Sending Money to Iran — Legal Guide
Sending money to Iran is possible under specific OFAC general licenses — primarily for personal remittances to family. Our lawyers explain exactly what is permitted, what is prohibited, and how to transfer funds to Iran in full legal compliance with OFAC regulations.
Iran money transfer cases are among the most technically complex areas of OFAC practice. The difference between a legal remittance and an OFAC violation can come down to a single party’s SDN status, the routing bank used, or a missing document. Our OFAC licensing lawyers have handled Iran-related remittances, estate transfers, business wind-downs, and specific license applications across dozens of cases.
We can help you:
- Determine whether your transfer qualifies under an existing general license
- Conduct full SDN screening of all parties in the transaction chain
- Draft and submit an OFAC specific license application
- Respond to OFAC supplemental information requests
- Advise on compliant routing through third-country financial institutions
- Handle OFAC enforcement defense if a violation has already occurred
Personal Remittances to Iran — What OFAC Allows
Under the Iran sanctions framework (31 CFR Part 560), OFAC has issued general licenses that automatically authorize personal remittances without requiring individual applications. These are among the few types of transfers that U.S. persons can legally make to Iran without a specific license. Here is what qualifies:
What Counts as a Personal Remittance
A personal remittance under OFAC rules is a non-commercial transfer of funds to a close family member in Iran intended for personal or household expenses. This includes:
- Monthly family support payments (living expenses, medical care, education)
- One-time monetary gifts for personal use
- Funds for family members’ travel outside Iran
- Inherited cash or funds from the sale of property acquired before the sender immigrated to the United States
- Proceeds from selling inherited property in Iran (where no SDN-listed party is involved)
What Is Not Covered by the General License
The general license for personal remittances does not cover:
- Any transfer that benefits the Iranian government, state-owned entities, or the Central Bank of Iran
- Transfers to individuals or entities on OFAC’s SDN list
- Charitable donations (these require a separate specific license)
- Business-related transfers, even to family members who operate businesses
- Payments for real estate purchased after the sender moved to the United States
The SDN Check: Non-Negotiable
Before any transfer — even a personal remittance — you must verify that no party involved (sender, recipient, intermediary bank) appears on OFAC’s Specially Designated Nationals (SDN) list. A single SDN-listed intermediary bank in the chain can make an otherwise-legal transfer illegal. Our attorneys conduct full SDN screening as part of any Iran transfer consultation. Learn more about SDN list removal if a party has been designated.
How Routing Works: Third-Country Banks
Direct transfers between U.S. banks and Iranian banks are prohibited. Even if your transfer is authorized under a general license, it must route through a bank in a third country — typically Turkey, UAE, or an EU country — that maintains correspondent banking relationships with Iran. U.S. financial institutions are prohibited from processing such transactions directly. This routing complexity is why even fully legal remittances often require legal guidance.
How to Get an OFAC License for Iran Transfers
When your transfer falls outside the automatic general license categories — commercial transactions, post-immigration property sales, large estate transfers, or any payment involving unique circumstances — you must apply for an OFAC-specific license (also called a “specific license” or “special license”). Here is how the process works:
Step 1: Determine Whether a Specific License Is Required
Start by checking whether your transaction is already covered by a general license under 31 CFR Part 560. Many personal remittances and humanitarian transfers do not require a separate application. However, if your transfer involves:
- Property purchased in Iran after immigrating to the United States
- Business transactions or commercial payments
- Movable property received as a gift in Iran
- Closing a bank account in Iran and transferring the balance
- Any transaction involving a blocked entity or unusual party structure
…you will need a specific license from OFAC.
Step 2: Prepare Your Application
OFAC specific license applications are submitted through the agency’s online portal (ofac.treasury.gov). A complete application includes:
- Full identification of all parties (sender, recipient, financial institutions)
- Detailed description of the transaction, purpose, and dollar amount
- Supporting documents (contracts, estate documents, property records, bank statements)
- Legal basis for why the transaction should be authorized
- Compliance certifications confirming no SDN involvement
Incomplete or poorly documented applications are routinely denied. An experienced OFAC licensing attorney significantly increases your approval rate by framing the application correctly and anticipating OFAC’s review criteria.
