Print
The U.S. Treasury Department has just issued a general license authorizing U.S. NGOs to transfer funds to Iran to help victims of twin earthquakes that rocked the country’s northwest province earlier this month. The license, which appears below, is effective as of today, August 21, 2012, and will remain operative until October 5, 2012. The license’s language is broad, giving NGOs flexibility in designating how their funds will be used and in choosing recipient individuals/organizations. The license requires NGOs to submit periodic reports to Treasury about their fund transfers, but does not address the consequences, if any, that NGOs will face if found to be out of compliance. The license, while generally welcome, is also a reminder of the broad, expansive scope of the U.S. sanctions regime against Iran, demonstrating its impact on the Iranian population and undercutting any claims as to its “targeted” nature.
OFFICE OF FOREIGN ASSETS CONTROL
Iranian Transactions Regulations 31 C.F.R. Part 560
Executive Order 13599, “Blocking Property of the Government of Iran and Iranian Financial Institutions”
GENERAL LICENSE C
Funds transfers related to earthquake relief efforts
to or for the benefit of persons in Iran authorized until October 5, 2012.
(a) Subject to the conditions and restrictions ofparagraphs (b), (c), (d), and (f) below, effective August 21, 2012, U.S.-based non-governmental organizations classified as tax-exempt pursuant to section 501(c)(3) ofthe Internal Revenue Code (hereinafter, “U.S. NGOs”) are authorized for a 45-day period to collect donations of funds to be used in direct support of humanitarian relief and reconstruction activities being undertaken in Iran in direct response to the earthquake of August 11, 2012, in the locations affected by that earthquake, and to transfer those funds to Iran or for or on behalfofa person in Iran consistent with 31 C.F.R. § 560.516(a) and (b).[1]
(b) Transfers of funds by a single U.S. NGO may not exceed USD$300,000 in the aggregate over the 45-day period.
(c) A United States depository institution or United States registered broker or dealer in securities that is a U.S. person and that is processing the funds transfers pursuant paragraphs (a) and (b) above may rely on the originator ofthe funds transfer with regard to compliance with paragraphs (a) and (b) above, provided that the United States depository institution or United States registered broker or dealer in securities does not know or have reason to know that the funds transfer is not in compliance with paragraphs (a) and (b) above.[2]
(d) Reports must be submitted by U.S. NGOs upon the first funds transfer, and thereafter on September 21, 2012, and October 21, 2012, providing information about all funds transfers to Iran or for or on behalf of a person in Iran, pursuant to this general license, including the dollar amount of the transfers, the recipient(s) of the funds, and the intended use ofthe funds, to the Office ofForeign Assets Control, Attn: Licensing Division, U.S. Department ofthe Treasury, 1500 Pennsylvania Avenue, NW, Washington, DC 20220, and to the Office of Sanctions Policy and Implementation, U.S. Department of State, 2201 C Street, NW, Washington, DC 20520.
(e) Example. A U.S.-based, tax-exempt non-governmental organization may collectdonations from U.S. persons to be used in direct support of humanitarian relief and reconstruction activities being undertaken in Iran in direct response to the earthquake of August 11, 2012. A United States depository institution may transmit the funds collected by the U.S.- based, tax-exempt non-governmental organization to an entity in Iran engaged in humanitarian relief and reconstruction activities being undertaken in response to the earthquake, provided the funds are to be used in direct support of such activities and are not for the benefit of any person whose property and interests in property are blocked pursuant to Executive orders other than E.O. 13599, such as the Islamic Revolutionary Guard Corps. In addition, the funds must be routed through a third-country financial institution to an Iranian financial institution that has not been designated under the Weapons ofMass Destruction Proliferators Sanctions Regulations, 31 C.F.R. part 544, or the Global Terrorism Sanctions Regulations, 31 C.F.R. part 594, or any other Global Terrorism Sanctions Regulations, 31 C.F.R. part 594, or any other part of31 C.F.R. chapter V, or any Executive order, but whose property and interests in property are blocked solely under E.O. 13599.
(f) This authorization expires at 11:59 p.m. eastern daylight time, October 5, 2012.
Date: August 21, 2012
Barbara C. Hammerle
Acting Director
Office o f Foreign Assets Control
[1] Consistent with section 560.516(a) and (b) of the Iranian Transactions Regulations, 31 C.F.R. Part 560, and General License A, the transfer of funds may not be by, to, or through any of the following: (1) a person whose property and interests in property are blocked pursuant to the Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 C.F.R. part 544, or the Global Terrorism Sanctions Regulations, 31 C.F.R. part 594; or (2) a person whose property and interests in property are blocked pursuant to any other part of 31 C.F.R. chapter V, or any Executive order, except a person whose property and interests in property are blocked solely pursuant to Executive Order 13599 (“Blocking Property ofthe Government oflran and Iranian Financial Institutions”).
[2] The requirements of31 C.F.R. § 560.516(c) do not apply to transfers processed pursuant to this General License.
