Understanding Iran OFAC Regulations
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) enforces economic and trade sanctions against targeted foreign countries and regimes, including Iran. Under the Iranian Transactions and Sanctions Regulations (ITSR), 31 C.F.R. Part 560, U.S. persons are generally prohibited from directly or indirectly exporting, re-exporting, selling, or supplying goods, services, or technology to Iran.
“U.S. persons” include:
- U.S. citizens
- U.S. lawful permanent residents (green card holders)
- Entities organized under U.S. law, including their foreign branches
Many actions—such as maintaining Iranian bank accounts, receiving inheritances, or transferring money—require an OFAC license (either specific or general) or must qualify for a valid exemption.
Due to the complexity of OFAC regulations, as well as overlapping issues under the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws, individuals are strongly encouraged to seek guidance from both an OFAC license and an international tax CPA before initiating any related transactions.
Informational Resources
For general background and updates on OFAC regulations and related tax matters, please refer to the following:
- OFAC Frequently Asked Questions and Answers (FAQ)
- What is OFAC Voluntary Self-Disclosure?
- Tax Implication of Money Transfer from Iran
- Taxation of Persian Americans Living in Iran
- OFAC Cryptocurrency Guidance Brochure
- OFAC Frequently Asked Questions on Cryptocurrency
- Iran Nuclear Talks To Resume On November 29th
- Iran Nuclear Deal (BARJAM) Update
Legal and Tax Services Related to Iran OFAC Transactions
At Zaher Fallahi, CPA, we provide comprehensive legal and tax counsel related to Iran OFAC matters, including:
- Obtaining Iran-related Specific OFAC Licenses
- Advising on legal money transfers from Iran in compliance with OFAC
- Guidance on AML and BSA regulatory requirements
- Tax and legal implications of funds received from Iran (gifts, inheritances, property sales)
- Strategic defense in matters involving potential OFAC violations
- Consultation on cryptocurrency-related OFAC issues