‘Implementation Day’ Marks Rollback of Significant Nuclear-Related Sanctions on Iran – June 2016
Schulte Roth & Zabel
Description
LJN’s Business Crimes
June 2016
pets and other textile floor coverings
Powers
and their delivery means, includ-
and carpets used as wall hangings Act (IEEPA) provides for a maxi-
ing ballistic missiles. On Jan. 17,
that are classified under Chapter mum civil penalty of the greater
2016, the day after Implementa-
57 or Heading 9706.00.0060 of the
Emergency
Economic
of $250,000 or twice the amount tion Day, OFAC added 11 entities
Harmonized Tariff Schedule of the of the transaction that is the basis
and individuals to the SDN List
United States; and 2) foodstuffs in-
of the violation. Each prohibited
for their involvement in procuring
tended for human consumption that
transaction is viewed as a separate
goods for Iran’s ballistic missile
are classified under Chapters 2-23 of
violation.
For criminal violations, program. Finally, on Jan. 20, 2016, the Harmonized Tariff Schedule of which involve a willful violation or FinCEN, one of the U.S.
Depart- the United States. However, U.S. per- willful attempt to violate Iranian ment of the Treasury’s lead agen- sons remain prohibited from paying sanctions regulations, IEEPA pro- cies in the fight against money Iranian companies for these imports vides for a maximum penalty of $1 laundering, called on U.S.
financial by crediting or debiting an Iranian million, imprisonment of 20 years, institutions to “give special attenaccount. Therefore, payment mecha- or both. Proceeds derived from an tion to business relationships and nisms under this general license typ- transactions with Iran” because of IEEPA offense are also subject to ically involve a third-country bank or forfeiture. money service business to finance the purchase from a third country. Civil and Criminal the risk of terrorist financing. Sanctions in Place After Imple- mentation Day —â–— Companies that want to engage Penalties in new business involving Iran OFAC may take a variety of en- must continue to exercise cauforcement actions for sanctions violations, including tion.
Iran remains designated as imposing a state sponsor of terrorism, and civil monetary penalties and mak- the JCPOA does not alter that desing criminal referrals to appro- ignation. Indeed, the rollback of priate law enforcement agencies sanctions described above can for investigation and/or prosecu- be “snapped back” if Iran fails tion. The penalties for such viola- to comply with the JCPOA going tions can be substantial and vary forward.
Moreover, the U.S. gov- based on the sanctions program ernment continues to enforce and other factors. For violations sanctions against persons and enof many of the Iranian sanctions tities involved in the proliferation regulations, the International of weapons of mass destruction Reprinted with permission from the June 2016 edition of the Law Journal Newsletters.
© 2016 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited.
For information, contact 877.257.3382 or reprints@ alm.com. # 081-05-16-05 .
For criminal violations, program. Finally, on Jan. 20, 2016, the Harmonized Tariff Schedule of which involve a willful violation or FinCEN, one of the U.S.
Depart- the United States. However, U.S. per- willful attempt to violate Iranian ment of the Treasury’s lead agen- sons remain prohibited from paying sanctions regulations, IEEPA pro- cies in the fight against money Iranian companies for these imports vides for a maximum penalty of $1 laundering, called on U.S.
financial by crediting or debiting an Iranian million, imprisonment of 20 years, institutions to “give special attenaccount. Therefore, payment mecha- or both. Proceeds derived from an tion to business relationships and nisms under this general license typ- transactions with Iran” because of IEEPA offense are also subject to ically involve a third-country bank or forfeiture. money service business to finance the purchase from a third country. Civil and Criminal the risk of terrorist financing. Sanctions in Place After Imple- mentation Day —â–— Companies that want to engage Penalties in new business involving Iran OFAC may take a variety of en- must continue to exercise cauforcement actions for sanctions violations, including tion.
Iran remains designated as imposing a state sponsor of terrorism, and civil monetary penalties and mak- the JCPOA does not alter that desing criminal referrals to appro- ignation. Indeed, the rollback of priate law enforcement agencies sanctions described above can for investigation and/or prosecu- be “snapped back” if Iran fails tion. The penalties for such viola- to comply with the JCPOA going tions can be substantial and vary forward.
Moreover, the U.S. gov- based on the sanctions program ernment continues to enforce and other factors. For violations sanctions against persons and enof many of the Iranian sanctions tities involved in the proliferation regulations, the International of weapons of mass destruction Reprinted with permission from the June 2016 edition of the Law Journal Newsletters.
© 2016 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited.
For information, contact 877.257.3382 or reprints@ alm.com. # 081-05-16-05 .
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