Pursuant to the Order, operators should consider that the wind down period on August 6 2019 and Executive Order 13871 is now in full effect.
As a result, any transactions which involve any activities described in the Order are now subject to possible sanctions.
The US Office of Foreign Asset Control (OFAC) has issued a set of FAQs regarding the Order, providing clarity on the potential scope of the Order:
1. Is there a wind-down period?
Persons engaged in transactions that could be sanctioned under E.O. 13871 had a 90-day period after the issuance of E.O. 13871 to wind down those transactions without exposure to sanctions under E.O. 13871. Those persons were advised to take the necessary steps to wind down transactions by the end of the 90-day wind-down period to avoid exposure to sanctions, and that entering into new business that would be sanctionable under the E.O. on or after May 8, 2019 will not be considered wind-down activity and could be sanctioned even during the wind-down period. The wind-down period expires on August 6, 2019. [08-06-2019].
2. Does E.O. 13871 expand upon existing sanctions relating to trade with Iran in certain raw and semi-finished metals, such as aluminum and steel?
Yes. E.O. 13871 expands upon existing sanctions under section 1245 of IFCA on the sale, supply, or transfer, directly or indirectly, to or from Iran of certain materials, including raw and semi-finished metals such as aluminum and steel, as described in subsections 1245(a)(l)(B) or (C) of IFCA.
In addition, E.O. 13871 explicitly targets the iron and copper sectors of Iran. [08-06-2019].
3. Are there exceptions to the sanctions imposed under E.O.13871?
Yes. The sanctions authorized under E.O. 13871 do not apply to transactions for the conduct of the official business of the United States Government or the United Nations (including its specialized agencies, programmes, funds, and related organizations) by employees, grantees, or contractors thereof. [08-06-2019]
4. What does the August 06, 2019 regulatory amendment related to E.O. 13871 do?
The regulatory amendment: (i) implements the correspondent or payable-through account sanctions set forth in section 2 of E.O. 13871 by incorporating those provisions in the Iranian Financial Sanctions Regulations, 31 C.F.R. part 561 (IFSR); (ii) renames the Iranian Human Rights Regulations, 31 C.F.R. part 562, as the Iranian Sector and Human Rights Abuses Sanctions Regulations (ISHR); and (iii) implements the blocking sanctions set forth in section 1 of E.O. 13871 by incorporating those provisions in the ISHR. [08-06-2019]