This Monday, February 6, 2012, President Obama signed a new Executive Order (“Executive Order”) blocking the property and interests in property of the Government of Iran and Iranian financial institutions. The Executive Order requires U.S. persons to block all property and interests in property of: (i) the Government of Iran; (ii) all Iranian financial institutions, and (iii) all persons determined by the Secretary of the Treasury to be owned by, controlled by, or acting for or on behalf of, any of those parties, when that property comes within the United States or within the possession or control of U.S. persons.
The Executive Order defines the term “Government of Iran” as the Government of Iran, any political subdivision, agency or instrumentality thereof, including the Central Bank of Iran, and any person owned or controlled by, or acting for or on behalf of, the Government of Iran. The term “Iranian financial institution” means a financial institution organized under the laws of Iran or any jurisdiction within Iran (including foreign branches), any financial institution in Iran, any financial institution, wherever located, owned or controlled by the Government of Iran, and any financial institution, wherever located, owned or controlled by any of the foregoing.
Previously, under the Iranian Transactions Regulations, U.S. financial institutions receiving instructions to execute transactions involving the Government of Iran were not required to block the transactions, but were only required to reject those instructions (unless the transactions were exempt or otherwise authorized by OFAC). Pursuant to the Executive Order, transactions involving the Government of Iran or Iranian financial institutions must now be blocked unless such transactions are exempt or authorized by OFAC.
Read a complete copy of the Executive Order 13599: Blocking property of the government of Iran and Iranian financial institutions (February 5, 2012)
For more information, please contact the authors: Clemente Vazquez-Bello, Andres A. Fernandez, Marina Olman and Gabriel Caballero
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This publication is for general information only.It is not legal advice, and legal counsel should be contacted before any action is taken which might be influenced by this publication. Established in 1925, Gunster Yoakley is one of Florida’s oldest and largest full-service law firms. Its substantial and diversified practice serves an extensive client base of international, national and local businesses, institutions, local governments and prominent individuals. The firm maintains a strong presence in Florida with offices in Fort Lauderdale, Miami, Palm Beach, Stuart, Vero Beach, West Palm Beach, Jacksonville, Tallahassee, and Tampa. Gunster Yoakley is home to more than 180 attorneys and 329 employees, providing counsel to clients through 18 practice groups including corporate, immigration, employment, technology and emerging companies, tax, banking and financial services, real estate, land use and environmental, business litigation, and private wealth services. |
