Financial Crime World

US Sanctions on Iran: An Overview

The United States has imposed significant sanctions on Iran and its entities, affecting various sectors and activities. This article provides an overview of the sanctions, recent actions, and designations.

Sanctions Overview

The Iranian Transactions and Sanctions Regulations (ITSR) are in place to prohibit most direct or indirect transactions with Iran by U.S. persons or within the United States, unless authorized by the Office of Foreign Assets Control (OFAC) or exempted by statute. Entities owned or controlled by a U.S. person and established outside the United States are also subject to these regulations.

  • Key points:
    • Prohibition on most direct or indirect transactions with Iran
    • Authorization required from OFAC or exemption through statute
    • Entities owned or controlled by U.S. persons subject to regulations

Recent Sanctions Actions

Since February 2017, the Office of Foreign Assets Control (OFAC) has issued numerous rounds of designations targeting over 1,000 persons, aircraft, and vessels in connection with various activities, including:

  • Iran’s support for terrorism
  • Ballistic missile program
  • WMD proliferation
  • Cyberattacks
  • Transnational criminal activity
  • Censorship
  • Human rights abuses

Recent Designations

In June 2019, OFAC imposed sanctions on IRGC-related targets, including:

  • Eight senior commanders of the Navy, Aerospace, and Ground Forces of the IRGC
  • South Wealth Resources Company (SWRC), an Iraq-based IRGC-QF financial conduit
  • Persian Gulf Petrochemical Industries Company (PGPIC) and its subsidiary petrochemical companies and foreign-based sales agents

Background on Iran’s Sanctions

The United States re-imposed sanctions that were lifted or waived under the Joint Comprehensive Plan of Action (JCPOA) in November 2018. OFAC has issued numerous designations associated with Iran’s ballistic missile program, including entities involved in the development and production of missiles.

  • Key points:
    • Re-imposition of sanctions on JCPOA
    • Designations related to Iran’s ballistic missile program