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Listen Live to Mike S. Manesh July 26th on 670 am Radio @ 2:00pm

Listen Live to Mike S. Manesh on the radio Tuesday July 26, 2011 @ 2:00 p.m. on 670am in Los Angeles or on the net: http://www.kirn670am.com

Subject: U.S. Economic Sanctions against Iran, consequences of non-compliance with the law, and how to receive money from Iran legally?

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OFAC Regulations Exemptions Explained

The primary emphasis of this article focuses on the exemptions of the OFAC Regulations as introduced in last week’s blog post. While prohibitions are strictly enforced by the Office of Foreign Assets Control within the Department of Treasury, there are certainly exemptions which are highly relevant and must be addressed.

As discussed last week, it is important to know and understand how OFAC defines a “U.S. person”:

1. U.S. Citizen, regardless of where they live in the U.S.;
2. U.S. Permanent Residents ( Green Card Holders);
3. All persons or entities within the U.S.;
4. U.S. Citizens or US. Permanent Residents located outside the U.S.;
5. All U.S. incorporated entities and their foreign branches or subsidiaries owned or controlled by U.S. entities.

Exemptions to these Regulations for any individuals who are “U.S. Persons” are presented within the following paragraphs.

The I.T.R. outlines several and specific exemptions for obtaining a license (i.e. these specified actions are permitted and do not require a license). There are five different types of transactions which the I.T.R. specifies and they are as follows:
1. Personal Communications such as letters, e-mail, etc.
2. Humanitarian Donations: articles intended to alleviate human suffering such as food, clothing, medicine, and gifts valued at $100.00 U.S. dollars or less.
3. Information and Informational Materials: goods that are exempted under the International Emergency Economic Powers Acts (IEEPA), as depicted within the Berman Amendment, include: publications, films, posters, phonograph records, photos, microfilms, microfiche, tapes, compact disks, CD ROMs, artwork and news wire feeds. This exemption does NOT cover technical software, in which, obtaining a license becomes required.
4. Travel: an example would be the importation of baggage for personal use and for living purposes.
5. Letters of Credit (financing agreements): trade so long as the transaction happened before 1995. Any form of Letters of Credit after 1995 requires the individual to seek a license. Here, “trade” means “trade contracts,” or engaging in international sale contracts, contract joint venture, contract for international distribution, etc.

It is important to realize that there are two different types of licenses a “U.S. Person” can apply for. There are “General Licenses and Specific Licensees”. A general license allows an individual or entity to engage in actions which are otherwise prohibited. An example of a general license is 90 day general license that the Office of Foreign Assets Control issues for individuals seeking to send donations and aid in response to the 2003 earthquake in Iran. It is highly relevant to note that a general license does NOT give an individual or entity the ability to violate subsequent prohibitions contained within the I.T.R. A general license is also revocable and lasts for a specific and clearly labeled period of time to engage in an authorized and particular transaction(s). A specific license is established by the U.S. government to a specified person or entity which allows that person or entity to engage in specific transactions in reaction to an acknowledged formally written license application. An example of a specific license is for an individual or an entity to engage in commodities trading, typically involving the U.S. and any capacity of the Iranian Government.

Furthermore, of the utmost importance is: “Any transactions with anyone in Iran, including sale of personal or real property in Iran REQUIRES a “Specific License” PRIOR to engaging in such a transaction”. In the next blog, I will discuss the variation in form by which a “U.S. Person” who many own an interest in a property in Iran would require a license from OFAC.

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Do the Iranian Transactions Regulations apply to you?

What is a U.S. Person as defined by the Office of Foreign Assets Control (OFAC)?

Recently the U.S. sanctions against Iran, under the Iranian Transactions Regulations (I.T.R.) are being strictly enforced by the U.S. Department of Treasury. These sanctions were created as Executive Orders first issued in 1979 after the Iranian hostage crisis and have been in existence during all subsequent administrations. These sanctions in present form are being implemented and enforced as a response to the threat of nuclear weapons in Iran, as a penalty for Iran’s support for international terrorism, and used in order to gain accountability for goods, services or technology which may be imported or exported to or from Iran.

Anyone classified as a U.S. person by the I.T.R. is subject to restrictions contained in the Regulations’ laws. The Office of Foreign Assets Control ( “OFAC”), a division of the U.S. Department of Treasury, administers the sanctions program under the Iranian Transactions Regulations, 31 C.F.R. Part 560, and the Iranian Assets Control Regulations, 31 C.F.R. Part 535. Thus, a complete understanding of who classifies as a U.S. person is necessary for all individuals seeking to fully comply with these government directives.

