US Terminates All Remaining Sanctions Relief Under Iran Nuclear Deal

by Skadden, Arps, Slate, Meagher & Flom LLP

Skadden, Arps, Slate, Meagher & Flom LLP

On November 5, 2018, the United States reimposed all remaining nuclear-related sanctions against Iran that it had previously lifted in connection with its implementation of the Joint Comprehensive Plan of Action (JCPOA) in January 2016. Following the United States’ withdrawal from the JCPOA on May 8, 2018 (see our May 14, 2018, client alert), and pursuant to Executive Order (E.O.) 13846 issued by President Donald Trump on August 6, 2018 (see our August 28, 2018, client alert), all U.S. nuclear-related sanctions suspended under the JCPOA were scheduled to snap back after a 90-day wind-down period ending on August 6, 2018, or a 180-day wind-down period ending on November 4, 2018, depending on the specific sanctions. The Trump administration has signaled that it will fully enforce the sanctions that are now in effect. In a November 5, 2018, press release, the Treasury Department indicated that the Trump administration hopes to cut off the Iranian regime’s major sources of revenue to draw it back to the negotiating table and execute a more comprehensive agreement than the JCPOA.1

Wind-Down Authorization for Iran-Related Activities of Foreign Companies Owned or Controlled by US Persons Expires

On June 27, 2018, the Treasury Department’s Office of Foreign Assets Control (OFAC) revoked General License H, which had authorized non-U.S. entities owned or controlled by a U.S. person to engage in most activities with Iran not sanctionable for other non-U.S. entities. OFAC concurrently issued a general license to permit, through November 4, 2018, all activities ordinarily incident and necessary to the wind-down of transactions previously authorized under General License H. U.S.-owned or -controlled foreign entities are now prohibited from knowingly engaging in any transaction, directly or indirectly, involving Iran that would be prohibited by the Iranian Transactions and Sanctions Regulations (ITSR) if engaged in by a U.S. person or in the United States. Additionally, OFAC issued guidance indicating that U.S.-owned or -controlled foreign entities are required to apply restrictions akin to blocking on any property or interests in property of persons blocked pursuant to the ITSR.2 As was the case prior to the withdrawal from the JCPOA, any license or exception authorizing U.S. persons to engage in an activity also allows U.S.-owned or -controlled foreign entities to engage in that activity.

All Secondary Sanctions Fully Reimposed

The vast majority of U.S. sanctions lifted in January 2016 under the JCPOA were secondary sanctions, a set of measures that target non-U.S. persons engaged in certain activities involving Iran. (See our January 28, 2016, client alert.) The first tranche of secondary sanctions to snap back went into effect on August 7, 2018. The second — and final — set of secondary sanctions was reimposed on November 5, 2018. These sanctions target the following activities, entities or economic sectors:

  • Iran’s port operators, and shipping and shipbuilding sectors, including the Islamic Republic of Iran Shipping Lines (IRISL), South Shipping Lines Iran or their affiliates;
  • transactions with the National Iranian Oil Company, Naftiran Intertrade Company and National Iranian Tanker Company;
  • transactions by foreign financial institutions with the Central Bank of Iran (CBI) and designated Iranian financial institutions;
  • the provision of specialized financial messaging services to the CBI and Iranian financial institutions designated in connection with Iran’s proliferation of weapons of mass destruction or Iran’s support for international terrorism;3
  • the provision of underwriting services, insurance or reinsurance to Iran’s shipping, ports and petroleum sectors, and certain other sanctionable activities; and
  • Iran’s energy sector, including the purchase, acquisition, sale, transport or marketing of petroleum, petroleum products and petrochemical products from Iran.

The consequences for non-U.S. persons engaging in activities subject to secondary sanctions vary depending on the underlying authority. Secondary sanctions may require the imposition of blocking sanctions or authorize the president to select from a menu of sanctions. Moreover, foreign financial institutions engaging in certain activities subject to secondary sanctions may be prohibited from opening or maintaining correspondent or payable-through accounts, or may face strict conditions in maintaining such accounts at U.S. financial institutions.

Over 700 New SDNs, Including All Persons on the E.O. 13599 List

On November 5, 2018, OFAC moved all persons identified on the E.O. 13599 List (which was comprised of persons meeting the definition of the terms “Government of Iran” or “Iranian financial institution”) to the List of Specially Designated Nationals and Blocked Persons (SDN List), and OFAC removed the E.O. 13599 List from its website. OFAC also designated many Iranian financial institutions and other persons previously appearing on the E.O. 13599 List under other sanctions authorities, namely E.O. 13224 (relating to counterterrorism), E.O. 13382 (relating to weapons of mass destruction proliferation), and E.O. 13553 (relating to serious human rights abuses by the Government of Iran).

Going forward, persons engaged in significant transactions with individuals and entities moved from the E.O. 13599 List to the SDN List, other than nondesignated Iranian financial institutions, could be subject to secondary sanctions. Non-U.S. persons may, however, engage in business with Iranian financial institutions solely blocked pursuant to E.O. 13599 without becoming subject to secondary sanctions, unless other secondary sanctions apply or another person on the SDN List subject to secondary sanctions is involved in the transaction.4

In addition to moving hundreds of persons from the E.O. 13599 List to the SDN List, OFAC added several hundred additional persons to the SDN List. Many of these persons were previously on the SDN List prior to the JCPOA, such as IRISL, the Atomic Energy Organization of Iran, Iran Air, and their related parties, vessels and aircraft. However, OFAC also identified or designated numerous new Iranian financial institutions and other persons and added them to the SDN List. Transactions involving such persons (other than Iranian financial institutions blocked solely pursuant to E.O. 13599) now similarly present secondary sanctions risks.

