IFCA / NDAA 2013: A potential expansion of US sanctions against Iran as of July 1, 2013
Declaring that Iran’s “energy, shipping, and shipbuilding sectors” and its ports are facilitating Iran’s nuclear proliferation activities, IFCA imposes sanctions directed against transactions benefitting those industries. This section presents perhaps the most significant aspect of IFCA insofar as marine transportation is concerned.
Specifically, IFCA imposes sanctions against any person who “sells, supplies, or transfers” to Iran “significant goods or services used in connection with the energy, shipping, or shipbuilding sectors of Iran”, which is defined to include NIOC, NITC, and IRISL.
Persons are also subject to having their property in the U.S. blocked (which includes wire transfers in U.S. dollars) if they provide “significant” financial, material, technological, or other support to, or goods or services in support of any activity or transaction on behalf of or for the benefit of any person determined to be a part of the energy, shipping, or shipbuilding sectors of Iran or determined to operate a port in Iran.
Members should be aware that US sanctions regime against Iran continues to develop, with additional measures being introduced from 1 July 2013 which may affect both US and non-US entities engaged in marine transportation and marine insurance.
The additional measures are contained in the "Iran Freedom and Counter-Proliferation Act of 2012" ("IFCA"), which forms a part of the National Defense Authorization Act for Fiscal Year 2013 ("NDAA 2013").
The International Group has also prepared a briefing note on the new measures which is attached below.