Step 3: OFAC Review Timeline
OFAC does not publish fixed processing times. Simple cases involving personal remittances or estate matters may be resolved in 4–8 weeks. Complex commercial transactions or cases involving parties with any SDN proximity can take several months. OFAC may request additional documentation (“supplemental information request”) during review, which extends the timeline.
Step 4: Compliance After Approval
An approved specific license is not a blank check. It authorizes a specific transaction under specified conditions. You must comply with all license terms, maintain records of the transaction for at least 5 years (OFAC record retention requirement), and report the transaction if required. Violating license conditions is itself an OFAC violation.
Which Services Can Send Money to Iran?
This is the most common practical question — and the answer is complicated. Major money transfer operators are generally not available for Iran transfers due to the broad U.S. sanctions framework.
Western Union, Wise, and Remitly
Western Union, Wise, and Remitly do not offer direct transfers to Iran from the United States. All three are U.S.-regulated entities and cannot process Iran transfers without an OFAC export service license under 31 CFR § 560.418. None of these companies currently hold such licenses for personal remittances to Iran. If you see third-party services claiming to facilitate transfers through these platforms to Iran, treat this as a significant compliance red flag.
Third-Country Intermediary Banks and Exchange Offices
The most common legal mechanism for personal remittances to Iran involves:
- Third-country exchange houses in Turkey, UAE, or EU countries that are authorized to receive USD and convert to Iranian rial (IRR) for delivery to recipients in Iran
- Iranian exchange offices abroad — some operate legally in countries with active banking ties to Iran, though vetting is critical
- Correspondent banking through non-U.S. financial institutions — a U.S. person sends funds to a non-U.S. bank account, which then routes to Iran via an authorized Iranian bank not on the SDN list
The key compliance requirement: no U.S. financial institution may directly process the Iran-side of the transaction. The routing must stay outside the U.S. financial system once funds exit the sender’s account.
Hawala and Informal Transfers
Hawala networks are widely used for Iran remittances, but their legal status is precarious. Under 31 CFR §§ 560.204 and 560.206, U.S. persons are prohibited from exporting financial services to Iran without OFAC authorization — and hawala operators who lack licenses are providing unauthorized financial services. While hawala may seem practical, it exposes U.S. senders to significant enforcement risk. OFAC has actively pursued enforcement actions against unlicensed informal value transfer operators. A specific OFAC license is required to use a hawala network for Iran transfers legally, and approvals are rare.
Cryptocurrency Transfers
Cryptocurrency is not a sanctions workaround. OFAC has explicitly stated that sanctions prohibitions apply equally to digital currency transactions. If you transfer crypto to a wallet controlled by a sanctioned Iranian entity or individual, you are in violation regardless of the payment method. OFAC actively monitors blockchain activity and has sanctioned crypto addresses tied to Iranian entities. Using crypto for Iran transfers without a specific OFAC license carries the same legal exposure as any other unauthorized transfer.
Penalties for Illegal Transfers to Iran
OFAC Iran sanctions violations carry severe consequences. Under IEEPA and ITSR:
- Civil penalties: Up to $1,000,000+ per violation or twice the transaction value (whichever is greater)
- Criminal penalties: Up to 20 years imprisonment and $1,000,000 in fines per violation
- Corporate liability: Financial institutions that process unauthorized Iran transfers face penalties, license revocations, and reputational damage
- No intent requirement for civil violations: OFAC can impose civil penalties even for “good faith” transfers that technically violate the rules
OFAC issued 14 enforcement actions in 2025, with Iran-related cases consistently among the highest-value penalties. Voluntary self-disclosure of violations typically results in significantly reduced penalties — another reason to consult an attorney before and after any Iran transfer.
Need Help With an OFAC License for Iran?
Iran money transfer cases are among the most technically complex areas of OFAC practice. The difference between a legal remittance and an OFAC violation can come down to a single party’s SDN status, the routing bank used, or a missing document. Our OFAC licensing lawyers have handled Iran-related remittances, estate transfers, business wind-downs, and specific license applications across dozens of cases.
