmigrant status or related benefit has been
    granted by the U.S. Department of Homeland Security.
    (2) U.S. persons are authorized to export services to Iran in
    connection with the filing of an individual's application for the non-
    immigrant visa categories listed in paragraph (b)(1) of this section.
    (b)(1) Persons otherwise eligible for nonimmigrant classification
    under categories E-2 (treaty investor), H (temporary worker), or L
    (intra-company transferee) and all immigrant classifications are
    authorized to carry out in the United States those activities for which
    such a visa has been granted by the U.S. State Department or such
    nonimmigrant or immigrant status, or related benefit, has been granted
    by the U.S. Department of Homeland Security, provided that the persons
    are not coming to the United States to work as an agent, employee, or
    contractor of the Government of Iran or a business entity or other
    organization in Iran.
    (2) U.S. persons are authorized to export services to Iran in
    connection with the filing of an individual's application for the visa
    categories listed in paragraph (b)(1) of this section.
    (c)(1) U.S. persons are authorized to engage in all transactions
    necessary to export financial services to Iran in connection with an
    individual's application for a non-immigrant visa under category E-2
    (treaty investor) or an immigrant visa under category EB-5 (immigrant
    investor), provided that any transfer of funds pursuant to the
    authorization set forth in this paragraph is effected in accordance
    with Sec. 560.516.
    (2) In the event services are exported under paragraph (c)(1) of
    this section in connection with an application for an E-2 or EB-5 visa
    that is denied, withdrawn, or otherwise does not result

    [[Page 64678]]

    in the issuance of such visa, U.S. persons are authorized to transfer,
    in a lump sum back to Iran or to a third country, any funds belonging
    to the applicant that are held in an escrow account during the pendency
    of, and in connection with, such visa application, provided that any
    transfer of funds pursuant to the authorization set forth in this
    paragraph is effected in accordance with Sec. 560.516.
    (3) Paragraph (c)(1) of this section does not authorize:
    (i) The exportation of financial services by U.S. persons other
    than in connection with funds used in pursuit of an E-2 or EB-5 visa;
    (ii) Any investment in Iran by a U.S. person;
    (iii) The exportation or reexportation to Iran of any goods
    (including software) or technology; or
    (iv) The provision of services to any persons coming to the United
    States to work as an agent, employee, or contractor of the Government
    of Iran or a business entity or other organization in Iran.
    (d) Paragraph (a)(1) of this section authorizes the release of
    technology or software to students ordinarily resident in Iran who are
    attending school in the United States as authorized by that paragraph,
    provided that all of the following requirements are met:
    (1) Such release is ordinarily incident and necessary to the
    educational program in which the student is enrolled;
    (2) The technology or software being released is designated as
    EAR99 under the Export Administration Regulations, 15 CFR parts 730
    through 774 (the ``EAR''), or constitutes Educational Information not
    subject to the EAR, as set forth in 15 CFR 734.9;
    (3) The release does not otherwise require a license from the
    Department of Commerce; and
    (4) The student to whom the release is made is not enrolled in
    school or participating in the educational program as an agent,
    employee, or contractor of the Government of Iran or a business entity
    or other organization in Iran.

    Note to Sec. 560.505: See Sec. 560.555 of this part for
    general licenses authorizing the importation and exportation of
    services related to conferences in the United States or third
    countries.

    Sec. 560.506 Importation and exportation of certain gifts authorized.

    The importation into the United States of Iranian-origin goods from
    Iran or a third country, and the exportation from the United States to
    Iran of goods, are authorized for goods sent as gifts to persons
    provided that the value of each gift is not more than $100; the goods
    are of a type and in quantities normally given as gifts between
    individuals; and the goods are not controlled for chemical and
    biological weapons (CB), missile technology (MT), national security
    (NS), or nuclear proliferation (NP). See Commerce Control List, Export
    Administration Regulations (15 CFR part 774).


    Sec. 560.507 [Reserved]


    Sec. 560.508 Telecommunications and mail transactions authorized.

    (a) All transactions with respect to the receipt and transmission
    of telecommunications involving Iran are authorized. This section does
    not authorize the provision, sale, or lease to Iran, the Government of
    Iran, an Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to Sec.
    560.211 of telecommunications equipment or technology; nor does it
    authorize the provision, sale, or leasing of capacity on
    telecommunications transmission facilities (such as satellite or
    terrestrial network connectivity).
    (b) All transactions by U.S. persons, including payment and
    transfers to common carriers, incident to the receipt or transmission
    of mail between the United States and Iran are authorized, provided
    that mail is limited to personal communications not involving a
    transfer of anything of value. For purposes of this section, the term
    mail includes parcels only to the extent the parcels contain goods
    exempted from the prohibitions contained in this part or otherwise
    eligible for importation from or exportation to Iran under a general or
    specific license.


    Sec. 560.509 Certain transactions related to patents, trademarks, and
    copyrights authorized.

    (a) All of the following transactions in connection with patent,
    trademark, copyright or other intellectual property protection in the
    United States or Iran are authorized, including importation of or
    dealing in Iranian-origin services, payment for such services, and
    payment to persons in Iran directly connected to such intellectual
    property protection:
    (1) The filing and prosecution of any application to obtain a
    patent, trademark, copyright or other form of intellectual property
    protection;
    (2) The receipt of a patent, trademark, copyright or other form of
    intellectual property protection;
    (3) The renewal or maintenance of a patent, trademark, copyright or
    other form of intellectual property protection; and
    (4) The filing and prosecution of opposition or infringement
    proceedings with respect to a patent, trademark, copyright or other
    form of intellectual property protection, or the entrance of a defense
    to any such proceedings.
    (b) This section authorizes the payment of fees currently due to
    the United States Government or the Government of Iran, or of the
    reasonable and customary fees and charges currently due to attorneys or
    representatives within the United States or Iran, in connection with
    the transactions authorized in paragraph (a) of this section, except
    that payment effected pursuant to the terms of this paragraph may not
    be made from a blocked account.


    Sec. 560.510 Transactions related to the resolution of disputes
    between the United States or United States nationals and the Government
    of Iran.

    (a) Except as otherwise authorized, specific licenses may be issued
    on a case-by-case basis to authorize transactions in connection with
    awards, decisions or orders of the Iran-United States Claims Tribunal
    in The Hague, the International Court of Justice, or other
    international tribunals (collectively, ``tribunals''); agreements
    settling claims brought before tribunals; and awards, orders, or
    decisions of an administrative, judicial, or arbitral proceeding in the
    United States or abroad, where the proceeding involves the enforcement
    of awards, decisions, or orders of tribunals, or is contemplated under
    an international agreement, or involves claims arising before 12:01
    a.m. Eastern Daylight Time, May 7, 1995, that resolve disputes between
    the Government of Iran and the United States or United States
    nationals, including the following transactions:
    (1) Importation into the United States of, or any transaction
    related to, goods and services of Iranian origin or owned or controlled
    by the Government of Iran;
    (2) Exportation or reexportation to Iran or the Government of Iran
    of any goods, technology, or services, except to the extent that such
    exportation or reexportation is also subject to export licensing
    application requirements of another agency of the United States
    Government and the granting of such a license by that agency would be
    prohibited by law;
    (3) Financial transactions related to the resolution of disputes at
    tribunals, including transactions related to the funding of proceedings
    or of accounts related to proceedings or to a tribunal; participation,
    representation, or testimony before a tribunal; and the payment of
    awards of a tribunal; and

    [[Page 64679]]

    (4) Other transactions otherwise prohibited by this part which are
    necessary to permit implementation of the foregoing awards, decisions,
    orders, or agreements.
    (b) Specific licenses may be issued on a case-by-case basis to
    authorize payment of costs related to the storage or maintenance of
    goods in which the Government of Iran has title, and to authorize the
    transfer of title to such goods, provided that such goods are in the
    United States and that such goods are the subject of a proceeding
    pending before a tribunal.
    (c)(1) All transactions are authorized with respect to the
    importation of Iranian-origin goods and services necessary to the
    initiation and conduct of legal proceedings, in the United States or
    abroad, including administrative, judicial, and arbitral proceedings
    and proceedings before tribunals.
    (2) Specific licenses may be issued on a case-by-case basis to
    authorize the exportation to Iran or the Government of Iran of goods,
    and of services not otherwise authorized by Sec. 560.525, necessary to
    the initiation and conduct of legal proceedings, in the United States
    or abroad, including administrative, judicial, and arbitral proceedings
    and proceedings before tribunals, except to the extent that the
    exportation is also subject to export licensing application
    requirements of another agency of the United States Government and the
    granting of such a license by that agency would be prohibited by law.
    (3) Representation of United States persons or of third country
    persons in legal proceedings, in the United States or abroad, including
    administrative, judicial, and arbitral proceedings and proceedings
    before tribunals, against Iran or the Government of Iran is not
    prohibited by this part. The exportation of certain legal services to a
    person in Iran or the Government of Iran is authorized in Sec.
    560.525.

    Note to paragraph (c)(3) of Sec. 560.510: The entry of any
    judgment or order, or entry into a settlement agreement, that
    effects a transfer of blocked property or interests in property, or
    the execution of any judgment against property or interests in
    property blocked pursuant to Sec. 560.211 is prohibited, unless
    specifically licensed in accordance with Sec. 560.212(e). See Sec.
    560.525(c).

    (d) The following are authorized:
    (1) All transactions related to payment of awards of the Iran-
    United States Claims Tribunal in The Hague against Iran.
    (2) All transactions necessary to the payment and implementation of
    awards (other than exports or reexports subject to export license
    application requirements of other agencies of the United States
    Government) in a legal proceeding to which the United States Government
    is a party, or to payments pursuant to settlement agreements entered
    into by the United States Government in such a legal proceeding.


    Sec. 560.511 [Reserved]


    Sec. 560.512 Iranian Government missions in the United States.

    (a) The importation of goods or services into the United States by,
    and the provision of goods or services in the United States to, the
    diplomatic missions of the Government of Iran to international
    organizations in the United States, and the Iranian Interests Section
    of the Embassy of Pakistan (or any successor protecting power) in the
    United States are authorized, provided that:
    (1) The goods or services are for the conduct of the official
    business of the missions or the Iranian Interests Section, or for
    personal use of the employees of the missions or the Iranian Interests
    Section, and are not for resale;
    (2) The transaction does not involve the purchase, sale, financing,
    or refinancing of real property;
    (3) The transaction is not otherwise prohibited by law; and
    (4) The transaction is conducted through an account at a U.S.
    financial institution specifically licensed by the Office of Foreign
    Assets Control.

    Note to paragraph (a)(4) of Sec. 560.512: U.S. financial
    institutions are required to obtain specific licenses to operate
    accounts for, or extend credit to, the diplomatic missions of the
    Government of Iran to international organizations in the United
    States, or the Iranian Interests Section of the Embassy of Pakistan
    (or any successor protecting power) in the United States.

