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Iran Sanctions Contained in the Iran Threat Reduction and Syria Human Rights Act (ITRSHRA)
Commercial Sanctions under ITRSHRA
Summary of Previous Sanctions:
Previously, ISA, as amended by CISADA, provided for sanctions on: 1) Making an investment above certain monetary thresholds that directly and significantly contributes to
New Sanctionable Commercial Activities Under ITRSHRA:
ITRSHRA amends ISA/CISADA and also adds new categories of sanctionable commercial activities with
*Participating in a joint venture established on or after
*Owning, operating, controlling, or insuring a vessel that on or after 90 days from the Act's enactment was used to transport crude oil from
*Owning, operating, or controlling a vessel that on or after 90 days from the Act's enactment is used in a manner that conceals the Iranian origin of crude oil or refined petroleum products transported on the vessel, including by permitting the vessel's operator to suspend the operation of the vessel's satellite tracking device or obscuring the ownership, operation, or control of the vessel.
*Providing underwriting services, insurance, or reinsurance on or after the enactment of the Act for the
*Purchasing, subscribing to, or facilitating the issuance of sovereign debt of the Government of
Sanctions Provisions on Commercial Activities with
Previously, ISA required that the
The available sanctions include prohibitions on:
1. Export assistance from the
2. Licenses for export of U.S. military, "dual use," or nuclear-related goods or technology;
3. Private U.S. bank loans exceeding
4. If the sanctioned person is a financial institution, designation as a primary dealer in USG debt instruments or service as a repository of USG funds;
5. Procurement contracts with the
6. Foreign exchange transactions subject to U.S. jurisdiction;
7. Financial transactions subject to U.S. jurisdiction;
8. Transactions with respect to property and interests in property subject to U.S. jurisdiction;
9. Imports to
10. Ban on investment in equity or debt of the sanctioned person;
11. Exclusion (visa ban) of corporate officers of sanctioned entities;
12. Or sanctions (any of the above) on principal executive officers of sanctioned entities.
Sanctions on Financial Institutions under ITRSHRA
Summary of Previous Sanctions:
CISADA provides for sanctions on foreign financial institutions that knowingly facilitate: Iranian Weapons of Mass Destruction (WMD) transactions; transactions related to
New Sanctionable Activities for Financial Institutions under ITRSHRA:
ITRSHRA amends CISADA by adding new activities that could result in correspondent account sanctions for foreign financial institutions that knowingly:
*Facilitate a significant transaction for a person who is designated by
*Facilitate the activities of persons working on behalf of, at the direction of, or owned or controlled by an entity subject to financial sanctions under an
ITRSHRA also provides for the blocking of property or interests in property subject to U.S. jurisdiction of entities:
*Providing, enabling, or facilitating access to specialized financial messaging services for the
ITRSHRA Changes to Section 1245 of the Fiscal Year 2012 National Defense Authorization Act (NDAA)
*Expands sanctionable activities under the NDAA to include, from 180 days after the enactment of the Act, non-petroleum transactions by state-owned/controlled foreign financial institutions that are not central banks.
*Narrows the NDAA exception for "significant reduction" to only include, from 180 days after the enactment of the Act, financial transactions: (i) for trade in goods or services between the country with primary jurisdiction over the foreign financial institution and
*Expands eligibility for the NDAA exception to include countries that were purchasing crude oil from
Terrorism or Proliferation-Related Provisions of ITRSHRA
Summary of Previous Sanctions:
E.O. 13382, E.O. 13224, E.O. 12938, and the
New Terrorism or Proliferation-Related Sanctionable Activities under ITRSHRA:
IRGC and UNSC-Designated Entities
ITRSHRA contains several provisions for knowingly engaging in actions with respect to the IRGC or Iranian entities subject to UNSCRs. These include:
*Requires within 90 days of the enactment of the Act identification and blocking of all property and interests in property subject to U.S. jurisdiction, as well as visa denial, for officials, agents, or affiliates of the IRGC.
*Requires 5 out of 12 sanctions (the same as the sanctions on commercial-related activities above) on persons that, on or after the enactment of the Act, materially assist, sponsor, or provide financial, material, or technological support for, or goods or services in support of, or engage in significant transactions with, the IRGC or its officials, agents, or affiliates; and allows additional sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C.
*Requires 5 out of 12 sanctions (the same as the sanctions on commercial-related activities above) on persons that, on or after the enactment of the Act, engage in significant transactions with a person subject to, or a person acting on behalf of or at the direction of a person subject to, financial sanctions pursuant to an
*Authorizes measures against agencies of foreign (non-Iranian) governmental entities that materially assist, sponsor, or provide financial, material, or technological support for, or goods and services in support of, or materially engage in a significant transaction with, designated IRGC officials, agents, or affiliates, or a person designated by
*Authorized measures include restrictions on foreign assistance, sales of defense articles, and licenses for United States Munitions List items, as well as U.S. opposition to international financial institution (IFI) loans or assistance.
ITRSHRA provides for sanctions for knowingly engaging in activities related to
*Requires 5 out of 12 sanctions (the same as those for the commercial-related sanctions above) on a person for exporting, transferring, permitting, or otherwise facilitating, on or after the date of enactment of the Act, the transshipment of any goods, services, technology, or other items to any other person while the person knew or should have known that the export, transfer, or transshipment would likely result in another person exporting, transferring, transshipping or otherwise providing the goods, services, technology, or other items to
*Requires 5 out of 12 sanctions (the same as those for the commercial-related sanctions above) for participating, on or after the Act's enactment, in a joint venture established on or after
*Requires an asset freeze and prohibition on transactions in property and interests of entities that sell, lease, or provide a vessel or insurance, reinsurance, or other shipping services for the transportation to or from
Human Rights-Related Provisions of ITRSHRA:
ITRSHRA amends CISADA to include two new sections 105A and 105B that require the
*On or after the date of enactment of ITRSHRA, knowingly transferring or facilitating the transfer of, or providing services for, goods or technologies to
*This provision includes, but is not limited to, firearms or ammunition, rubber bullets, police batons, pepper or chemical sprays, stun grenades, electroshock weapons, tear gas, water cannons, and surveillance technology.
*It also includes "sensitive technology", which is defined by section 106 of CISADA as hardware, software, telecommunications equipment or any other technology the President determines is to be used specifically 1) to restrict the free flow of unbiased information in
*Engaging in censorship or other activities, on or after
Expanded Liability for U.S. Companies
*No later than 60 days after the enactment of the Act, ITRSHRA prohibits any entity owned or controlled by a U.S. person which is established or maintained outside of
*ITRSHRA does provide for certain waivers of sanctions for the commercial, financial, or proliferation/terrorism-related activities with
 This sanction, added by subsection 201(5) of the Act, and other sanctions under the Act do not apply to certain projects initiated before the enactment of the Act pursuant to a production-sharing agreement with the government of a country other than
 The President is authorized not to impose these sanctions with respect to a person if the President receives reliable assurances that the person will terminate the provision of underwriting services or insurance or reinsurance for NIOC, NITC, and any successor entity to either such company, not later than the date that is 120 days after the date of the enactment.
 Technologies that have both civilian and military uses.
 As defined in section 921 of title 18,
 Civil penalties would not apply if the U.S. parent company divests or terminates its business with the entity not later than the date that is 180 days after the enactment of the Act.
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