We can help you:
- Determine whether your transfer qualifies under an existing general license
- Conduct full SDN screening of all parties in the transaction chain
- Draft and submit an OFAC specific license application
- Respond to OFAC supplemental information requests
- Advise on compliant routing through third-country financial institutions
- Handle OFAC enforcement defense if a violation has already occurred
Key Legal Options at a Glance
- Personal remittances to family — Permitted under OFAC General License (31 CFR § 560.550). No fixed dollar cap, but no commercial purpose allowed.
- Humanitarian transfers — Authorized for food, medicine, and personal medical expenses under separate GL provisions.
- Inherited funds and property proceeds — Permitted via GL when no SDN-listed parties are involved; must route through a third-country bank.
- Business payments, commercial transfers — Prohibited unless you hold an OFAC-specific license.
- All transfers — Must bypass SDN-listed individuals and entities, Iranian government bodies, and the Central Bank of Iran.
Legal vs. Illegal: Iran Money Transfers at a Glance
| Transaction Type | Legal Status | Authorization Required | Risk Level |
|---|---|---|---|
| Personal remittances to close family | ✅ Legal | General License (automatic) | Low if documented |
| Monetary gifts to individuals (non-commercial) | ✅ Legal | General License (automatic) | Low if documented |
| Humanitarian transfers (food, medicine) | ✅ Legal | General License (automatic) | Low |
| Inherited funds / property proceeds | ⚠️ Conditional | General License; no SDN parties | Medium — verify all parties |
| Property sold after immigrating to USA | ⚠️ Specific License | Specific OFAC license required | High without license |
| Business payments to Iranian companies | ❌ Prohibited | Specific license (rarely granted) | Very High |
| Payments to Iranian government entities | ❌ Prohibited | Not licensable in most cases | Critical |
| Payments to SDN-listed individuals | ❌ Prohibited | Not licensable | Critical — criminal exposure |
| Hawala / informal transfers without OFAC license | ❌ Prohibited | Specific license required | Very High — active enforcement |
| Cryptocurrency transfers to sanctioned entities | ❌ Prohibited | Not licensable | Very High — OFAC tracks blockchain |
Personal Remittances to Iran — What OFAC Allows
Under the Iran sanctions framework (31 CFR Part 560), OFAC has issued general licenses that automatically authorize personal remittances without requiring individual applications. These are among the few types of transfers that U.S. persons can legally make to Iran without a specific license. Here is what qualifies:
What Counts as a Personal Remittance
A personal remittance under OFAC rules is a non-commercial transfer of funds to a close family member in Iran intended for personal or household expenses. This includes:
- Monthly family support payments (living expenses, medical care, education)
- One-time monetary gifts for personal use
- Funds for family members’ travel outside Iran
- Inherited cash or funds from the sale of property acquired before the sender immigrated to the United States
- Proceeds from selling inherited property in Iran (where no SDN-listed party is involved)
What Is Not Covered by the General License
The general license for personal remittances does not cover:
- Any transfer that benefits the Iranian government, state-owned entities, or the Central Bank of Iran
- Transfers to individuals or entities on OFAC’s SDN list
- Charitable donations (these require a separate specific license)
- Business-related transfers, even to family members who operate businesses
- Payments for real estate purchased after the sender moved to the United States
The SDN Check: Non-Negotiable
Before any transfer — even a personal remittance — you must verify that no party involved (sender, recipient, intermediary bank) appears on OFAC’s Specially Designated Nationals (SDN) list. A single SDN-listed intermediary bank in the chain can make an otherwise-legal transfer illegal. Our attorneys conduct full SDN screening as part of any Iran transfer consultation. Learn more about SDN list removal if a party has been designated.
How Routing Works: Third-Country Banks
Direct transfers between U.S. banks and Iranian banks are prohibited. Even if your transfer is authorized under a general license, it must route through a bank in a third country — typically Turkey, UAE, or an EU country — that maintains correspondent banking relationships with Iran. U.S. financial institutions are prohibited from processing such transactions directly. This routing complexity is why even fully legal remittances often require legal guidance.
