Sanctions Round-Up: Fourth Quarter 2015 And 'Implementation Day'

The International Atomic Energy Agency certifies that Iran had complied with all nuclear-related requirements of the Joint Comprehensive Plan of Action leading to the end of United States sanctions against the country ("Implementation Day"). OFAC continues to issue amendments to the Cuban Assets Control Regulations. Additionally, OFAC issues a new sanctions regime targeting "Malicious Cyber-Enabled Activities."

Included in this Quarter's Sanctions Round-Up:

"Implementation Day" under the Joint Comprehensive Plan of Action ("JCPOA") leads to the lifting of Iranian sanction in several key sectors; OFAC publishes a second round of amendments to the Cuban Assets Control Regulations ("CACR"); The Council of the European Union continues sanctions against Russia for its activities in Eastern Ukraine; US Authorities continue to enforce sanctions through settlements; OFAC issues regulations on Malicious Cyber-Enabled Activities; and Other notable developments. Iran Nuclear Deal

On September 17, the Iranian nuclear deal negotiated by the P5+1 officially became effective in the US after Congress failed to block the agreement within its 60-day deadline. Parties to the Iran nuclear deal announced that they aim for full implementation by early 2016.

"Adoption Day" under JCPOA

October 18, 2015 marked "Adoption Day" under the JCPOA—the day on which the JCPOA became effective. In connection with Adoption Day, President Obama issued a memorandum directing the Secretary of State, the Secretary of the Treasury, the Secretary of Commerce, and the Secretary of Energy to take all appropriate measures "to ensure the prompt and effective implementation of the US commitments set forth in JCPOA upon Iran's fulfillment of its requisite obligations." Acting under the direction of the President, on October 18, 2015, the Secretary of State issued several contingent waivers of the Iran Freedom and Counter-Proliferation Act of 2012 ("IFCA"). With very few exceptions, these contingent waivers applied only to non-US persons and entities and, in all cases, excluded any transactions involving persons on OFAC's list of Specially Designated Nationals and Blocked Persons (the SDN list). The contingent waivers included:

Section 1244(c)(1) of IFCA blocking the property of entities in energy, shipping, and shipbuilding sectors for: Transactions by non-US persons; and Transactions by US persons for the sale of commercial passenger aircraft and spare parts and components for such aircraft, and associated services to Iran as described in Section 5.1.1 of Annex II to the JCPOA, provided that OFAC has issued any required licenses; Section 1244(d) of IFCA containing additional sanctions with respect to the energy, shipping, and shipbuilding sectors of Iran for transactions by non-US persons; Section 1244(h)(2) of IFCA regarding sanctions to natural gas for transactions by foreign financial institutions; Sections 1245(a)(1)(A) of IFCA sanctioning the sale, supply, or transfer of precious metals for transactions by non-US persons; Sections 1245(a)(1)(B) of IFCA sanctioning the sale, supply, or transfer of graphite, raw, or semi-finished metals for transactions by non-US persons; Section 1245(a)(1)(C) of IFCA, for transactions by non-US persons for the sale, supply, or transfer directly or indirectly to or from Iran of, graphite, raw, or semi-finished metals, and for associated services, with respect to materials that are: to be used in connection with the energy, shipping, or shipbuilding sector of Iran, or resold, retransferred, or otherwise supplied to an end user in one or more such sectors; sold, supplied, or transferred to any individual or entity blocked solely pursuant to E.O. 13599, or resold, retransferred, or otherwise supplied to such an individual or entity; and determined pursuant to Section 1245(e)(3) to be used as described in that section, or resold, retransferred, or otherwise supplied for use in the nuclear program of Iran; excluding transactions involving: (i) the sale, supply, or transfer of materials described in section 1245(d) that have not been approved by the procurement channel established pursuant to paragraph 16 of United Nations Security Council Resolution 2231 and Section 6 of Annex IV of the JCPOA, in cases in which the procurement channel applies; or (ii) the sale, supply, or transfer of materials described in section 1245(d) if the material is sold, supplied, or transferred, or resold, retransferred, or otherwise supplied directly or indirectly, for use in connection with the military or ballistic missile program of Iran;

Section 1245(c) of IFCA blocking correspondent or pay-through accounts for transactions by non-US persons that are within the scope of the waivers under Section 1245(a)(1) of IFCA as described in paragraphs 4-6 above; Section 1246(a)(1)(A) of IFCA for the provision of underwriting services or insurance or reinsurance by non-US persons in connection with activities involving Iran that are described in Sections 17.1-17.2 and 17.5 of Annex V of the JCPOA; Section 1246(a)(1)(B)(i) of IFCA for the provision of underwriting services or insurance or reinsurance by non-US persons; Section 1246(a)(1)(B)(ii) of IFCA for the provision of underwriting services or insurance or reinsurance by non-US persons for transactions that are within the scope of the waivers under section 1245(a)(1)(B) and (C) of IFCA as described in paragraphs 5-6 above; Section 1246(a)(1)(C) of IFCA for the provision of underwriting services or insurance or reinsurance by non-US persons to or for any individual or entity blocked solely pursuant to E.O. 13599; Section 1246(a) of IFCA for the provision of underwriting...