Sending money to/from Iran
The Office of Foreign Assets Control (OFAC), a division of the U.S. Department of the Treasury, enforces a comprehensive set of sanctions on Iran. These sanctions aim to pressure Iran to curtail its nuclear program, halt its support for terrorism, and improve its human rights record. The sanctions are designed to limit Iran’s access to the global financial system and restrict its economic activities.
As we know, the transfer of money from Iran to the USA and Europe faces significant challenges due to international sanctions on Iran. Foreign banks are reluctant to collaborate with Iranian banks to avoid sanctions, which complicates financial transactions. As a result, individuals looking to transfer money from Iran must seek alternative methods instead of relying on traditional bank transfers.
How to Transfer Money from Iran
Transferring money from Iran to the United States, or vice versa, involves navigating a complex web of regulations designed to comply with U.S. sanctions. Direct banking relationships between U.S. and Iranian banks are prohibited, necessitating the use of alternative methods such as third-country intermediaries or obtaining special licenses from the Office of Foreign Assets Control (OFAC).
To initiate a transfer, individuals and businesses must first identify if their transaction falls under any existing general licenses issued by OFAC. These licenses cover specific types of transactions, such as personal remittances and humanitarian aid, which are pre-authorized under certain conditions. If the transaction does not fall under a general license, a specific license application must be submitted to OFAC. This application requires detailed information about the nature of the transaction, the parties involved, and the measures in place to ensure compliance with U.S. regulations.
Cases related to Iran sanctions and money transfer to or from Iran is not an easy task and it requires experienced attorneys, who can guide you through the process and provide legal assistance. OFAC attorneys at Sanctions Lawyers are legal professionals who can offer invaluable guidance on OFAC compliance issues and provide crucial assistance throughout the license application process.
Regulations of Money Transfer from Iran
Due to the stringent sanctions imposed by the United States on Iranian banks, direct money transfers through these financial institutions are currently not feasible. Additionally, when engaging in currency transfers, there are specific regulations in place within the United States. One such requirement is that the Office of Foreign Assets Control (OFAC) must grant a license for these transfers to take place.
The OFAC’s General License
General licenses issued by the Office of Foreign Assets Control (OFAC) allow certain transactions with Iran without requiring specific authorization. These licenses cover several personal and non-commercial activities, including:
- selling property acquired before immigrating to the U.S.;
- selling inherited property in Iran;
- transferring inherited money and cash;
- transferring monetary gifts to individuals in Iran;
- receiving immovable property as a gift in Iran.
For transactions permitted under OFAC’s general licenses, no additional actions or notifications to U.S. organizations are required. Funds can be transferred through an exchange, with deposits made from a non-U.S. bank. While banks may initially restrict access to received funds and request explanations, transactions covered by general licenses should not face long-term difficulties.
To facilitate smooth transfers, parties should be prepared to provide clear documentation demonstrating the nature of the transaction. This helps ensure compliance and expedites the process.
Personal remittances between Iran and the U.S., including family inheritances, are also covered by an OFAC general license. However, these must be non-commercial and cannot include charitable donations. It’s crucial to verify that no individuals or banks involved in the transaction are on OFAC’s Specially Designated Nationals (SDN) list or affiliated with the Iranian government. Compliance requires routing inheritances through a bank in a third country.
The OFAC’s Special License
Special licenses are designed for transactions not covered by general licenses, providing case-by-case authorization for activities that align with U.S. foreign policy objectives while ensuring compliance with sanctions regulations. Special License can be granted in the following cases:
- Selling the property acquired subsequent to immigrating to America.
- Transferring ownership of buildings constructed after immigrating to America.
- Receiving movable property as a gift within Iran.
- Engaging in business sales within Iran.
- Holding a bank account with any Iranian financial institution.
- Closing an individual’s bank account in Iran and transferring the funds held in the account.
- Purchasing any new movable and immovable property in Iran.
It’s important to note that obtaining a special license does not guarantee approval for future similar transactions. Each application is evaluated on its own merits, and licenses are typically issued for a specific duration or set of transactions.
For expert guidance and support in obtaining an OFAC special license for transferring money to or from Iran, contact our experienced legal team today. We are dedicated to helping you navigate the complexities of U.S. sanctions and ensuring your transactions are compliant and successful.
Transferring Money from Iran with Cryptocurrency
Cryptocurrency is an alternative method for transferring money from Iran. While it offers a degree of anonymity and circumvents traditional banking channels, it is not without risks. OFAC has issued guidance on the use of digital currencies, emphasizing that transactions involving sanctioned entities or individuals remain prohibited. Therefore, those considering cryptocurrency for money transfers must ensure compliance with all applicable regulations to avoid potential penalties.
Contact OFAC License Lawyer
For those dealing with the complexities of OFAC regulations expert legal assistance is essential. Our team of OFAC lawyers is dedicated to providing comprehensive guidance and support to ensure compliance with U.S. sanctions and regulatory requirements. Our firm specializes in OFAC representation and enforcement, providing the expertise needed to handle these intricate legal matters effectively.
For expert guidance and support in obtaining an OFAC special license, contact our experienced legal team today.