OFAC defines a “U.S. Person” as:
1. U.S. Citizens, regardless of where they live in the U.S.;
2. U.S. Permanent Residents (Green Card Holders);
3. All persons or entities within the U.S.;
4. U.S. Citizens or U.S. Permanent Residents located outside the U.S.;
5. All U.S. incorporated entities and their foreign branches or subsidiaries owned or controlled by U.S. entities.

If you fall in the abovementioned categories, it is of extreme importance to ensure that you are not violating any of the Regulations’ provisions.

Please note that if you employ a third party who is NOT classified as a U.S. person, to import or export goods, services, or technology on your behalf to or from Iran, you would still be in violation of the I. T.R. In other words, you cannot delegate an import or export to a third party in another country if you yourself cannot engage in the transaction(s). For example, if you export goods, services, or technology to a person in Dubai and have that person re-export the goods, services, or technology to Iran, you would be in violation of the I.T.R. Therefore, attempting to shortcut, undermine, or circumvent the provisions of the I.T.R. would result in violation(s) including severe criminal penalties.

Luckily, you are not strictly prohibited from engaging in transactions to or from Iran, as long as you obtain proper authorization from OFAC or if your transactions are exempted by I.T.R. Such actions, authorizations, and exemptions will be further defined in our next week’s blog post.

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Conference with U.S. Department of State and Treasury Representatives Regarding U.S. Economic Sanctions (I.T.R.)

During the Seminar sponsored by the Law Offices of Mike S. Manesh, representatives from the U.S. Departments of State and Treasury, as well as Attorney Mike Manesh, spoke in depth about issues concerning U.S. Trade Sanctions and the new various developments. Dr. Zohreh Mizrahi served as the moderator of the event.

Over four hundred guests attended this free seminar held at the Olympic Collection.
Members of the audience were given binders containing informative handouts regarding the issues discussed throughout the seminar. Attendees also had the opportunity to write down and hand in any questions.

The three main topics of discussion included the Iranian Transaction Regulations (I.T.R), International Emergency Economic Powers Act (IEEPA), and the Office of Foreign Assets Control (OFAC).

The U.S. Department of State representative discussed the history of I.T.R. and the U.S. Department of Treasury representative spoke about the issuance of OFAC licenses.

Mr. Manesh explained in detail the specifics of how the government recognizes illegal dealings between Iran and America and also addressed the necessary criteria for obtaining an OFAC license. Additionally, he summarized the respective laws.

Mr. Manesh also touched on the penalties relating to violations of I.T.R., which include both civil and criminal charges. The I.T.R.’s Investigations include Administrative subpoenas issued by OFAC, which usually allow only 30 days to respond.

After a brief intercession, Dr. Mizrahi read aloud the audiences’ questions and the representatives answered as many as they could for the rest of the seminar.

Questions included the following: “Is it possible to obtain a license to transfer rents from a family owned property from Iran to the U.S.?”, “Is there any specific list of medical commodities that are allowed to be exported from the U.S. to Iran?”, and “Do you have to obtain a separate license each time you want to import funds into the U.S.?”


Overall, the seminar created a greater awareness to the public, especially the Iranian-American community, about the U.S. sanctions as well as the implications of engaging in transactions prohibited by OFAC.

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NEW DEVELOPMENTS: U.S. TRADE SANCTIONS
Iranian Transactions Regulations (I.T.R.)
International Emergency Economic Powers Act (IEEPA)
Office of Foreign Assets Control (OFAC)

An informative conference including representatives from the U.S. Departments of State, Treasury, and Justice, and the Law Offices of Mike S. Manesh is taking place on Wednesday, May11, 2011 at the Olympic Collection, located at 11301 Olympic Blvd., # 204, West Los Angeles, CA 90064 from 6:00-8:30 PM. Seating is limited & reservation is necessary. To RSVP please contact Irene at (310) 843-9292.

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NEW DEVELOPMENTS: U.S. TRADE SANCTIONS SEMINAR

NEW DEVELOPMENTS: U.S. TRADE SANCTIONS
Iranian Transactions Regulations (I.T.R.)
International Emergency Economic Powers Act (IEEPA)
Office of Foreign Assets Control (OFAC)

An informative conference including representatives from the U.S. Departments of State, Treasury, and Justice, and the Law Offices of Mike S. Manesh is taking place on Wednesday, May11, 2011 at the Olympic Collection, located at 11301 Olympic Blvd., # 204, West Los Angeles, CA 90064 from 6:00-8:30 PM. Seating is limited & reservation is necessary. To RSVP please contact Irene at (310) 843-9292.

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