    (b) The importation of goods or services into the United States by,
    and the provision of goods or services in the United States to, the
    employees of the diplomatic missions of the Government of Iran to
    international organizations in the United States, and the employees of
    the Iranian Interests Section of the Embassy of Pakistan (or any
    successor protecting power) in the United States, are authorized,
    provided that:
    (1) The goods or services are for personal use of the employees of
    the missions or the Iranian Interests Section, and are not for resale;
    and
    (2) The transaction is not otherwise prohibited by law.


    Sec. 560.513-560.515 [Reserved]


    Sec. 560.516 Transfers of funds involving Iran.

    (a) United States depository institutions are authorized to process
    transfers of funds to or from Iran, or for the direct or indirect
    benefit of persons in Iran or the Government of Iran, if the transfer
    arises from, and is ordinarily incident and necessary to give effect
    to, an underlying transaction that has been authorized by a specific or
    general license issued pursuant to, or set forth in, this part and does
    not involve debiting or crediting an Iranian account.
    (b) United States registered brokers or dealers in securities are
    authorized to process transfers of funds to or from Iran, or for the
    direct or indirect benefit of persons in Iran or the Government of
    Iran, if the transfer arises from, and is ordinarily incident and
    necessary to give effect to, an underlying transaction that has been
    authorized by a specific or general license issued pursuant to, or set
    forth in, this part and does not involve debiting or crediting an
    Iranian account.


    Sec. 560.517 Exportation of services: Iranian accounts at United
    States depository institutions or United States registered brokers or
    dealers in securities.

    (a) United States depository institutions are authorized to provide
    and be compensated for the following services and incidental
    transactions with respect to Iranian accounts other than blocked
    accounts, as defined in Sec. 560.322:
    (1) The maintenance of Iranian accounts other than blocked
    accounts, including the payment of interest and the debiting of service
    charges; and
    (2) At the request of the account party, who may not be the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211, the closing of Iranian accounts other than blocked
    accounts and the lump sum transfer only to the account party of all
    remaining funds and other assets in the account.
    (b) United States registered brokers or dealers in securities are
    authorized to provide and be compensated for the following services and
    incidental transactions with respect to Iranian accounts other than
    blocked accounts, as defined in Sec. 560.322:
    (1) The limited maintenance of an Iranian account other than a
    blocked account, including only the payment into such account of
    interest, cash dividends, and stock dividends; the debiting of service
    charges; and the execution of stock splits and dividend reinvestment
    plans; and

    [[Page 64680]]

    (2) At the request of the account party, who may not be the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211, the closing of Iranian accounts other than blocked
    accounts through the one-time liquidation of all assets in the account
    at fair market value and the lump sum transfer only to the account
    party of all proceeds derived therefrom and all remaining funds in the
    account.

    Note to paragraphs (a) and (b) of Sec. 560.517: See Sec.
    560.547, which authorizes U.S. financial institutions to debit
    blocked accounts for normal service charges, and Sec. 560.213,
    concerning the obligation to hold blocked funds in interest-bearing
    accounts.

    (c) Specific licenses may be issued with respect to the operation
    of Iranian accounts that constitute accounts of:
    (1) Foreign government missions and their personnel in Iran; or
    (2) Diplomatic missions of the Government of Iran to international
    organizations in the United States or the Iranian Interests Section of
    the Embassy of Pakistan in the United States.


    Sec. 560.518 Transactions in Iranian-origin and Iranian government
    property.

    Except for transactions involving the Government of Iran, an
    Iranian financial institution, or any other person whose property and
    interests in property are blocked pursuant to Sec. 560.211, and
    provided that paragraph (a) of this section does not affect the status
    of property blocked pursuant to part 535 or this part or detained or
    seized, or subject to detention or seizure, pursuant to this part, the
    following transactions are authorized:
    (a) All domestic transactions with respect to Iranian-origin goods
    located in the United States other than goods blocked pursuant to Sec.
    560.211.
    (b) Transactions by a United States person with third-country
    nationals incidental to the storage and maintenance in third countries
    of Iranian-origin goods owned prior to May 7, 1995, by that United
    States person or acquired thereafter by that United States person
    consistent with the provisions of this part;
    (c) Exportation of Iranian-origin household and personal effects
    from the United States incident to the relocation of United States
    persons outside the United States; and
    (d) The use or disposition by a United States person of Iranian-
    origin household and personal effects that are located outside the
    United States and that have been acquired by the United States person
    in transactions not prohibited by part 535 or this part.


    Sec. 560.519 Journalistic activities and establishment of news
    bureaus in Iran.

    (a) Subject to the limitations and conditions set forth in
    paragraph (c) of this section, news reporting organizations that are
    United States persons, and individuals who are United States persons
    regularly employed by a news reporting organization either as
    journalists (including photojournalists) or as supporting broadcast or
    technical personnel, are authorized to engage in the following
    transactions in Iran to the extent such transactions are ordinarily
    incident to their journalistic activities in Iran:
    (1) Hiring and compensating support staff in Iran (e.g., stringers,
    translators, interpreters, camera operators, technical experts,
    freelance producers, or drivers), or persons to handle logistics, or
    other office personnel as needed;
    (2) Leasing or renting office space;
    (3) Purchasing, leasing, or renting Iranian-origin goods and
    services (e.g., mobile phones and related air time), selling such goods
    when no longer needed to persons other than the Government of Iran, or
    importing them into the United States;
    (4) Renting and using telecommunications facilities in Iran and
    paying fees related to the dissemination of information and
    transmission of news feeds (e.g., fees for satellite uplink facilities,
    live news feeds, taxes);
    (5) Exporting and reexporting to Iran, and subsequently reexporting
    from Iran, equipment necessary for and ordinarily incident to
    journalistic activities, provided such equipment is designated as EAR99
    under the Export Administration Regulations, 15 CFR parts 730 through
    774 (the ``EAR''), and further provided that such equipment is
    reexported from Iran to the United States or a third country when no
    longer needed for journalistic activities in Iran; and
    (6) Paying for all expenses ordinarily incident to journalistic
    activities, including sales or employment taxes to the Government of
    Iran.
    (b) Subject to the limitations and conditions set forth in
    paragraph (c) of this section, news reporting organizations that are
    United States persons are authorized to establish and operate news
    bureaus in Iran and to engage in the transactions set forth in
    paragraph (a) of this section to the extent such transactions are
    ordinarily incident to the establishment and operation of a news bureau
    in Iran.
    (c) The authorizations set forth in paragraphs (a) and (b) of this
    section are subject to the following limitations and conditions:
    (1) No goods, technology, or software listed on the Commerce
    Control List in the EAR, 15 CFR part 774, supplement No. 1 (CCL), or
    that requires a license under part 744 of the EAR, or controlled by the
    United States Department of State under the International Traffic in
    Arms Regulations, 22 CFR parts 120 through 130, may be exported or
    reexported to Iran without separate authorization from the Office of
    Foreign Assets Control.

    Note to paragraph (c)(1) of Sec. 560.519: The Commerce Control
    List in the EAR, 15 CFR part 774, supplement No. 1, includes items
    such as many laptop computers, personal computers, cell phones,
    personal digital assistants and other wireless handheld devices/
    blackberries, and other similar items. The exportation or
    reexportation of these items to Iran, even on a temporary basis, is
    prohibited, unless specifically authorized in a license issued
    pursuant to this part in a manner consistent with the Iran-Iraq Arms
    Nonproliferation Act of 1992 and other relevant law.

    (2) Any United States person exporting or reexporting to Iran EAR99
    equipment pursuant to paragraphs (a) or (b) of this section:
    (i) Must maintain ownership and control of such equipment at all
    times while it is in Iran; and
    (ii) Must submit a report to the Licensing Division, Office of
    Foreign Assets Control, U.S. Department of the Treasury, 1500
    Pennsylvania Avenue NW., Annex, Washington, DC 20220 within 10 business
    days of the export or reexport specifying the items exported or
    reexported and confirming that they are EAR99, and another report
    confirming that such items have been reexported from Iran to the United
    States or a third country within 10 business days of the date of
    reexportation from Iran.
    (3) This section does not authorize the exportation or
    reexportation to Iran of any goods, technology, or services that are
    not necessary and ordinarily incident to journalistic activities in
    Iran or to the establishment and operation of a news bureau in Iran.
    (d) For the purposes of this section, the term news reporting
    organization means an entity whose primary purpose is the gathering and
    dissemination of news to the general public.

    Note to Sec. 560.519: For a specific licensing policy
    governing the establishment and operation of news bureaus in the
    United States by Iranian news organizations, see Sec. 560.549.


    [[Page 64681]]




    Sec. 560.520 [Reserved]


    Sec. 560.521 Diplomatic pouches.

    The following transactions are authorized:
    (a) The importation into the United States from Iran, or the
    exportation from the United States to Iran, of diplomatic pouches and
    their contents; and
    (b) The exportation, reexportation, sale, or supply, directly or
    indirectly, from the United States or by a U.S. person, wherever
    located, of any goods or technology to a third-country government, or
    to its contractors or agents, for shipment to Iran via a diplomatic
    pouch. To the extent necessary, this section also authorizes the
    shipment of such goods or technology by the third-country government to
    Iran via a diplomatic pouch.

    Note to paragraph (b) of Sec. 560.521: The exportation or
    reexportation of certain U.S.-origin goods or technology to a third-
    country government, or to its contractors or agents, may require
    authorization by the U.S. Department of Commerce under the Export
    Administration Regulations (15 CFR parts 730 through 774).

    Sec. 560.522 Allowable payments for overflights of Iranian airspace.

    Payments to Iran of charges for services rendered by the Government
    of Iran in connection with the overflight of Iran or emergency landing
    in Iran of aircraft owned by a United States person or registered in
    the United States are authorized.


    Sec. 560.523 Exportation of equipment and services relating to
    information and informational materials.

    Specific licenses may be issued on a case-by-case basis for the
    exportation of equipment and services necessary for the establishment
    of news wire feeds or other transmissions of information and
    informational materials.


    Sec. 560.524 Household goods and personal effects.

    (a) The exportation from the United States to Iran of household and
    personal effects, including baggage and articles for family use, of
    persons departing the United States to relocate in Iran is authorized
    provided the articles included in such effects have been actually used
    by such persons or by family members accompanying them, are not
    intended for any other person or for sale, and are not otherwise
    prohibited from exportation. See also Sec. 560.518(c).
    (b) The importation of Iranian-origin household and personal
    effects, including baggage and articles for family use, of persons
    arriving in the United States is authorized; to qualify, articles
    included in such effects must have been actually used abroad by such
    persons or by other family members from the same foreign household,
    must not be intended for any other person or for sale, and must not be
    otherwise prohibited from importation. For purposes of this paragraph,
    household and personal effects include all articles meeting the
    criteria stated in this paragraph regardless of the time elapsed since
    the importer's arrival in the United States from Iran.


    Sec. 560.525 Provision of certain legal services.

