Iranian Transactions Regulations, 64663-64692 [2012-25770]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[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





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Foreign Assets Control Office





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31 CFR Part 560





Iranian Transactions Regulations; Final Rule

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

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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.

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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

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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.

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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