Nonsanctioned Trade With Iran

Although the web of U.S. sanctions on Iran is vast and entangles many categories of business activity, not all transactions by non-U.S. persons with Iran are sanctionable. Transactions by non-U.S. persons related to the export to Iran of consumer goods are not expressly targeted by U.S. secondary sanctions. However, such transactions can nevertheless present risks and should be carefully navigated. For example, the sale of goods or the provision of services to certain sectors of Iran’s economy, such as energy or shipping, could trigger secondary sanctions risk. Moreover, unless an exception applies, such transactions should not involve: certain persons on the SDN List, including the CBI or a designated Iranian financial institution; U.S. persons, or U.S.-owned or -controlled foreign entities; U.S. origin goods; or the U.S. financial system.5

In addition, transactions for the sale of agricultural commodities, food, medicine or medical devices to Iran are generally not sanctionable unless they involve persons on the SDN List that have been designated in connection with Iran’s support for international terrorism or proliferation of weapons of mass destruction.6 To the extent such transactions involve U.S. persons, U.S.-owned or -controlled foreign entities, U.S.-origin goods or transit the U.S. financial system, they must comply with general licenses in the ITSR and be consistent with applicable U.S. export control regulations.

Guidance on Receipt of Payments After Expiration of Wind-Down Periods

In May and August 2018, OFAC issued guidance regarding the receipt of payments by U.S. and non-U.S. persons after the conclusion of the applicable wind-down period. Specifically, OFAC previously clarified that U.S. persons and U.S.-owned or -controlled foreign entities would require a specific license from OFAC to receive any payment following the end of the relevant wind-down period for activities conducted during that period. Moreover, OFAC advised that non-U.S. persons are permitted to receive payments after the respective wind-down period expires for goods or services fully delivered to an Iranian counterparty — or for loans or credits extended to an Iranian counterparty — prior to the expiration of the applicable wind-down period and pursuant to a written agreement entered into prior to May 8, 2018, provided that the relevant activities were consistent with U.S. sanctions then in effect.

OFAC’s guidance offers that non-U.S., non-Iranian persons can seek guidance from OFAC or the State Department, as appropriate, prior to the receipt of payment, if they would like to confirm that the payments would meet the criteria the U.S. government has set out.7 OFAC states that non-U.S., non-Iranian persons seeking to receive payment where an individual or entity added to the SDN List is involved should seek such guidance.8

Significant Reduction Exceptions

The State Department has issued so-called significant reduction exceptions (SREs) to eight countries — China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey — for significantly reducing their crude oil importations from Iran during the wind-down period. As a result, foreign financial institutions based in those countries will be able to engage in certain transactions with the CBI or certain Iranian financial institutions related to the purchase of petroleum or petroleum products (but not petrochemicals) from Iran without the threat of being sanctioned. Additionally, the use of services to import petroleum from Iran by a person in a country that has been granted an SRE — including services provided by the shipping sector of Iran and Iranian port operators, and related financial transactions, including with the CBI — is also generally not sanctionable. However, the SREs generally do not waive secondary sanctions for activities or transactions involving Iranian entities that are designated in connection with Iran’s support for international terrorism or its proliferation of weapons of mass destruction.9

All proceeds of purchases of petroleum or petroleum products must be credited to an account at a financial institution in the country that received the SRE. Such funds may only be used to facilitate bilateral trade in nonsanctioned goods and services between the country granted the SRE and Iran, and the funds cannot be repatriated to Iran. Sales of agricultural commodities, food, medicine or medical devices to Iran are not subject to the bilateral trade restrictions.10

The SREs must be renewed every six months.

Nuclear Waivers

The United States has announced that all nuclear cooperation with Iran, except for limited nonproliferation projects, will be sanctionable. On November 5, 2018, the Trump administration granted temporary waivers permitting the continuation of certain ongoing nonproliferation projects in Arak, Bushehr and Fordow. These waivers provide an interim measure to preserve oversight of Iran’s civil nuclear program and reduce proliferation risks, and are conditioned on the cooperation of the various stakeholders.11


1 Treasury Department, “U.S. Government Fully Re-Imposes Sanctions in the Iranian Regime as Part of Unprecedented U.S. Economic Pressure Campaign,” November 5, 2018.

2 OFAC FAQ 644.

3 On November 5, 2018, SWIFT, a Belgium-based network provider that facilitates the cross-border transmission of messages regarding financial transactions, stated that it would be suspending certain Iranian banks’ access to the messaging system.

4 Persons subject to secondary sanctions will have a notation of “Additional Sanctions Information – Subject to Secondary Sanctions” in the SDN List entry.

5 OFAC FAQ 637.

6 Id.

7 OFAC FAQ 632.

8 OFAC FAQ 636.

9 OFAC FAQ 642.

10 OFAC FAQ 265.

11 White House Fact Sheet: Constraining Iran’s Nuclear Program, November 5, 2018.

Download pdf

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Skadden, Arps, Slate, Meagher & Flom LLP | Attorney Advertising

Written by:

Skadden, Arps, Slate, Meagher & Flom LLP

Skadden, Arps, Slate, Meagher & Flom LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at:

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit
  • New Relic - For more information on New Relic cookies, please visit
  • Google Analytics - For more information on Google Analytics cookies, visit To opt-out of being tracked by Google Analytics across all websites visit This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at:

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.