    (a) The provision of the following legal services to or on behalf
    of the Government of Iran, an Iranian financial institution, or any
    other person whose property and interests in property are blocked
    pursuant to Sec. 560.211, or to or on behalf of a person in Iran, or
    in circumstances in which the benefit is otherwise received in Iran is
    authorized, provided that receipt of payment of professional fees and
    reimbursement of incurred expenses are authorized by or pursuant to
    paragraph (d) of this section or otherwise authorized pursuant to this
    part:
    (1) Provision of legal advice and counseling on the requirements of
    and compliance with the laws of the United States or any jurisdiction
    within the United States, provided that such advice and counseling is
    not provided to facilitate transactions in violation of this part;
    (2) Representation of persons named as defendants in or otherwise
    made a party to domestic United States legal, arbitration, or
    administrative proceedings;
    (3) Initiation and conduct of domestic United States legal,
    arbitration, or administrative proceedings;
    (4) Representation of persons before any federal or state agency
    with respect to the imposition, administration, or enforcement of
    United States sanctions against Iran;
    (5) Initiation and conduct of legal proceedings, in the United
    States or abroad, including administrative, judicial, and arbitral
    proceedings and proceedings before international tribunals (including
    the Iran-United States Claims Tribunal in The Hague and the
    International Court of Justice):
    (i) To resolve disputes between the Government of Iran or an
    Iranian national and the United States or a United States national;
    (ii) Where the proceeding is contemplated under an international
    agreement; or
    (iii) Where the proceeding involves the enforcement of awards,
    decisions, or orders resulting from legal proceedings within the scope
    of paragraph (a)(5)(i) or (a)(5)(ii) of this section, provided that any
    transaction, unrelated to the provision of legal services or the
    payment therefor, that is necessary or related to the execution of an
    award, decision, or order resulting from such legal proceeding, or
    otherwise necessary for the conduct of such proceeding, and which would
    otherwise be prohibited by this part requires a specific license in
    accordance with Sec. Sec. 560.510 and 560.801;
    (6) Provision of legal advice and counseling in connection with
    settlement or other resolution of matters described in paragraph (a)(5)
    of this section; and
    (7) Provision of legal services in any other context in which
    prevailing United States law requires access to legal counsel at public
    expense.
    (b) The provision of any other legal services to the Government of
    Iran, an Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to Sec.
    560.211, or to or on behalf of a person in Iran, or in circumstances in
    which the benefit is otherwise received in Iran, not otherwise
    authorized in this part, requires the issuance of a specific license.
    (c) Entry into a settlement agreement or the enforcement of any
    lien, judgment, arbitral award, decree, or other order through
    execution, garnishment, or other judicial process purporting to
    transfer or otherwise alter or affect property or interests in property
    blocked pursuant to Sec. 560.211 is prohibited unless specifically
    licensed in accordance with Sec. 560.212(e).
    (d)(1) All receipts of payment of professional fees and
    reimbursement of incurred expenses for the provision of legal services
    authorized pursuant to paragraph (a) of this section to or on behalf of
    the Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211 must be specifically licensed or otherwise authorized
    pursuant to Sec. 560.553 of this part.
    (2) All receipts of payment of professional fees and reimbursement
    of incurred expenses for the provision of legal services authorized
    pursuant to paragraph (a) of this section to or on behalf of a person
    in Iran, or in circumstances in which the benefit is otherwise received
    in Iran, other than those described in paragraph (d)(1) of

    [[Page 64682]]

    this section, are authorized, except that nothing in this section
    authorizes the debiting of any blocked account or the transfer of any
    blocked property.


    Sec. 560.526 [Reserved]


    Sec. 560.527 Rescheduling existing loans.

    Specific licenses may be issued on a case-by-case basis for
    rescheduling loans or otherwise extending the maturities of existing
    loans, and for charging fees or interest at commercially reasonable
    rates, in connection therewith, provided that no new funds or credits
    are thereby transferred or extended to Iran or the Government of Iran,
    an Iranian financial institution, or any other person whose property
    and interests in property are blocked pursuant to Sec. 560.211.


    Sec. 560.528 Aircraft safety.

    Specific licenses may be issued on a case-by-case basis for the
    exportation or reexportation of goods, services, and technology to
    insure the safety of civil aviation and safe operation of U.S.-origin
    commercial passenger aircraft.


    Sec. 560.529 Bunkering and emergency repairs.

    (a) Except as provided in paragraph (b) of this section, goods or
    services provided in the United States to a non-Iranian carrier
    transporting passengers or goods to or from Iran are permissible if
    they are:
    (1) Bunkers or bunkering services;
    (2) Supplied or performed in the course of emergency repairs; or
    (3) Supplied or performed under circumstances which could not be
    anticipated prior to the carrier's departure for the United States.
    (b) This section does not authorize the provision of goods or
    services in connection with the transport of any goods to or from the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211.


    Sec. 560.530 Commercial sales, exportation, and reexportation of
    agricultural commodities, medicine, and medical devices.

    (a)(1) One-year license requirement. The exportation or
    reexportation of the excluded food items specified in paragraph
    (a)(2)(iii) of this section, agricultural commodities that do not fall
    within the definition of food set forth in paragraph (a)(2)(ii) of this
    section, food (as defined in paragraph (a)(2)(ii) of this section)
    intended for military or law enforcement purchasers or importers, the
    excluded medicines specified in paragraph (a)(3)(iii) of this section,
    medicine (as defined in paragraph (e)(2) of this section) intended for
    military or law enforcement purchasers or importers, medical devices
    (as defined in paragraph (e)(3) of this section) other than basic
    medical supplies (as defined in paragraph (a)(3)(ii) of this section),
    or basic medical supplies (as defined in paragraph (a)(3)(ii) of this
    section) intended for military or law enforcement purchasers or
    importers (together, ``agricultural commodities, medicine and medical
    devices that are not covered by the general licenses in paragraphs
    (a)(2) and (a)(3) of this section'') to the Government of Iran, to any
    individual or entity in Iran, or to persons in third countries
    purchasing specifically for resale to any of the foregoing, shall only
    be made pursuant to a one-year specific license issued by the Office of
    Foreign Assets Control for contracts entered into during the one year
    period of the license and shipped within the 12-month period beginning
    on the date of the signing of the contract. No specific license will be
    granted for the exportation or reexportation of the items set forth
    above to any entity or individual in Iran promoting international
    terrorism, to any narcotics trafficking entity designated pursuant to
    Executive Order 12978 of October 21, 1995 (60 FR 54579, October 24,
    1995) or the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-
    1908), or to any foreign organization, group, or persons subject to any
    restriction for its or their involvement in weapons of mass destruction
    or missile proliferation. Executory contracts entered into pursuant to
    paragraph (b)(2) of this section prior to the issuance of the one-year
    license described in this paragraph shall be deemed to have been signed
    on the date of issuance of that one-year license (and, therefore, the
    exporter is authorized to make shipments under that contract within the
    12-month period beginning on the date of issuance of the one-year
    license).
    (2)(i) General license for the exportation or reexportation of
    food. Except as provided in paragraphs (a)(2)(iii) and (a)(2)(iv) of
    this section, the exportation or reexportation of food (including bulk
    agricultural commodities listed in appendix B to this part) to the
    Government of Iran, to any individual or entity in Iran, or to persons
    in third countries purchasing specifically for resale to any of the
    foregoing, and the conduct of related transactions, including, but not
    limited to, the making of shipping and cargo inspection arrangements,
    the obtaining of insurance, the arrangement of financing and payment,
    shipping of the goods, receipt of payment, and the entry into contracts
    (including executory contracts), are hereby authorized, provided that,
    unless otherwise authorized by specific license, payment terms and
    financing for sales pursuant to this general license are limited to,
    and consistent with, those authorized by Sec. 560.532 of this part;
    and further provided that all such exports or reexports are shipped
    within the 12-month period beginning on the date of the signing of the
    contract for export or reexport.
    (ii) Definition of Food. For purposes of this general license, the
    term food means items that are intended to be consumed by and provide
    nutrition to humans or animals in Iran, including vitamins and
    minerals, food additives and supplements, and bottled drinking water,
    and seeds that germinate into items that are intended to be consumed by
    and provide nutrition to humans or animals in Iran. For purposes of
    this general license, the term food does not include alcoholic
    beverages, cigarettes, gum, or fertilizer.
    (iii) Excluded food items. Paragraph (a)(2)(i) of this section does
    not authorize the exportation or reexportation of the following food
    items: castor beans, castor bean seeds, certified pathogen-free eggs
    (unfertilized or fertilized), dried egg albumin, live animals, Rosary/
    Jequirity peas, nonfood-grade gelatin powder, and peptones and their
    derivatives.
    (iv) Excluded persons. Paragraph (a)(2)(i) of this section does not
    authorize the exportation or reexportation of food to military or law
    enforcement purchasers or importers.

    Note to paragraph (a)(2) of Sec. 560.530: Consistent with
    section 906(a)(1) of the Trade Sanctions Reform and Export
    Enhancement Act of 2000 (22 U.S.C. 7205), each year by the
    anniversary of its effective date on October 12, 2011, the Office of
    Foreign Assets Control will determine whether to revoke this general
    license. Unless revoked, the general license will remain in effect.

    (3)(i) General license for the exportation or reexportation of
    medicine and basic medical supplies. Except as provided in paragraphs
    (a)(3)(iii) and (a)(3)(iv) of this section, the exportation or
    reexportation of medicine (as defined in paragraph (e)(2) of this
    section) and basic medical supplies (as defined in paragraph (a)(3)(ii)
    of this section) to the Government of Iran, to any individual or entity
    in Iran, or to persons in third countries purchasing specifically for
    resale to any of the foregoing, and the conduct of related
    transactions, including, but not limited to, the

    [[Page 64683]]

    making of shipping and cargo inspection arrangements, the obtaining of
    insurance, the arrangement of financing and payment, shipping of the
    goods, receipt of payment, and the entry into contracts (including
    executory contracts), are hereby authorized, provided that unless
    otherwise authorized by specific license, payment terms and financing
    for sales pursuant to this general license are limited to, and
    consistent with, those authorized by Sec. 560.532 of this part; and
    further provided that all such exports or reexports are shipped within
    the 12-month period beginning on the date of the signing of the
    contract for export or reexport.
    (ii) Definition of basic medical supplies. For purposes of this
    general license, the term basic medical supplies means those medical
    devices, as defined in paragraph (e)(3) of this section, that are
    included on the List of Basic Medical Supplies on the Office of Foreign
    Assets Control's Web site (www.treasury.gov/ofac) on the Iran Sanctions
    page, but does not include replacement parts.

    Note to paragraph (a)(3)(ii) of Sec. 560.530: The List of Basic
    Medical Supplies is maintained on the Office of Foreign Assets
    Control's Web site (www.treasury.gov/ofac) on the Iran Sanctions
    page. The list also will be published in the Federal Register, as
    will any changes to the list. The List of Basic Medical Supplies
    generally contains those medical devices (excluding replacement
    parts) for which OFAC previously did not require an Official
    Commodity Classification of EAR99 issued by the Department of
    Commerce, Bureau of Industry and Security, to be submitted with a
    specific license application and which are now generally licensed.

