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On April 16, 2015, the Department of State published in the Federal Register a notice [Public Notice: 9095] that outlines the U.S. Government (USG) actions taken to extend certain sanctions relief under the National Defense Authorization Act for Fiscal Year 2012 (NDAA) as part of the Joint Plan of Action (JPOA), that halts progress on Iran’s nuclear program and rolls it back in key respects in exchange limited, temporary, and targeted sanctions relief to Iran by the P5+1 countries (U.S., France, the United Kingdom, Russia, China, and Germany).
The JPOA was renewed by mutual consent of the P5 + 1 and Iran on July 19, 2014, and again on November 24, 2014, extending the temporary sanctions relief provided under the JPOA to cover the period beginning on November 24, 2014, and ending June 30, 2015 (the Extended JPOA Period), in order to continue negotiations aimed at achieving a long-term comprehensive solution to ensure that Iran’s nuclear program will be exclusively peaceful.
Sanctions suspended under the NDAA are scheduled to resume on July 1, 2015 unless further action is taken by the P5+1 and Iran and subsequent waivers are issued by the USG. Companies engaging in activities covered by the temporary sanctions relief described below should expect sanctions to apply to any activities that extend beyond the current end date of the Extended JPOA Period, June 30, 2015. The temporary suspension of sanctions applies only to activities that begin and end during the period January 20, 2014 to June 30, 2015.
The Secretary of State in the national security interest of the United States waived the imposition of sanctions with respect to:
(1) foreign financial institutions under the primary jurisdiction of China, India, Japan, the Republic of Korea, the authorities on Taiwan, and Turkey, subject to the following conditions:
a. this waiver shall apply to a financial transaction only for trade in goods and services between Iran and the country with primary jurisdiction over the foreign financial institution involved in the financial transaction (but shall not apply to any transaction for the sale, supply, or transfer to Iran of precious metals involving funds credited to an account described in paragraph (b));
b. any funds owed to Iran as a result of such trade shall be credited to an account located in the country with primary jurisdiction over the foreign financial institution involved in the financial transaction; and
c. with the exception that certain foreign financial institutions notified directly in writing by the USG may engage in financial transactions with the Central Bank of Iran (CBI) in connection with the repatriation of revenues and the establishment of a financial channel, to the extent specifically provided for in the JPOA of November 24, 2013, as extended; and
(2) foreign financial institutions under the primary jurisdiction of Switzerland that are notified directly in writing by the USG, to the extent necessary for such foreign financial institutions to engage in financial transactions with the CBI: (i) within the scope of the waiver of Sections 1245(a)(1) and 1245(c) of the Iran Freedom and Counter Proliferation Act of 2012 (subtitle D of title XXI of Public Law 112-239, 22 U.S.C 8801 et seq.)(IFCA) issued on November 25, 2014 and any extension of that waiver; and (ii) in connection with the repatriation of revenues and the establishment of a financial channel as specifically provided for in the JPOA of November 24, 2013, as extended.
(3) Foreign financial institutions under the primary jurisdiction of Oman that are notified directly in writing by the USG, to the extent necessary for such foreign financial institutions to engage in financial transactions with the CBI in connection with the repatriation of revenues and the establishment of a financial channel as specifically provided for in the JPOA of November 24, 2013, as extended; and
(4) Foreign financial institutions under the primary jurisdiction of South Africa subject to the following conditions:
a. this waiver shall apply to a financial transaction only for trade in goods and services between Iran and South Africa (but shall not apply to any transaction for the purchase of crude oil from Iran or any transaction for the sale, supply, or transfer to Iran of precious metals involving funds credited to an account described in paragraph (b));
b. any funds owed to Iran as a result of such trade shall be credited to an account located in South Africa; and
c. with the exception of certain foreign financial institutions notified directly in writing by the USG to the extent necessary for such financial institutions to engage in financial transactions with the CBI within the scope of the waiver of Sections 1245(a)(1) and 1245(c) of IFCA issued on November 25, 2014 and any extension of that waiver.
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