How to Get an OFAC License for Iran Transfers
When your transfer falls outside the automatic general license categories — commercial transactions, post-immigration property sales, large estate transfers, or any payment involving unique circumstances — you must apply for an OFAC-specific license (also called a “specific license” or “special license”). Here is how the process works:
Step 1: Determine Whether a Specific License Is Required
Start by checking whether your transaction is already covered by a general license under 31 CFR Part 560. Many personal remittances and humanitarian transfers do not require a separate application. However, if your transfer involves:
- Property purchased in Iran after immigrating to the United States
- Business transactions or commercial payments
- Movable property received as a gift in Iran
- Closing a bank account in Iran and transferring the balance
- Any transaction involving a blocked entity or unusual party structure
…you will need a specific license from OFAC.
Step 2: Prepare Your Application
OFAC specific license applications are submitted through the agency’s online portal (ofac.treasury.gov). A complete application includes:
- Full identification of all parties (sender, recipient, financial institutions)
- Detailed description of the transaction, purpose, and dollar amount
- Supporting documents (contracts, estate documents, property records, bank statements)
- Legal basis for why the transaction should be authorized
- Compliance certifications confirming no SDN involvement
Incomplete or poorly documented applications are routinely denied. An experienced OFAC licensing attorney significantly increases your approval rate by framing the application correctly and anticipating OFAC’s review criteria.
Step 3: OFAC Review Timeline
OFAC does not publish fixed processing times. Simple cases involving personal remittances or estate matters may be resolved in 4–8 weeks. Complex commercial transactions or cases involving parties with any SDN proximity can take several months. OFAC may request additional documentation (“supplemental information request”) during review, which extends the timeline.
Step 4: Compliance After Approval
An approved specific license is not a blank check. It authorizes a specific transaction under specified conditions. You must comply with all license terms, maintain records of the transaction for at least 5 years (OFAC record retention requirement), and report the transaction if required. Violating license conditions is itself an OFAC violation.
Which Services Can Send Money to Iran?
This is the most common practical question — and the answer is complicated. Major money transfer operators are generally not available for Iran transfers due to the broad U.S. sanctions framework.
Western Union, Wise, and Remitly
Western Union, Wise, and Remitly do not offer direct transfers to Iran from the United States. All three are U.S.-regulated entities and cannot process Iran transfers without an OFAC export service license under 31 CFR § 560.418. None of these companies currently hold such licenses for personal remittances to Iran. If you see third-party services claiming to facilitate transfers through these platforms to Iran, treat this as a significant compliance red flag.
Third-Country Intermediary Banks and Exchange Offices
The most common legal mechanism for personal remittances to Iran involves:
- Third-country exchange houses in Turkey, UAE, or EU countries that are authorized to receive USD and convert to Iranian rial (IRR) for delivery to recipients in Iran
- Iranian exchange offices abroad — some operate legally in countries with active banking ties to Iran, though vetting is critical
- Correspondent banking through non-U.S. financial institutions — a U.S. person sends funds to a non-U.S. bank account, which then routes to Iran via an authorized Iranian bank not on the SDN list
The key compliance requirement: no U.S. financial institution may directly process the Iran-side of the transaction. The routing must stay outside the U.S. financial system once funds exit the sender’s account.
Hawala and Informal Transfers
Hawala networks are widely used for Iran remittances, but their legal status is precarious. Under 31 CFR §§ 560.204 and 560.206, U.S. persons are prohibited from exporting financial services to Iran without OFAC authorization — and hawala operators who lack licenses are providing unauthorized financial services. While hawala may seem practical, it exposes U.S. senders to significant enforcement risk. OFAC has actively pursued enforcement actions against unlicensed informal value transfer operators. A specific OFAC license is required to use a hawala network for Iran transfers legally, and approvals are rare.
Cryptocurrency Transfers
Cryptocurrency is not a sanctions workaround. OFAC has explicitly stated that sanctions prohibitions apply equally to digital currency transactions. If you transfer crypto to a wallet controlled by a sanctioned Iranian entity or individual, you are in violation regardless of the payment method. OFAC actively monitors blockchain activity and has sanctioned crypto addresses tied to Iranian entities. Using crypto for Iran transfers without a specific OFAC license carries the same legal exposure as any other unauthorized transfer.