    (iii) Excluded medicines. Paragraph (a)(3)(i) of this section does
    not authorize the exportation or reexportation of the following
    medicines: non-NSAID analgesics, cholinergics, anticholinergics,
    opioids, narcotics, benzodiazapenes, and bioactive peptides.
    (iv) Excluded persons. Paragraph (a)(3)(i) of this section does not
    authorize the exportation or reexportation of medicine or basic medical
    supplies to military or law enforcement purchasers or importers.

    Note to paragraph (a)(3) of Sec. 560.530: Consistent with
    section 906(a)(1) of the Trade Sanctions Reform and Export
    Enhancement Act of 2000 (22 U.S.C. 7205), each year by the
    anniversary of its effective date on October 22, 2012, the Office of
    Foreign Assets Control will determine whether to revoke this general
    license. Unless revoked, the general license will remain in effect.

    (b) General license for arrangement of exportation and
    reexportation of covered products that require a specific license. (1)
    With respect to sales pursuant to paragraph (a)(1) of this section, the
    making of shipping arrangements, cargo inspections, obtaining of
    insurance, and arrangement of financing (consistent with Sec. 560.532)
    for the exportation or reexportation of agricultural commodities,
    medicine and medical devices not covered by the general licenses in
    paragraphs (a)(2) and (a)(3) of this section to the Government of Iran,
    to any individual or entity in Iran, or to persons in third countries
    purchasing specifically for resale to any of the foregoing, are
    authorized.
    (2) Entry into executory contracts (including executory pro forma
    invoices, agreements in principle, or executory offers capable of
    acceptance such as bids in response to public tenders) for the
    exportation or reexportation of agricultural commodities, medicine and
    medical devices not covered by the general licenses in paragraphs
    (a)(2) and (a)(3) of this section to the Government of Iran, to any
    individual or entity in Iran, or to persons in third countries
    purchasing specifically for resale to any of the foregoing, is
    authorized, provided that the performance of an executory contract is
    expressly made contingent upon the prior issuance of the one-year
    specific license described in paragraph (a)(1) of this section.
    (c) Instructions for obtaining one-year licenses. In order to
    obtain the one-year specific license described in paragraph (a)(1) of
    this section, the exporter must provide to the Office of Foreign Assets
    Control:
    (1) The applicant's full legal name (and, if the applicant is a
    business entity, the state or jurisdiction of incorporation and
    principal place of business);
    (2) The applicant's mailing and street address (and, so that OFAC
    may reach a responsible point of contact, the applicant should also
    include the name of the individual(s) responsible for the application
    and related commercial transactions, along with their telephone and fax
    numbers and, if available, email addresses);
    (3) The names, mailing addresses, and, if available, fax and
    telephone numbers and email addresses of all parties with an interest
    in the transaction. If the goods are being exported or reexported to a
    purchasing agent in Iran, the exporter must identify the agent's
    principals at the wholesale level for whom the purchase is being made.
    If the goods are being exported or reexported to an individual, the
    exporter must identify any organizations or entities with which the
    individual is affiliated that have an interest in the transaction;
    (4) A description of all items to be exported or reexported
    pursuant to the requested one-year license, including a statement that
    the item is designated as EAR99 and, if necessary, documentation
    sufficient to verify that the items to be exported or reexported are
    designated as EAR99 and do not fall within any of the limitations
    contained in paragraph (d) of this section; and
    (5) An Official Commodity Classification of EAR99 issued by the
    Department of Commerce, Bureau of Industry and Security (``BIS''),
    certifying that the product is designated as EAR99, is required to be
    submitted to OFAC with the request for a license authorizing the
    exportation or reexportation of all fertilizers, live horses, western
    red cedar, and medical devices other than basic medical supplies. See
    15 CFR 745.3 for instructions for obtaining an Official Commodity
    Classification of EAR99 from BIS.
    (d) Limitations. (1) Nothing in this section or in any general or
    specific license set forth in or issued pursuant to paragraph (a) of
    this section relieves the exporter from compliance with the export
    license application requirements of another Federal agency.
    (2) Nothing in this section or in any general or specific license
    set forth in or issued pursuant to paragraph (a) of this section
    authorizes the exportation or reexportation of any agricultural
    commodity, medicine, or medical device controlled on the United States
    Munitions List established under section 38 of the Arms Export Control
    Act (22 U.S.C. 2778); controlled on any control list established under
    the Export Administration Act of 1979 or any successor statute (50
    U.S.C. App. 2401 et seq.); or used to facilitate the development or
    production of a chemical or biological weapon or weapon of mass
    destruction.
    (3) Nothing in this section or in any general or specific license
    set forth in or issued pursuant to paragraph (a) of this section
    affects prohibitions on the sale or supply of U.S. technology or
    software used to manufacture agricultural commodities, medicine, or
    medical devices, such as technology to design or produce
    biotechnological items or medical devices.
    (4) Nothing in this section or in any general or specific license
    set forth in or issued pursuant to paragraph (a) of this section
    affects U.S. nonproliferation export controls, including the end-user
    and end-use controls maintained under Part 744 of the Export
    Administration Regulations, 15 CFR part 744.

    [[Page 64684]]

    (5) Nothing in this section authorizes any transaction or dealing
    with a person whose property and interests in property are blocked
    under, or who is designated or otherwise subject to any sanctions
    under, the terrorism, proliferation of weapons of mass destruction, or
    narcotics trafficking programs administered by OFAC, 31 CFR parts 536,
    544, 594, 595, 597, and 598, or with any foreign organization, group,
    or person subject to any restriction for its involvement in weapons of
    mass destruction or missile proliferation, or involving property
    blocked pursuant to this chapter or any other activity prohibited by
    this chapter not otherwise authorized in or pursuant to this part.
    (e) Covered items. For the purposes of this part, agricultural
    commodities, medicine, and medical devices are defined below.
    (1) Agricultural commodities. For the purposes of this part,
    agricultural commodities are:
    (i) Products not listed on the Commerce Control List in the Export
    Administration Regulations, 15 CFR part 774, supplement no. 1, that
    fall within the term ``agricultural commodity'' as defined in section
    102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602); and
    (ii) Products not listed on the Commerce Control List in the Export
    Administration Regulations, 15 CFR part 774, supplement no. 1, that are
    intended for ultimate use in Iran as:
    (A) Food for humans (including raw, processed, and packaged foods;
    live animals; vitamins and minerals; food additives or supplements; and
    bottled drinking water) or animals (including animal feeds);
    (B) Seeds for food crops;
    (C) Fertilizers or organic fertilizers; or
    (D) Reproductive materials (such as live animals, fertilized eggs,
    embryos, and semen) for the production of food animals.
    (2) Medicine. For the purposes of this part, the term medicine has
    the same meaning given the term ``drug'' in section 201 of the Federal
    Food, Drug, and Cosmetic Act (21 U.S.C. 321) but does not include any
    item listed on the Commerce Control List in the Export Administration
    Regulations, 15 CFR part 774, supplement no. 1 (excluding items
    classified as EAR99).

    Note to Sec. 560.530(e)(2): The Department of Commerce's Bureau
    of Industry and Security provides a list on its Web site of
    medicines that are not designated as EAR99 and therefore not
    eligible for any general or specific license under this section.

    (3) Medical device. For the purposes of this part, the term medical
    device has the meaning given the term ``device'' in section 201 of the
    Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321) but does not
    include any item listed on the Commerce Control List in the Export
    Administration Regulations, 15 CFR part 774, supplement no. 1
    (excluding items designated as EAR99).
    (f) Excluded items. (1) For the purposes of this part, agricultural
    commodities do not include furniture made from wood; clothing
    manufactured from plant or animal materials; agricultural equipment
    (whether hand tools or motorized equipment); pesticides, insecticides,
    or herbicides; or cosmetics (unless derived entirely from plant
    materials).
    (2) For the purposes of this part, the term medicine does not
    include cosmetics.


    Sec. 560.531 [Reserved]


    Sec. 560.532 Payment for and financing of exports and reexports of
    agricultural commodities, medicine, and medical devices.

    (a) General license for payment terms. The following payment terms
    are authorized for sales pursuant to Sec. 560.530(a):
    (1) Payment of cash in advance;
    (2) Sales on open account, provided that the account receivable may
    not be transferred by the person extending the credit;
    (3) Financing by third-country financial institutions that are not
    United States persons, Iranian financial institutions, or the
    Government of Iran. Such financing may be confirmed or advised by U.S.
    financial institutions; or
    (4) Letter of credit issued by an Iranian financial institution
    whose property and interests in property are blocked solely pursuant to
    this part. Such letter of credit must be initially advised, confirmed
    or otherwise dealt in by a third-country financial institution that is
    not a United States person, an Iranian financial institution, or the
    Government of Iran before it is advised, confirmed or dealt in by a
    U.S. financial institution.
    (b) Specific licenses for alternate payment terms. Specific
    licenses may be issued on a case-by-case basis for payment terms and
    trade financing not authorized by the general license in paragraph (a)
    of this section for sales pursuant to Sec. 560.530(a).
    (c)(1) No debits to blocked accounts. Nothing in this section
    authorizes payment terms or trade financing involving a debit to an
    account blocked pursuant to this part.
    (2) No debits or credits to Iranian accounts on the books of U.S.
    depository institutions. Nothing in this section authorizes payment
    terms or trade financing involving debits or credits to Iranian
    accounts, as defined in Sec. 560.320.
    (d) Notwithstanding any other provision of this part, no commercial
    exportation to Iran may be made with United States Government
    assistance, including United States foreign assistance, United States
    export assistance, and any United States credit or guarantees absent a
    Presidential waiver.


    Sec. 560.533 Brokering sales of agricultural commodities, medicine,
    and medical devices.

    (a) General license for brokering sales by U.S. persons. United
    States persons are authorized to provide brokerage services on behalf
    of U.S. persons for the sale and exportation or reexportation by United
    States persons of agricultural commodities, medicine, and medical
    devices, provided that the sale and exportation or reexportation is
    authorized, as applicable, by a one-year specific license issued
    pursuant to paragraph (a)(1) of Sec. 560.530 or by one of the general
    licenses set forth in paragraphs (a)(2) and (a)(3) of Sec. 560.530.
    (b) Specific licensing for brokering sales by non-U.S. persons of
    bulk agricultural commodities. Specific licenses may be issued on a
    case-by-case basis to permit United States persons to provide brokerage
    services on behalf of non-United States, non-Iranian persons for the
    sale and exportation or reexportation of bulk agricultural commodities
    to the Government of Iran, entities in Iran or individuals in Iran.
    Specific licenses issued pursuant to this section will authorize the
    brokering only of sales that:
    (1) Are limited to the bulk agricultural commodities listed in
    appendix B to this part 560; and
    (2) Are to purchasers permitted pursuant to Sec. 560.530.

