OFAC Clarifies Iran Sanctions Relief Under JCPOA
New OFAC guidance clarifies rules for non-U.S. banks handling Iranian transactions and for U.S. persons at foreign firms dealing with Iran.
The Treasury Department's Office of Foreign Assets Control (OFAC) has issued new guidance clarifying the scope of sanctions relief under the Joint Comprehensive Plan of Action (JCPOA). The update addresses key operational questions for U.S. and foreign companies navigating the post-Implementation Day environment. For financial institutions, OFAC confirmed that U.S. banks may maintain correspondent accounts for non-U.S. banks that do business with non-sanctioned Iranian entities, though Iran-related transactions cannot be routed through the U.S. financial system. For multinationals, the guidance clarifies that a U.S. person serving as a director or manager at a foreign company must be 'ring-fenced' from any Iran-related business conducted by that company, and it recommends a blanket recusal policy. OFAC also affirmed that under General License H, a U.S. parent company can adjust its policies to permit a foreign subsidiary to establish a physical presence in Iran. Counsel should review compliance programs, especially recusal policies for U.S. executives, to align with this specific guidance.