• OFAC Adds Bans on U.S. Subsidiaries to Iran Sanctions Regulations
  • January 7, 2013 | Authors: David A. Higbee; William F. Young
  • Law Firm: Hunton & Williams LLP - Washington Office
  • In a Federal Register notice dated December 26, the Office of Foreign Assets Control (OFAC) of the Dept. of the Treasury updated its regulations to include prohibitions on foreign subsidiaries of U.S. corporations from doing business with Iran. 77 F.R. 75848. The amended regulations also make clear that penalties for trading with Iran by a foreign subsidiary can be imposed on its U.S. parent. Such penalties will not be applied if the U.S. parent divests or terminates its business with the foreign entity not later than February 6, 2013. The amendments also incorporate expansions of the Specially Designated Nationals list (SDN).