    Note to paragraph (b)(2) of Sec. 560.533: Requests for specific
    licenses to provide brokerage services under this paragraph must
    include all of the information described in Sec. 560.530(c).

    (c) No debits or credits to Iranian accounts on the books of U.S.
    depository institutions. Payment for any brokerage fee earned pursuant
    to this section may not involve debits or credits to Iranian accounts,
    as defined in Sec. 560.320.
    (d) Recordkeeping and reporting requirements. Attention is drawn to
    the recordkeeping, retention, and reporting requirements of Sec. Sec.
    501.601 and 501.602 of this chapter.

    [[Page 64685]]

    Sec. Sec. 560.534-560.537 [Reserved]


    Sec. 560.538 Authorized transactions necessary and ordinarily
    incident to publishing.

    (a) To the extent that such activities are not exempt from this
    part, and subject to the restrictions set forth in paragraphs (b)
    through (d) of this section, U.S. persons are authorized to engage in
    all transactions necessary and ordinarily incident to the publishing
    and marketing of manuscripts, books, journals, and newspapers in paper
    or electronic format (collectively, ``written publications''). This
    section does not apply if the parties to the transactions described in
    this paragraph include the Government of Iran. For the purposes of this
    section, the term ``Government of Iran'' includes the state and the
    Government of Iran, as well as any political subdivision, agency, or
    instrumentality thereof, which includes the Central Bank of Iran, and
    any person acting or purporting to act directly or indirectly on behalf
    of any of the foregoing with respect to the transactions described in
    this paragraph. For the purposes of this section, the term ``Government
    of Iran'' does not include any academic and research institutions and
    their personnel. Pursuant to this section, the following activities are
    authorized, provided that U.S. persons ensure that they are not
    engaging, without separate authorization, in the activities identified
    in paragraphs (b) through (d) of this section:
    (1) Commissioning and making advance payments for identifiable
    written publications not yet in existence, to the extent consistent
    with industry practice;
    (2) Collaborating on the creation and enhancement of written
    publications;
    (3)(i) Augmenting written publications through the addition of
    items such as photographs, artwork, translation, explanatory text, and,
    for a written publication in electronic format, the addition of
    embedded software necessary for reading, browsing, navigating, or
    searching the written publication; and
    (ii) Exporting embedded software necessary for reading, browsing,
    navigating, or searching a written publication in electronic format,
    provided that the software is designated as ``EAR99'' under the Export
    Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''),
    or is not subject to the EAR;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a
    written publication; and
    (7) Other transactions necessary and ordinarily incident to the
    publishing and marketing of written publications as described in this
    paragraph (a).
    (b) This section does not authorize transactions involving the
    provision of goods or services not necessary and ordinarily incident to
    the publishing and marketing of written publications as described in
    paragraph (a) of this section. For example, this section does not
    authorize U.S. persons:
    (1) To provide or receive individualized or customized services
    (including, but not limited to, accounting, legal, design, or
    consulting services), other than those necessary and ordinarily
    incident to the publishing and marketing of written publications, even
    though such individualized or customized services are delivered through
    the use of information or informational materials;
    (2) To create or undertake for any person a marketing campaign with
    respect to any service or product other than a written publication, or
    to create or undertake a marketing campaign of any kind for the benefit
    of the Government of Iran;
    (3) To engage in the exportation or importation of goods to or from
    Iran other than the exportation of embedded software described in
    paragraph (a)(3)(ii) of this section; or
    (4) To operate a publishing house, sales outlet, or other office in
    Iran.

    Note to paragraph (b) of Sec. 560.538: The importation from
    Iran and the exportation to Iran of information or informational
    materials, as defined in Sec. 560.315, whether commercial or
    otherwise, regardless of format or medium of transmission, are
    exempt from the prohibitions and regulations of this part. See Sec.
    560.210(c).

    (c) This section does not authorize U.S. persons to engage the
    services of publishing houses or translators in Iran unless such
    activity is primarily for the dissemination of written publications in
    Iran.
    (d) This section does not authorize:
    (1) The exportation from or importation into the United States of
    services for the development, production, or design of software;
    (2) Transactions for the development, production, design, or
    marketing of technology specifically controlled by the International
    Traffic in Arms Regulations, 22 CFR parts 120 through 130 (the
    ``ITAR''), the EAR, or the Department of Energy Regulations set forth
    at 10 CFR part 810;
    (3) The exportation of information or technology subject to the
    authorization requirements of 10 CFR part 810, or Restricted Data as
    defined in section 11 y. of the Atomic Energy Act of 1954, as amended,
    or of other information, data, or technology the release of which is
    controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of any item (including information) subject to
    the EAR where a U.S. person knows or has reason to know that the item
    will be used, directly or indirectly, with respect to certain nuclear,
    missile, chemical, or biological weapons or nuclear-maritime end-uses
    as set forth in part 744 of the EAR. In addition, U.S. persons are
    precluded from exporting any item subject to the EAR to certain
    restricted end-users, as set forth in part 744 of the EAR, as well as
    certain persons whose export privileges have been denied pursuant to
    parts 764 or 766 of the EAR, without authorization from the Department
    of Commerce; or
    (5) The exportation of information subject to licensing
    requirements under the ITAR or exchanges of information that are
    subject to regulation by other government agencies.


    Sec. 560.539 Official activities of certain international
    organizations.

    (a) General license. Except as provided in paragraph (b) of this
    section, all transactions otherwise prohibited by this part that are
    for the conduct of the official business of the United Nations, the
    World Bank, the International Monetary Fund, the International Atomic
    Energy Agency, the International Labor Organization, or the World
    Health Organization by employees, contractors, or grantees thereof are
    authorized. Authorized transactions include, but are not limited to:
    (1) The provision of services involving Iran necessary for carrying
    out the official business;
    (2) Purchasing Iranian-origin goods and services for use in
    carrying out the official business;
    (3) Leasing office space and securing related goods and services;
    (4) Funds transfers to or from accounts of the international
    organizations covered in this paragraph, provided that funds transfers
    to or from Iran are not routed through an account of an Iranian bank on
    the books of a U.S. financial institution; and
    (5) The operation of accounts for employees, contractors, and
    grantees located in Iran who are described in this paragraph.
    Transactions conducted through these accounts must be solely for the
    employee's, contractor's, or grantee's personal use and not for any
    commercial purposes in or involving

    [[Page 64686]]

    Iran. Any funds transfers to or from an Iranian bank must be routed
    through a third-country bank that is not a U.S. person.
    (b) Limitations. This section does not authorize:
    (1) The exportation from the United States to Iran of any goods or
    technology listed on the Commerce Control List in the Export
    Administration Regulations, 15 CFR part 774, supplement No. 1 (CCL);
    (2) The reexportation to Iran of any U.S.-origin goods or
    technology listed on the CCL; or
    (3) The exportation or reexportation from the United States or by a
    U.S. person, wherever located, to Iran of any services not necessary
    and ordinarily incident to the official business in Iran. Such
    transactions require separate authorization from OFAC.

    Note to paragraph (b) of Sec. 560.539: The CCL includes items
    such as many laptop computers, personal computers, cell phones,
    personal digital assistants and other wireless handheld devices/
    blackberries, and other similar items. The exportation of these
    items to Iran, even on a temporary basis, is prohibited, unless
    specifically authorized in a license issued pursuant to this part in
    a manner consistent with the Iran-Iraq Arms Nonproliferation Act of
    1992 and other relevant law.


    Note to Sec. 560.539: The general license set forth in this
    section does not relieve any persons authorized thereunder from
    compliance with any other U.S. legal requirements applicable to the
    transactions authorized pursuant to paragraph (a) of this section.

    Sec. 560.540 Exportation of certain services and software incident to
    Internet-based communications.

    (a) To the extent that such transactions are not exempt from the
    prohibitions of this part and subject to the restrictions set forth in
    paragraph (b) of this section, the following transactions are
    authorized:
    (1) The exportation from the United States or by U.S. persons,
    wherever located, to persons in Iran of services incident to the
    exchange of personal communications over the Internet, such as instant
    messaging, chat and email, social networking, sharing of photos and
    movies, web browsing, and blogging, provided that such services are
    publicly available at no cost to the user.
    (2) The exportation from the United States or by U.S. persons,
    wherever located, to persons in Iran of software necessary to enable
    the services described in paragraph (a)(1) of this section, provided
    that such software is designated as EAR99 under the Export
    Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''),
    is not subject to the EAR, or is classified by the U.S. Department of
    Commerce (``Commerce'') as mass market software under export control
    classification number (``ECCN'') 5D992 of the EAR, and provided further
    that such software is publicly available at no cost to the user.
    (b) This section does not authorize:
    (1) The direct or indirect exportation of services or software with
    knowledge or reason to know that such services or software are intended
    for the Government of Iran;
    (2) The direct or indirect exportation of any goods or technology
    listed on the Commerce Control List in the EAR, 15 CFR part 774,
    supplement No. 1 (``CCL''), except for software necessary to enable the
    services described in paragraph (a)(1) of this section that is
    classified by Commerce as mass market software under ECCN 5D992 of the
    EAR;
    (3) The direct or indirect exportation of Internet connectivity
    services or telecommunications transmission facilities (such as
    satellite or terrestrial network connectivity); or
    (4) The direct or indirect exportation of web-hosting services that
    are for purposes other than personal communications (e.g., web-hosting
    services for commercial endeavors) or of domain name registration
    services.
    (c) Specific licenses may be issued on a case-by-case basis for the
    exportation of other, including fee-based, services and software
    incident to the sharing of information over the Internet, provided the
    software is designated as EAR99, is not subject to the EAR, or is
    classified by Commerce as mass market software under ECCN 5D992 of the
    EAR.


    Sec. 560.541 Third-country diplomatic and consular funds transfers.

    United States depository institutions and United States registered
    brokers or dealers in securities are authorized to process funds
    transfers, in a manner consistent with Sec. 560.516, for the operating
    expenses or other official business of third-country diplomatic or
    consular missions in Iran.


    Sec. 560.542 Importation and exportation of human remains for burial,
    cremation, or interment authorized.

    (a) The importation into the United States of human remains for
    burial, cremation, or interment, as well as of coffins or other
    receptacles containing such human remains, from Iran is authorized.
    (b) The importation into the United States for non-commercial
    purposes of finished tombstones or grave markers of Iranian origin is
    authorized.
    (c) The direct or indirect exportation from the United States, or
    by a United States person, wherever located, of human remains for
    burial, cremation, or interment, as well as of coffins or other
    receptacles containing such human remains, to Iran is authorized.
    (d) This section does not authorize the importation into the United
    States of Iranian-origin cultural property or other items of
    archaeological, historical, or rare scientific importance.


    Sec. 560.543 Sale of certain real property in Iran and transfer of
    related funds to the United States.