Penalties for Illegal Transfers to Iran
OFAC Iran sanctions violations carry severe consequences. Under IEEPA and ITSR:
- Civil penalties: Up to $1,000,000+ per violation or twice the transaction value (whichever is greater)
- Criminal penalties: Up to 20 years imprisonment and $1,000,000 in fines per violation
- Corporate liability: Financial institutions that process unauthorized Iran transfers face penalties, license revocations, and reputational damage
- No intent requirement for civil violations: OFAC can impose civil penalties even for “good faith” transfers that technically violate the rules
OFAC issued 14 enforcement actions in 2025, with Iran-related cases consistently among the highest-value penalties. Voluntary self-disclosure of violations typically results in significantly reduced penalties — another reason to consult an attorney before and after any Iran transfer.
Need Help With an OFAC License for Iran?
Iran money transfer cases are among the most technically complex areas of OFAC practice. The difference between a legal remittance and an OFAC violation can come down to a single party’s SDN status, the routing bank used, or a missing document. Our OFAC licensing lawyers have handled Iran-related remittances, estate transfers, business wind-downs, and specific license applications across dozens of cases.
We can help you:
- Determine whether your transfer qualifies under an existing general license
- Conduct full SDN screening of all parties in the transaction chain
- Draft and submit an OFAC specific license application
- Respond to OFAC supplemental information requests
- Advise on compliant routing through third-country financial institutions
- Handle OFAC enforcement defense if a violation has already occurred
Sending money to Iran is legally possible under specific OFAC general licenses — but navigating the rules requires precision. Under 31 CFR Part 560 (Iranian Transactions and Sanctions Regulations), U.S. persons may send personal remittances to family members in Iran without a specific license. Business transfers, payments to government entities, and transactions involving SDN-listed parties remain strictly prohibited. This guide explains exactly what is allowed, what is not, and when you need an OFAC license to proceed.
Quick Answer: Can You Legally Send Money to Iran?
Key Legal Options at a Glance
- Personal remittances to family — Permitted under OFAC General License (31 CFR § 560.550). No fixed dollar cap, but no commercial purpose allowed.
- Humanitarian transfers — Authorized for food, medicine, and personal medical expenses under separate GL provisions.
- Inherited funds and property proceeds — Permitted via GL when no SDN-listed parties are involved; must route through a third-country bank.
- Business payments, commercial transfers — Prohibited unless you hold an OFAC-specific license.
- All transfers — Must bypass SDN-listed individuals and entities, Iranian government bodies, and the Central Bank of Iran.
Legal vs. Illegal: Iran Money Transfers at a Glance
| Transaction Type | Legal Status | Authorization Required | Risk Level |
|---|---|---|---|
| Personal remittances to close family | ✅ Legal | General License (automatic) | Low if documented |
| Monetary gifts to individuals (non-commercial) | ✅ Legal | General License (automatic) | Low if documented |
| Humanitarian transfers (food, medicine) | ✅ Legal | General License (automatic) | Low |
| Inherited funds / property proceeds | ⚠️ Conditional | General License; no SDN parties | Medium — verify all parties |
| Property sold after immigrating to USA | ⚠️ Specific License | Specific OFAC license required | High without license |
| Business payments to Iranian companies | ❌ Prohibited | Specific license (rarely granted) | Very High |
| Payments to Iranian government entities | ❌ Prohibited | Not licensable in most cases | Critical |
| Payments to SDN-listed individuals | ❌ Prohibited | Not licensable | Critical — criminal exposure |
| Hawala / informal transfers without OFAC license | ❌ Prohibited | Specific license required | Very High — active enforcement |
| Cryptocurrency transfers to sanctioned entities | ❌ Prohibited | Not licensable | Very High — OFAC tracks blockchain |
Personal Remittances to Iran — What OFAC Allows
Under the Iran sanctions framework (31 CFR Part 560), OFAC has issued general licenses that automatically authorize personal remittances without requiring individual applications. These are among the few types of transfers that U.S. persons can legally make to Iran without a specific license. Here is what qualifies:
What Counts as a Personal Remittance
A personal remittance under OFAC rules is a non-commercial transfer of funds to a close family member in Iran intended for personal or household expenses. This includes:
- Monthly family support payments (living expenses, medical care, education)
- One-time monetary gifts for personal use
- Funds for family members’ travel outside Iran
- Inherited cash or funds from the sale of property acquired before the sender immigrated to the United States
- Proceeds from selling inherited property in Iran (where no SDN-listed party is involved)
What Is Not Covered by the General License
The general license for personal remittances does not cover:
- Any transfer that benefits the Iranian government, state-owned entities, or the Central Bank of Iran
- Transfers to individuals or entities on OFAC’s SDN list
- Charitable donations (these require a separate specific license)
- Business-related transfers, even to family members who operate businesses
- Payments for real estate purchased after the sender moved to the United States
The SDN Check: Non-Negotiable
Before any transfer — even a personal remittance — you must verify that no party involved (sender, recipient, intermediary bank) appears on OFAC’s Specially Designated Nationals (SDN) list. A single SDN-listed intermediary bank in the chain can make an otherwise-legal transfer illegal. Our attorneys conduct full SDN screening as part of any Iran transfer consultation. Learn more about SDN list removal if a party has been designated.
