OFAC Finalizes Financial Institution Provisions of Iran Sanctions Act
The Office of Foreign Assets Control has issued a final rule, effective August 16, 2010, which establishes regulations to codify certain financial institution provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), which was signed into law on July 1, 2010.
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The final rule codifies sections 104(c) and (d) of the CISADA on prohibitions with respect to correspondent accounts or payable-through accounts of certain foreign financial institutions and prohibitions on persons owned or controlled by U.S. financial institutions.
Comments may be submitted until October 15, 2010.
Rule Does Not Cover Carpet/Food Import Ban, Procurement Certification, Etc.
The final rule does not cover the following CISADA provisions (partial list):
- ban of previously exempted imports of certain carpets and rugs and foodstuffs (such as pistachios, caviar, etc.) which is scheduled to take effect 90 days after enactment (or approximately September 29, 2010);
- requirement that prospective government contractors certify they do not engage in any sanctionable activity under the Iran sanctions;
- procurement ban for companies that export sensitive technology to Iran;
- expanded sanctions for violators of Iran petroleum provisions; etc.
(See ITT’s Online Archives or 06/30/10 news, 10063049, for BP summary of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010.)
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(FR Pub 08/16/10)