    (a) Individuals who are U.S. persons are authorized to engage in
    transactions necessary and ordinarily incident to the sale of real
    property in Iran and to transfer the proceeds to the United States,
    provided that such real property was either acquired before the
    individual became a U.S. person, or inherited from persons in Iran.
    Authorized transactions include, but are not limited to, engaging the
    services of any persons in Iran necessary for the sale, such as an
    attorney, funds agent, and/or real estate broker.
    (b) This section does not authorize:
    (1) The wind-down of commercial enterprises in Iran;
    (2) The re-investment in Iran of the proceeds from the real
    property sales authorized in paragraph (a) of this section; or
    (3) The exportation or reexportation to Iran of any goods
    (including software) or technology.


    Sec. 560.544 Certain educational activities by U.S. persons in third
    countries authorized.

    (a) Subject to the restriction set forth in paragraph (c) of this
    section, accredited undergraduate degree-granting academic institutions
    organized under the laws of the United States or any jurisdiction
    within the United States or located in the United States (``U.S.
    undergraduate institutions'') with undergraduate educational programs
    or undergraduate exchange programs in countries other than the United
    States or Iran are authorized to engage in the following activities
    with respect to such programs in the humanities, social sciences, law,
    and business:
    (1) Recruit, hire, and employ faculty and staff who are ordinarily
    resident in Iran;
    (2) Recruit, enroll, and educate students who are ordinarily
    resident in Iran;
    (3) Enter into and perform exchange agreements with Iranian
    universities;
    (4) Provide scholarships to students ordinarily resident in Iran;
    and

    [[Page 64687]]

    (5) Recruit individuals ordinarily resident in Iran, such as
    scholars, artists, performers, speakers, alumni, and students, to
    participate in events, such as conferences, lectures, film series,
    research workshops, exhibitions, theatrical and musical performances,
    and continuing education courses. U.S. undergraduate institutions are
    authorized to provide compensation, including honoraria, to such
    individuals.
    (b) Subject to the restriction set forth in paragraph (c) of this
    section:
    (1) Paragraph (a)(2) of this section authorizes the release of
    technology or software to students ordinarily resident in Iran,
    provided that all of the following requirements are met:
    (i) Such release is ordinarily incident and necessary to the
    undergraduate educational program or the undergraduate exchange program
    at the U.S. undergraduate institution in which the student is enrolled;
    (ii) The technology or software being released is designated as
    EAR99 under the Export Administration Regulations, 15 CFR parts 730
    through 774 (the ``EAR''), or constitutes Educational Information not
    subject to the EAR, as set forth in 15 CFR 734.9;
    (iii) The release does not otherwise require a license from the
    Department of Commerce; and
    (iv) The student to whom the release is made is not enrolled in the
    undergraduate educational program, or participating in the
    undergraduate exchange program, as an agent, employee, or contractor of
    the Government of Iran or a business entity or other organization in
    Iran.
    (2) This section authorizes enrollment in undergraduate courses in
    math, sciences, and engineering that are required or electives for
    undergraduate programs in the humanities, social sciences, law, or
    business provided the following conditions are met:
    (i) The undergraduate courses are required for the completion of
    the humanities, social sciences, law, or business program and are for
    ``introductory,'' non-major, freshman or sophomore equivalent courses
    only; or
    (ii) The undergraduate courses are required for the completion of
    the humanities, social sciences, law, or business program and are math-
    related accounting or economics classes at any undergraduate level, not
    to include courses allowing for any post-graduate work.
    (c) This section does not authorize the exportation or
    reexportation to Iran or the Government of Iran of any goods (including
    software) or technology, including any release of technology or
    software described in Sec. 560.418 of this part, except as expressly
    authorized in paragraph (b) of this section.
    (d) Specific licenses may be issued on a case-by-case basis
    authorizing accredited graduate degree-granting academic institutions
    organized under the laws of the United States or any jurisdiction
    within the United States or located in the United States with graduate
    educational programs or graduate exchange programs in third countries
    to recruit, hire, and employ faculty and staff who are ordinarily
    resident in Iran for such third-country graduate educational programs
    in the humanities, social sciences, law, and business or graduate
    exchange programs in the humanities, social sciences, law, and
    business, and to recruit, enroll, and educate students who are
    ordinarily resident in Iran in such third-country graduate educational
    programs in the humanities, social sciences, law, and business or
    graduate exchange programs in the humanities, social sciences, law, and
    business.


    Sec. 560.545 Democracy and human rights in Iran and academic and
    cultural exchange programs.

    (a) Specific licenses may be issued on a case-by-case basis to
    authorize nongovernmental organizations and other entities organized
    under the laws of the United States or any jurisdiction within the
    United States or located in the United States to engage in the
    following projects or activities in or related to Iran that are
    designed to directly benefit the Iranian people:
    (1) Projects, including conferences and training, to support human
    rights, democratic freedoms, and democratic institutions and to meet
    basic human needs; and
    (2) The establishment or support of independent civic
    organizations.
    (b) Specific licenses may be issued on a case-by-case basis to
    authorize U.S. persons to engage in the following projects or
    activities in or related to Iran that are designed to directly benefit
    the Iranian people:
    (1) The provision of donated professional medical services;
    (2) Certain targeted educational, cultural, and sports exchange
    programs, provided such programs are not in furtherance of Iranian
    military, industrial, or technological infrastructure or potential;
    (3) Environmental projects, provided such projects are not in
    furtherance of Iranian military or industrial infrastructure or
    potential; and
    (4) Projects, including exchanges and technical training, to
    improve the flow of public information through independent media
    available to the Iranian public.
    (c) Specific licenses issued pursuant to this section generally
    will not authorize the exportation or reexportation to Iran of goods
    (including software) and technology listed on the Commerce Control List
    in the Export Administration Regulations, 15 CFR part 774, supplement
    No. 1 (CCL).

    Note 1 to Sec. 560.545: The CCL includes items such as many
    laptop computers, personal computers, cell phones, personal digital
    assistants and other wireless handheld devices/blackberries, and
    other similar items. The exportation or reexportation of these items
    to Iran, even on a temporary basis, is prohibited, unless
    specifically authorized in a license issued pursuant to this part in
    a manner consistent with the Iran-Iraq Arms Nonproliferation Act of
    1992 and other relevant law.

    Sec. 560.546 Payments and transfers to blocked accounts in U.S.
    financial institutions.

    Any payment of funds or transfer of credit in which the Government
    of Iran, an Iranian financial institution, or any other person whose
    property and interests in property are blocked pursuant to Sec.
    560.211 has any interest that comes within the possession or control of
    a U.S. financial institution must be blocked in an account on the books
    of that financial institution. A transfer of funds or credit by a U.S.
    financial institution between blocked accounts in its branches or
    offices is authorized, provided that no transfer is made from an
    account within the United States to an account held outside the United
    States, and further provided that a transfer from a blocked account may
    be made only to another blocked account held in the same name.

    Note to Sec. 560.546: See Sec. 501.603 of this chapter for
    mandatory reporting requirements regarding financial transfers. See
    also Sec. 560.213 of this part concerning the obligation to hold
    blocked funds in interest-bearing accounts.

    Sec. 560.547 Entries in certain accounts for normal service charges
    authorized.

    (a) A U.S. financial institution is authorized to debit any blocked
    account held at that financial institution in payment or reimbursement
    for normal service charges owed it by the owner of that blocked
    account.
    (b) As used in this section, the term normal service charges shall
    include charges in payment or reimbursement for interest due; cable,
    telegraph, Internet, or telephone charges; postage costs; custody fees;
    small adjustment charges to correct bookkeeping errors; and, but not by
    way of limitation, minimum balance charges, notary and

    [[Page 64688]]

    protest fees, and charges for reference books, photocopies, credit
    reports, transcripts of statements, registered mail, insurance,
    stationery and supplies, and other similar items.

    Note to Sec. 560.547: See Sec. 560.517, which authorizes U.S.
    depository institutions and U.S. registered brokers or dealers in
    securities to provide and be compensated for services with respect
    to the limited maintenance of Iranian accounts other than blocked
    accounts, including the payment of interest and dividends and the
    debiting of service charges.

    Sec. 560.548 Investment and reinvestment of certain funds.

    Subject to the requirements of Sec. 560.213, U.S. financial
    institutions are authorized to invest and reinvest assets blocked
    pursuant to Sec. 560.211, subject to the following conditions:
    (a) The assets representing such investments and reinvestments are
    credited to a blocked account or subaccount that is held in the same
    name at the same U.S. financial institution, or within the possession
    or control of a U.S. person, but funds shall not be transferred outside
    the United States for this purpose;
    (b) The proceeds of such investments and reinvestments shall not be
    credited to a blocked account or subaccount under any name or
    designation that differs from the name or designation of the specific
    blocked account or subaccount in which such funds or securities were
    held; and
    (c) No immediate financial or economic benefit accrues (e.g.,
    through pledging or other use) to a person whose property and interests
    in property are blocked pursuant to Sec. 560.211.


    Sec. 560.549 Policy governing Iranian news organizations' offices in
    the United States.

    Specific licenses may be issued on a case-by-case basis authorizing
    transactions necessary for the establishment and operation of news
    bureaus in the United States by Iranian organizations whose primary
    purpose is the gathering and dissemination of news to the general
    public.


    Sec. 560.550 Certain noncommercial, personal remittances to or from
    Iran authorized.

    (a) In cases in which the transfer involves a noncommercial,
    personal remittance, the transfer of funds to or from Iran or for or on
    behalf of an individual ordinarily resident in Iran, other than an
    individual whose property and interests in property are blocked
    pursuant to Sec. 560.211, is authorized, provided that the transfer is
    processed by a United States depository institution or a United States
    registered broker or dealer in securities and not by any other U.S.
    person; does not involve debiting or crediting an Iranian account; and
    is not by, to, or through the Government of Iran, as defined in Sec.
    560.304.
    (b) Noncommercial, personal remittances do not include charitable
    donations to or for the benefit of an entity or funds transfers for use
    in supporting or operating a business, including a family-owned
    enterprise.

    Note to paragraph (b) of Sec. 560.550: Charitable donations of
    funds to or for the benefit of an entity in Iran require a specific
    license.

    (c) The transferring institutions identified in paragraph (a) of
    this section may rely on the originator of a funds transfer with regard
    to compliance with paragraph (a) of this section, provided that the
    transferring institution does not know or have reason to know that the
    funds transfer is not in compliance with paragraph (a) of this section.
    (d) An individual who is a U.S. person is authorized to carry funds
    as a noncommercial, personal remittance, as described in paragraphs (a)
    and (b) of this section, to an individual in Iran or ordinarily
    resident in Iran, other than an individual whose property and interests
    in property are blocked pursuant to Sec. 560.211, provided that the
    individual who is a U.S. person is carrying the funds on his or her
    behalf, but not on behalf of another person.


    Sec. 560.551 Student loan payments from persons in Iran authorized.