How Routing Works: Third-Country Banks
Direct transfers between U.S. banks and Iranian banks are prohibited. Even if your transfer is authorized under a general license, it must route through a bank in a third country — typically Turkey, UAE, or an EU country — that maintains correspondent banking relationships with Iran. U.S. financial institutions are prohibited from processing such transactions directly. This routing complexity is why even fully legal remittances often require legal guidance.
How to Get an OFAC License for Iran Transfers
When your transfer falls outside the automatic general license categories — commercial transactions, post-immigration property sales, large estate transfers, or any payment involving unique circumstances — you must apply for an OFAC-specific license (also called a “specific license” or “special license”). Here is how the process works:
Step 1: Determine Whether a Specific License Is Required
Start by checking whether your transaction is already covered by a general license under 31 CFR Part 560. Many personal remittances and humanitarian transfers do not require a separate application. However, if your transfer involves:
- Property purchased in Iran after immigrating to the United States
- Business transactions or commercial payments
- Movable property received as a gift in Iran
- Closing a bank account in Iran and transferring the balance
- Any transaction involving a blocked entity or unusual party structure
…you will need a specific license from OFAC.
Step 2: Prepare Your Application
OFAC specific license applications are submitted through the agency’s online portal (ofac.treasury.gov). A complete application includes:
- Full identification of all parties (sender, recipient, financial institutions)
- Detailed description of the transaction, purpose, and dollar amount
- Supporting documents (contracts, estate documents, property records, bank statements)
- Legal basis for why the transaction should be authorized
- Compliance certifications confirming no SDN involvement
Incomplete or poorly documented applications are routinely denied. An experienced OFAC licensing attorney significantly increases your approval rate by framing the application correctly and anticipating OFAC’s review criteria.
Step 3: OFAC Review Timeline
OFAC does not publish fixed processing times. Simple cases involving personal remittances or estate matters may be resolved in 4–8 weeks. Complex commercial transactions or cases involving parties with any SDN proximity can take several months. OFAC may request additional documentation (“supplemental information request”) during review, which extends the timeline.
Step 4: Compliance After Approval
An approved specific license is not a blank check. It authorizes a specific transaction under specified conditions. You must comply with all license terms, maintain records of the transaction for at least 5 years (OFAC record retention requirement), and report the transaction if required. Violating license conditions is itself an OFAC violation.
Which Services Can Send Money to Iran?
This is the most common practical question — and the answer is complicated. Major money transfer operators are generally not available for Iran transfers due to the broad U.S. sanctions framework.
Western Union, Wise, and Remitly
Western Union, Wise, and Remitly do not offer direct transfers to Iran from the United States. All three are U.S.-regulated entities and cannot process Iran transfers without an OFAC export service license under 31 CFR § 560.418. None of these companies currently hold such licenses for personal remittances to Iran. If you see third-party services claiming to facilitate transfers through these platforms to Iran, treat this as a significant compliance red flag.
Third-Country Intermediary Banks and Exchange Offices
The most common legal mechanism for personal remittances to Iran involves:
- Third-country exchange houses in Turkey, UAE, or EU countries that are authorized to receive USD and convert to Iranian rial (IRR) for delivery to recipients in Iran
- Iranian exchange offices abroad — some operate legally in countries with active banking ties to Iran, though vetting is critical
- Correspondent banking through non-U.S. financial institutions — a U.S. person sends funds to a non-U.S. bank account, which then routes to Iran via an authorized Iranian bank not on the SDN list
The key compliance requirement: no U.S. financial institution may directly process the Iran-side of the transaction. The routing must stay outside the U.S. financial system once funds exit the sender’s account.
