Additional Guidance Regarding U.S. Sanctions Relief On Transactions With Iran

1. Background

International sanctions against Iran refer to economic, trade, scientific and military sanctions that are imposed against parties seeking to transact or facilitate business involving Iran. The 2015 Joint Comprehensive Plan of Action (the "JCPOA"), signed between Iran and the international community, marked a turning point in this process. Under that arrangement, a substantial portion of restrictions against trade with and to Iran was lifted for non-US persons, including the so-called "secondary sanctions" imposed by the United States. Accordingly, non-US businesses, even those with substantial ties to US persons, are now given sufficient latitude to conduct trade and/or invest in Iran. Conversely, US persons remain subject to "primary sanctions" imposed by the United States Treasury's Office of Foreign Asset Control ("OFAC"), which means that US individuals, businesses and financial institutions continue to be broadly prohibited from engaging in or