    United States depository institutions and private loan companies
    are authorized to engage in all transactions necessary to collect,
    accept, and process student loan payments from persons in Iran or
    ordinarily resident in Iran.


    Sec. 560.552 Transactions related to U.S. citizens residing in Iran.

    (a) Except as provided by paragraph (b) of this section, U.S.
    persons are authorized to engage in transactions in Iran ordinarily
    incident to the routine and necessary maintenance and other personal
    living expenses of U.S. citizens who reside on a permanent basis in
    Iran.
    (b) Nothing in this section authorizes transactions related to
    employment by U.S. persons in Iran.


    Sec. 560.553 Payments from funds originating outside the United
    States authorized.

    Effective October 22, 2012, receipts of payment of professional
    fees and reimbursement of incurred expenses for the provision of legal
    services authorized pursuant to Sec. 560.525(a) to or on behalf of the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211 are authorized from funds originating outside the United
    States, provided that:
    (a) Prior to receiving payment for legal services authorized
    pursuant to Sec. 560.525(a) rendered to the Government of Iran, an
    Iranian financial institution, or any other person whose property and
    interests in property are blocked pursuant to Sec. 560.211, the U.S.
    person that is an attorney, law firm, or legal services organization
    provides to the Office of Foreign Assets Control a copy of a letter of
    engagement or a letter of intent to engage specifying the services to
    be performed and signed by the individual to whom such services are to
    be provided or, where services are to be provided to an entity, by a
    legal representative of the entity. The copy of a letter of engagement
    or a letter of intent to engage, accompanied by correspondence
    referencing this paragraph (a), is to be mailed to: Licensing Division,
    Office of Foreign Assets Control, U.S. Department of the Treasury, 1500
    Pennsylvania Avenue NW., Annex, Washington, DC 20220;
    (b) The funds received by U.S. persons as payment of professional
    fees and reimbursement of incurred expenses for the provision of legal
    services authorized pursuant to Sec. 560.525(a) must not originate
    from:
    (1) A source within the United States;
    (2) Any source, wherever located, within the possession or control
    of a U.S. person; or
    (3) Any individual or entity, other than the person on whose behalf
    the legal services authorized pursuant to Sec. 560.525(a) are to be
    provided, whose property and interests in property are blocked pursuant
    to any part of this chapter or any Executive order; and

    Note to paragraph (b) of Sec. 560.553: This paragraph
    authorizes the blocked person on whose behalf the legal services
    authorized pursuant to Sec. 560.525(a) are to be provided to make
    payments for authorized legal services using funds originating
    outside the United States that were not previously blocked. Nothing
    in this paragraph authorizes payments for legal services using funds
    in which any other person whose property and interests in property
    are blocked pursuant to any part of this chapter or any Executive
    order holds an interest.

    (c) Reports. (1) U.S. persons who receive payments pursuant to this
    section in connection with legal services authorized pursuant to Sec.
    560.525(a) must submit quarterly reports providing information on the
    funds received, no later than 30 days following the end of the calendar
    quarter during which the

    [[Page 64689]]

    payments were received. Such reports shall specify:
    (i) The individual or entity from whom the funds originated and the
    amount of funds received; and
    (ii) If applicable:
    (A) The names of any individuals or entities providing related
    services to the U.S. person receiving payment in connection with
    authorized legal services, such as private investigators or expert
    witnesses;
    (B) A general description of the services provided; and
    (C) The amount of funds paid in connection with such services;
    (2) In the event that no transactions occur or no funds are
    received during the reporting period, a statement is to be filed to
    that effect; and
    (3) The reports, which must reference this section, are to be
    mailed to: Licensing Division, Office of Foreign Assets Control, U.S.
    Department of the Treasury, 1500 Pennsylvania Avenue NW., Annex,
    Washington, DC 20220.

    Note 1 to Sec. 560.553: U.S. persons who receive payments in
    connection with legal services authorized pursuant to Sec.
    560.525(a) do not need to obtain specific authorization to contract
    for related services that are ordinarily incident to the provision
    of those legal services, such as those provided by private
    investigators or expert witnesses, or to pay for such services.
    Additionally, U.S. persons do not need to obtain specific
    authorization to provide related services that are ordinarily
    incident to the provision of legal services authorized pursuant to
    Sec. 560.525(a).


    Note 2 to Sec. 560.553: Any payment authorized in or pursuant
    to this section that is routed through the U.S. financial system
    should reference this Sec. 560.553 to avoid the blocking of the
    transfer.


    Note 3 to Sec. 560.553: Nothing in this section authorizes the
    transfer of any blocked property, the debiting of any blocked
    account, the entry of any judgment or order that effects a transfer
    of blocked property, or the execution of any judgment against
    property blocked pursuant to any part of this chapter or any
    Executive order.

    Sec. 560.554 Importation and exportation of services related to
    conferences in the United States or third countries authorized.

    (a) Subject to the restrictions in paragraph (c) of this section,
    the importation of Iranian-origin services into the United States or
    other dealing in such services and the exportation, reexportation,
    sale, or supply of services from the United States or by a U.S. person
    are authorized where such services are performed or provided in the
    United States by or for a person who is ordinarily resident in Iran,
    other than the Government of Iran, an Iranian financial institution, or
    any other person whose property and interests in property are blocked
    pursuant to Sec. 560.211, for the purpose of, or which directly relate
    to, participating in a public conference, performance, exhibition or
    similar event, and such services are consistent with that purpose.
    (b) To the extent not otherwise exempt from the prohibitions of
    this part and subject to the restrictions in paragraph (c) of this
    section, the exportation, reexportation, sale, or supply of services
    directly related to the sponsorship by a U.S. person of a public
    conference or other similar public event in a third country that is
    attended by persons who are ordinarily resident in Iran, other than the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant to
    Sec. 560.211, is authorized, provided that attendance and
    participation at the conference or other similar public event is open
    for the public and that the conference or other similar event is not
    tailored in whole or in part to or for Iran or persons who are
    ordinarily resident in Iran.
    (c) This section does not authorize:
    (1) Any release of technology or software to a person who is
    ordinarily resident in Iran; and
    (2) The exportation, reexportation, sale or supply of services, or
    the importation of Iranian-origin services or other dealing in such
    services, related to the petroleum or petrochemical industries, energy
    development, crude oil or natural gas, pipelines, or the oil services
    industry.

    Subpart F--Reports


    Sec. 560.601 Records and reports.

    For provisions relating to required records and reports, see part
    501, subpart C, of this chapter. Recordkeeping and reporting
    requirements imposed by part 501 of this chapter with respect to the
    prohibitions contained in this part are considered requirements arising
    pursuant to this part.


    Sec. Sec. 560.602-560.603 [Reserved]

    Subpart G--Penalties


    Sec. 560.701 Penalties.

    (a) Attention is directed to section 206 of the International
    Emergency Economic Powers Act (50 U.S.C. 1705) (``IEEPA''), which is
    applicable to violations of the provisions of any license, ruling,
    regulation, order, directive, or instruction issued by or pursuant to
    the direction or authorization of the Secretary of the Treasury
    pursuant to this part or otherwise under IEEPA.
    (1) A civil penalty not to exceed the amount set forth in section
    206 of IEEPA may be imposed on any person who violates, attempts to
    violate, conspires to violate, or causes a violation of any license,
    order, regulation, or prohibition issued under IEEPA.

    Note to paragraph (a)(1) of Sec. 560.701: As of the date of
    publication in the Federal Register of the final rule amending and
    reissuing this part (October 22, 2012), IEEPA provides for a maximum
    civil penalty not to exceed the greater of $250,000 or an amount
    that is twice the amount of the transaction that is the basis of the
    violation with respect to which the penalty is imposed.

    (2) A person who willfully commits, willfully attempts to commit,
    or willfully conspires to commit, or aids or abets in the commission of
    a violation of any license, order, regulation, or prohibition may, upon
    conviction, be fined not more than $1,000,000, or if a natural person,
    be imprisoned for not more than 20 years, or both.
    (b) Adjustments to penalty amounts. (1) The civil penalties
    provided in IEEPA are subject to adjustment pursuant to the Federal
    Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as
    amended, 28 U.S.C. 2461 note).
    (2) The criminal penalties provided in IEEPA are subject to
    adjustment pursuant to 18 U.S.C. 3571.
    (c) Attention is also directed to 18 U.S.C. 1001, which provides
    that whoever, in any matter within the jurisdiction of the executive,
    legislative, or judicial branch of the Government of the United States,
    knowingly and willfully falsifies, conceals, or covers up by any trick,
    scheme, or device a material fact, or makes any materially false,
    fictitious, or fraudulent statement or representation, or makes or uses
    any false writing or document knowing the same to contain any
    materially false, fictitious, or fraudulent statement or entry shall be
    fined under title 18, United States Code, or imprisoned, or both.
    (d) Attention is directed to 18 U.S.C. 2332d, as added by Public
    Law 104-132, section 321, which provides that, except as provided in
    regulations issued by the Secretary of the Treasury, in consultation
    with the Secretary of State, a U.S. person, knowing or having
    reasonable cause to know that a country is designated under section
    6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a
    country supporting international terrorism, engages in a financial
    transaction with the government of that country, shall be

    [[Page 64690]]

    fined under title 18, United States Code, or imprisoned for not more
    than 10 years, or both.
    (e) Violations of this part may also be subject to relevant
    provisions of Customs laws and other applicable laws.


    Sec. 560.702 Detention of shipments.

    Import shipments into the United States of Iranian-origin goods in
    violation of Sec. 560.201 and export shipments from the United States
    of goods destined for Iran in violation of Sec. 560.204 shall be
    detained. No such import, export, or reexport will be permitted to
    proceed, except as specifically authorized by or on behalf of the
    Secretary of the Treasury. Unless licensed, such shipments are subject
    to penalty or seizure and forfeiture action, under the customs laws or
    other applicable provisions of law, depending on the circumstances.


    Sec. 560.703 Pre-Penalty Notice; settlement.