Hawala and Informal Transfers
Hawala networks are widely used for Iran remittances, but their legal status is precarious. Under 31 CFR §§ 560.204 and 560.206, U.S. persons are prohibited from exporting financial services to Iran without OFAC authorization — and hawala operators who lack licenses are providing unauthorized financial services. While hawala may seem practical, it exposes U.S. senders to significant enforcement risk. OFAC has actively pursued enforcement actions against unlicensed informal value transfer operators. A specific OFAC license is required to use a hawala network for Iran transfers legally, and approvals are rare.
Cryptocurrency Transfers
Cryptocurrency is not a sanctions workaround. OFAC has explicitly stated that sanctions prohibitions apply equally to digital currency transactions. If you transfer crypto to a wallet controlled by a sanctioned Iranian entity or individual, you are in violation regardless of the payment method. OFAC actively monitors blockchain activity and has sanctioned crypto addresses tied to Iranian entities. Using crypto for Iran transfers without a specific OFAC license carries the same legal exposure as any other unauthorized transfer.
Penalties for Illegal Transfers to Iran
OFAC Iran sanctions violations carry severe consequences. Under IEEPA and ITSR:
- Civil penalties: Up to $1,000,000+ per violation or twice the transaction value (whichever is greater)
- Criminal penalties: Up to 20 years imprisonment and $1,000,000 in fines per violation
- Corporate liability: Financial institutions that process unauthorized Iran transfers face penalties, license revocations, and reputational damage
- No intent requirement for civil violations: OFAC can impose civil penalties even for “good faith” transfers that technically violate the rules
OFAC issued 14 enforcement actions in 2025, with Iran-related cases consistently among the highest-value penalties. Voluntary self-disclosure of violations typically results in significantly reduced penalties — another reason to consult an attorney before and after any Iran transfer.
Need Help With an OFAC License for Iran?
Iran money transfer cases are among the most technically complex areas of OFAC practice. The difference between a legal remittance and an OFAC violation can come down to a single party’s SDN status, the routing bank used, or a missing document. Our OFAC licensing lawyers have handled Iran-related remittances, estate transfers, business wind-downs, and specific license applications across dozens of cases.
We can help you:
- Determine whether your transfer qualifies under an existing general license
- Conduct full SDN screening of all parties in the transaction chain
- Draft and submit an OFAC specific license application
- Respond to OFAC supplemental information requests
- Advise on compliant routing through third-country financial institutions
- Handle OFAC enforcement defense if a violation has already occurred
Frequently Asked Questions
Is it legal to send money to Iran from the USA?
It depends on the purpose. OFAC’s General License D-2 permits personal remittances to family members in Iran. However, payments to the Iranian government, SDN-listed individuals, or for commercial purposes remain illegal. The rules are complex — consulting an OFAC lawyer before making transfers is strongly advised.
How much money can I send to Iran legally?
OFAC does not set a specific dollar cap on personal remittances under General License D-2, but transfers must be genuinely personal and cannot benefit the Iranian government or SDN-listed parties. Banks have their own compliance thresholds and may refuse even technically legal transfers.
Which money transfer services work for Iran?
Very few mainstream services support Iran transfers due to sanctions compliance risk. Western Union, Wise, Remitly, and PayPal do not support Iran. Some specialized regional remittance services operate in this space, but any service used must itself comply with OFAC regulations.
What is an OFAC specific license for Iran transfers?
If a transfer does not qualify under a general license, you can apply to OFAC for a specific license — a formal authorization for a particular transaction. Processing takes 1–6 months. An OFAC lawyer can significantly improve your application’s success rate and ensure proper documentation.
What are the penalties for illegally sending money to Iran?
Civil penalties can reach $311,562 per violation or twice the transaction value. Criminal penalties include fines up to $1 million and up to 20 years in prison. OFAC enforcement is active — multiple Iran sanctions enforcement actions occur each year. Voluntary self-disclosure significantly reduces penalties.