Licensing for Iran Inheritances
The United States, aiming to isolate Iran, has imposed sanctions in response to Iran’s activities such as the development of its Nuclear Program, Uranium Enrichment, violations of International Agreements, active development of Ballistic Missiles, and support for Terrorist Organizations like Hezbollah and Hamas. These sanctions also address Iran’s Human Rights Violations, repression against its civilian population and Political Opponents, participation in Cyberattacks, and Disinformation Campaigns threatening U.S. security. These sanctions were implemented through Executive Orders (E.O.) issued under the authority granted by the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. §§ 1701-1707). U.S. sanctions against Iran are codified in 31 CFR Part 535, 560, 561, and 562.
Given the extensive U.S. sanctions programs, the following question remains pertinent: How can inheritance be transferred from Iran to the United States? It is crucial to distinguish between and understand that inheritance encompasses both movable and immovable property as well as financial assets. For example, the transfer of funds is possible if it is structured as a noncommercial Family Remittance, conditional upon obtaining a Special License from the Office of Foreign Assets Control (OFAC).
Can You Receive An Inheritance From Iran?
Receiving an inheritance from Iran is possible with the necessary permits. According to OFAC requirements, transactions related to Iranian inheritance are accessible to certain categories of individuals. In light of the Iranian Transaction Regulations (see 31 CFR Part 560), inheritance is listed among the restricted types of authorized activities. For this reason, specific personal, noncommercial monetary transfers to and from Iran are permitted in the following situations:
A personal, non-commercial money transfer is made on behalf of an individual residing in Iran. Exceptions are individuals whose assets have been blocked under 31 CFR Part 560. The transfer must be processed by a U.S. Depository Institution or a BrokerDealer registered in the United States.
A non-commercial transfer that is not considered a charitable donation for certain organizations, as well as transfers for business support (e.g., for running a family business). All donations to legal entities in Iran require an OFAC license.
Individuals holding U.S. Citizenship may conduct non-commercial, personal money transfers according to the above two points. Such individuals may transfer funds to Iranian citizens or individuals residing in Iran, except in cases where the individual’s assets are blocked (pursuant to 31 CFR Part 560). However, the transfer must be made solely on behalf of a U.S. citizen and not on behalf of other participants in the process.
According to 31 CFR Part 560, direct bank transfers from Iranian banks to U.S. banks are prohibited. Transactions from Iranian financial institutions are permitted.
How To Receive An Inheritance From Iran?
Due to existing sanctions against Iran, direct banking operations between Iranian and U.S. financial institutions are prohibited. Consequently, authorized transfers require assistance from a Third Country to act as an Intermediary.
Initially, it is necessary to review the Specially Designated Nationals and Blocked Persons List (SDN). Verify the presence or absence of all individuals and organizations involved in financial operations and related to inheritance on this list.
The specific transfer method depends on the nature of the Inherited Assets. For example, in some situations, it is necessary to provide the Intermediary Bank with all required information beforehand. For planned transactions, three or more banking entities are often used.
To freely dispose of Inherited Property (e.g., sale), a Special License from OFAC is necessary. This “permit” grants the right to manage the property in Iran at one’s discretion. Qualified OFAC Lawyers are experts in the field and are ready to provide professional support and assistance in applying for an OFAC License.
How to Inherit Property in Iran?
To inherit property in Iran, it is essential to seek Legal Assistance and Consultation. Sanctions Lawyers will explain in detail all the current, effective sanctions against Iran and the importance of obtaining an OFAC Special License. The chances of successfully obtaining this License are higher with an experienced Attorney.
To apply for an OFAC Special License, it is necessary to provide all required documents and attach reasoned arguments in favor of the transaction. During the consideration of such a petition, OFAC may request additional documents or information.
Remember that the presence of an OFAC License is a crucial step in managing Inherited Property. Otherwise, you are prohibited from selling the property or hiring another person in Iran to manage it on your behalf. As a result, hiring an Appraiser, Real Estate Agent, or Attorney to facilitate the sale is prohibited. If you plan to hire these Professionals in the future, information about them must be included in the application for an OFAC Special License.
Why Should You Hire a Lawyer to Inherit Property in Iran?
The rules regarding Iranian Transactions and Inheritance of certain properties, considering all sanctions, are extensive and complex. Each case is unique, depending on various nuances and details. To consider all applicable sanctions and penalties from OFAC and to avoid serious mistakes when applying for an OFAC Special License, Legal Assistance is necessary.
If you encounter issues, our Lawyers are ready to offer their help and services. Our sanctions lawyers are prepared to develop individualized strategies to protect the Rights, Interests, and Freedoms of each Client. We assist Clients in obtaining OFAC Licenses for conducting various transactions and managing their property legally, despite the list of existing U.S. sanctions.