    (a) When required. If the Office of Foreign Assets Control has
    reason to believe that there has occurred a violation of any provision
    of this part or a violation of the provisions of any license, ruling,
    regulation, order, direction, or instruction issued by or pursuant to
    the direction or authorization of the Secretary of the Treasury
    pursuant to this part or otherwise under IEEPA and determines that a
    civil monetary penalty is warranted, the Office of Foreign Assets
    Control will issue a Pre-Penalty Notice informing the alleged violator
    of the agency's intent to impose a monetary penalty. A Pre-Penalty
    Notice shall be in writing. The Pre-Penalty Notice may be issued
    whether or not another agency has taken any action with respect to the
    matter. For a description of the contents of a Pre-Penalty Notice, see
    Appendix A to part 501 of this chapter.
    (b)(1) Right to respond. An alleged violator has the right to
    respond to a Pre-Penalty Notice by making a written presentation to the
    Office of Foreign Assets Control. For a description of the information
    that should be included in such a response, see Appendix A to part 501
    of this chapter.
    (2) Deadline for response. A response to a Pre-Penalty Notice must
    be made within the applicable 30-day period set forth in this
    paragraph. The failure to submit a response within the applicable time
    period set forth in this paragraph shall be deemed to be a waiver of
    the right to respond.
    (i) Computation of time for response. A response to a Pre-Penalty
    Notice must be postmarked or date-stamped by the U.S. Postal Service
    (or foreign postal service, if mailed abroad) or courier service
    provider (if transmitted to the Office of Foreign Assets Control by
    courier) on or before the 30th day after the postmark date on the
    envelope in which the Pre-Penalty Notice was mailed. If the Pre-Penalty
    Notice was personally delivered by a non-U.S. Postal Service agent
    authorized by the Office of Foreign Assets Control, a response must be
    postmarked or date-stamped on or before the 30th day after the date of
    delivery.
    (ii) Extensions of time for response. If a due date falls on a
    federal holiday or weekend, that due date is extended to include the
    following business day. Any other extensions of time will be granted,
    at the discretion of the Office of Foreign Assets Control, only upon
    specific request to the Office of Foreign Assets Control.
    (3) Form and method of response. A response to a Pre-Penalty Notice
    need not be in any particular form, but it must be typewritten and
    signed by the alleged violator or a representative thereof, must
    contain information sufficient to indicate that it is in response to
    the Pre-Penalty Notice, and must include the Office of Foreign Assets
    Control identification number listed on the Pre-Penalty Notice. A copy
    of the written response may be sent by facsimile, but the original also
    must be sent to the Office of Foreign Assets Control Civil Penalties
    Division by mail or courier and must be postmarked or date-stamped in
    accordance with paragraph (b)(2) of this section.
    (c) Settlement. Settlement discussion may be initiated by the
    Office of Foreign Assets Control, the alleged violator, or the alleged
    violator's authorized representative. For a description of practices
    with respect to settlement, see Appendix A to part 501 of this chapter.
    (d) Guidelines. Guidelines for the imposition or settlement of
    civil penalties by the Office of Foreign Assets Control are contained
    in Appendix A to part 501 of this chapter.
    (e) Representation. A representative of the alleged violator may
    act on behalf of the alleged violator, but any oral communication with
    the Office of Foreign Assets Control prior to a written submission
    regarding the specific allegations contained in the Pre-Penalty Notice
    must be preceded by a written letter of representation, unless the Pre-
    Penalty Notice was served upon the alleged violator in care of the
    representative.


    Sec. 560.704 Penalty imposition.

    If, after considering any written response to the Pre-Penalty
    Notice and any relevant facts, the Office of Foreign Assets Control
    determines that there was a violation by the alleged violator named in
    the Pre-Penalty Notice and that a civil monetary penalty is
    appropriate, the Office of Foreign Assets Control may issue a Penalty
    Notice to the violator containing a determination of the violation and
    the imposition of the monetary penalty. For additional details
    concerning issuance of a Penalty Notice, see Appendix A to part 501 of
    this chapter. The issuance of the Penalty Notice shall constitute final
    agency action. The violator has the right to seek judicial review of
    that final agency action in federal district court.


    Sec. 560.705 Administrative collection; referral to United States
    Department of Justice.

    In the event that the violator does not pay the penalty imposed
    pursuant to this part or make payment arrangements acceptable to the
    Office of Foreign Assets Control, the matter may be referred for
    administrative collection measures by the Department of the Treasury or
    to the United States Department of Justice for appropriate action to
    recover the penalty in a civil suit in a federal district court.

    Subpart H--Procedures


    Sec. 560.801 Procedures.

    For license application procedures and procedures relating to
    amendments, modifications, or revocations of licenses; administrative
    decisions; rulemaking; and requests for documents pursuant to the
    Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see
    part 501, subpart E, of this chapter.


    Sec. 560.802 Delegation by the Secretary of the Treasury.

    Any action that the Secretary of the Treasury is authorized to take
    pursuant to Executive Order 12613 of October 29, 1987 (3 CFR, 1987
    Comp., p. 256), Executive Order 12957 of March 15, 1995 (3 CFR, 1995
    Comp., p. 332), Executive Order 12959 of May 6, 1995 (3 CFR, 1995
    Comp., p. 356), Executive Order 13059 of August 19, 1997 (3 CFR, 1997
    Comp., p. 217), Executive Order 13599 of February 5, 2012 (77 FR 6659,
    February 8, 2012), and any further Executive orders relating to the
    national emergency declared in Executive Order 12957, may be taken by
    the Director of the Office of Foreign Assets Control or by any other
    person to whom the Secretary of the Treasury has delegated authority so
    to act.

    [[Page 64691]]

    Sec. 560.803 [Reserved]

    Subpart I--Paperwork Reduction Act


    Sec. 560.901 Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under
    the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information
    collections relating to recordkeeping and reporting requirements,
    licensing procedures (including those pursuant to statements of
    licensing policy), and other procedures, see Sec. 501.901 of this
    chapter. An agency may not conduct or sponsor, and a person is not
    required to respond to, a collection of information unless it displays
    a valid control number assigned by OMB.

    Appendix A to Part 560 [Reserved]

    Appendix B to Part 560--Bulk Agricultural Commodities

    Notes: 1. Appendix B sets forth those bulk agricultural
    commodities eligible for sale pursuant to the licensing procedures
    and the general license in Sec. 560.530.
    2. Commodities are identified by their classification numbers in
    the Harmonized Tariff Schedule of the United States (see 19 U.S.C.
    1202) (``HTS'').


    ------------------------------------------------------------------------
    HTS No. Commodity
    ------------------------------------------------------------------------
    1001.10............................... Durum Wheat.
    1001.90............................... Other Wheat and Meslin,
    including seed, Red Spring
    Wheat, White Winter Wheat,
    ``Canadian'' Western Red Winter
    Wheat, Soft White Spring Wheat,
    and Wheat not elsewhere
    specified.
    1101.00............................... Wheat or Meslin Flour.
    1006.10............................... Rice in the husk (paddy or
    rough).
    1006.20............................... Husked (brown) Rice.
    1006.30............................... Semi-milled or wholly milled
    Rice, whether or not polished
    or glazed.
    1006.40............................... Broken Rice.
    1102.30............................... Rice Flour.
    1103.14............................... Rice Groats, Meal and Pellets.
    1002.00............................... Rye.
    1003.00............................... Barley.
    1004.00............................... Oats.
    1007.00............................... Grain Sorghum.
    1005.00............................... Corn (Maize).
    0713.31............................... Dried Beans including Vigna
    mungo (L.), Hepper, and Vigna
    radiata (L.) Wilczek.
    0713.32............................... Small red (adzuki) beans.
    0713.33............................... Kidney beans, including white
    pea beans.
    0713.39............................... Beans, other.
    0713.50............................... Broad beans and horse beans.
    0713.10............................... Dried Peas (Pisum sativum).
    0713.20............................... Chickpeas (garbanzos).
    0713.40............................... Lentils.
    0713.90............................... Dried leguminous vegetables,
    shelled, not elsewhere
    specified.
    1201.00............................... Soybeans, whether or not broken.
    2304.00............................... Soybean cake, meal and pellets.
    1507.10............................... Soybean oil, crude.
    1507.90............................... Soybean oil, other.
    1514.10............................... Rapeseed, colza and mustard oil,
    crude.
    1514.90............................... Rapeseed, colza and mustard oil,
    other.
    1515.21............................... Corn (Maize) oil, crude.
    1515.29............................... Corn (Maize) oil, other.
    1512.21............................... Cottonseed oil, crude.
    1512.29............................... Cottonseed oil, other.
    1517.90............................... Cottonseed oil, hydrogenated.
    1508.10............................... Peanut (ground-nut) oil, crude.
    1508.90............................... Peanut (ground-nut) oil, other.
    1515.50............................... Sesame oil.
    1512.11............................... Sunflower-seed oil, crude.
    1512.19............................... Sunflower-seed oil, other.
    1212.91............................... Sugar Beets, fresh, chilled,
    frozen or dried.
    1212.92............................... Sugar Cane, fresh, chilled,
    frozen or dried.
    1701.11............................... Cane Sugar, raw, solid form.
    1701.12............................... Beet Sugar, raw, solid form.
    1701.91............................... Cane or Beet Sugar, solid form,
    containing added coloring or
    flavoring.
    1701.99............................... Cane or Beet Sugar, other, not
    elsewhere specified.
    ------------------------------------------------------------------------

    Appendix C to Part 560--[Reserved]

    Appendix A to Chapter V--[Amended]

    0
    2. The authority citation for Appendix A to Chapter V continues to read
    as follows:

    Authority: 3 U.S.C. 301; 8 U.S.C. 1182, 1189; 18 U.S.C. 2339b;
    21 U.S.C. 1091-1908; 22 U.S.C. 287C; 31 U.S.C. 321(b); 50 U.S.C.
    App. 1-44; Pub. L. 110-286, 122 Stat. 2632; Pub. L. 111-195, 124
    Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298.


    0
    3. Revise Note 8 to Appendix A to Chapter V to read as follows:

    Appendix A to Chapter V--Information Pertaining to the Specially
    Designated Nationals and Blocked Persons List

    * * * * *
    8. The SDN List includes the names of persons determined to be
    the Government of Iran, an Iranian financial institution, or any
    other person whose property and interests in property are blocked
    pursuant to Sec. 560.211 of the Iranian Transactions and Sanctions
    Regulations, 31 CFR part 560 (the ``ITSR''). The SDN List entries
    for such persons include the identifier ``[IRAN].'' U.S. persons are
    advised to review 31 CFR part 560 prior to engaging in transactions
    involving the

    [[Page 64692]]

    persons included on the SDN List with the identifier ``[IRAN].''
    U.S. persons are further cautioned that persons identified as the
    Government of Iran, an Iranian financial institution, or any other
    person whose property and interests in property are blocked pursuant
    to 31 CFR 560.211 also may be designated or blocked pursuant to
    other sanctions programs administered by OFAC. The SDN List entry
    for such a person may include--in addition to the identifier
    ``[IRAN]''--identifier(s) for the other sanctions program(s)
    pursuant to which the person is listed on the SDN List. Moreover,
    the prohibitions set forth in the ITSR, and the compliance
    obligations, with respect to persons who fall within the definition
    of the Government of Iran in Sec. 560.304 of the ITSR apply
    regardless of whether such persons are identified on the SDN List.

    Dated: October 15, 2012.
    Adam J. Szubin,
    Director, Office of Foreign Assets Control.
    Approved: October 15, 2012.
    David S. Cohen,
    Under Secretary, Office of Terrorism and Financial Intelligence,
    Department of the Treasury.
    [FR Doc. 2012-25770 Filed 10-19-12; 8:45 am]
    BILLING CODE P




  2. #2
    I posted a copy on Friday which highlights the pertinent parts. See: http://www.slideshare.net/BigJoe5/of...ions-10-222012

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