Rule2026-19978
Iranian Transactions and Sanctions Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 30, 2026
Effective
September 30, 2026
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is adopting a final rule amending the Iranian Transactions and Sanctions Regulations to implement certain provisions of a January 10, 2020 Iran-related Executive order. This amendment also revises an existing definition and an existing exemption, and incorporates two exemptions from the January 10, 2020 Iran-related Executive order.
Full Text
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<title>Federal Register, Volume 91 Issue 188 (Wednesday, September 30, 2026)</title>
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[Federal Register Volume 91, Number 188 (Wednesday, September 30, 2026)]
[Rules and Regulations]
[Pages 61759-61762]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19978]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions and Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is adopting a final rule amending the Iranian
Transactions and Sanctions Regulations to implement certain provisions
of a January 10, 2020 Iran-related Executive order. This amendment also
revises an existing definition and an existing exemption, and
incorporates two exemptions from the January 10, 2020 Iran-related
Executive order.
DATES: This rule is effective September 30, 2026.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Regulatory Affairs, 202-622-4855; or <a href="https://ofac.treasury.gov/contact-ofac">https://ofac.treasury.gov/contact-ofac</a>.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="https://ofac.treasury.gov">https://ofac.treasury.gov</a>.
Background
On October 22, 2012, OFAC issued a final rule that amended the
former Iranian Transactions Regulations, 31 CFR part 560, and reissued
them in their entirety as the Iranian Transactions and
[[Page 61760]]
Sanctions Regulations (77 FR 64664, October 22, 2012) (the
``Regulations''). With this rule, OFAC is amending the Regulations to
implement Executive Order (E.O.) 13902 of January 10, 2020, ``Imposing
Sanctions With Respect to Additional Sectors of Iran'' (85 FR 2003,
January 14, 2020).
On January 10, 2020, the President, invoking the authority of,
inter alia, the International Emergency Economic Powers Act (50 U.S.C.
1701 et. seq.) (IEEPA), issued E.O. 13902 to take further steps with
respect to the national emergency declared in E.O. 12957 of March 15,
1995. In E.O. 13902, the President found that Iran continues to be the
world's leading sponsor of terrorism and has threatened United States
military assets and civilians through the use of military force and
support to Iranian-backed militia groups, and stated that it remains
the policy of the United States to deny Iran all paths to a nuclear
weapon and intercontinental ballistic missiles, and to counter the
totality of Iran's malign influence in the region. In furtherance of
these objectives, the President stated that it is the policy of the
United States to deny the Iranian government revenues, including
revenues derived from the export of products from key sectors of Iran's
economy, that may be used to fund and support its nuclear program,
missile development program, terrorism and terrorist proxy networks,
and malign regional influence.
Section 1(a) of E.O. 13902 blocks, with certain exceptions, all
property and interests in property that are in the United States, that
come within the United States, or that are or come within the
possession or control of any U.S. person of any person determined by
the Secretary of the Treasury, in consultation with the Secretary of
State: (i) to operate in the construction, mining, manufacturing, or
textiles sectors of the Iranian economy, or any other sector of the
Iranian economy as may be determined by the Secretary of the Treasury,
in consultation with the Secretary of State; (ii) to have knowingly
engaged, on or after January 10, 2020, in a significant transaction for
the sale, supply, or transfer to or from Iran of significant goods or
services used in connection with a sector of the Iranian economy
specified in, or determined by the Secretary of the Treasury, in
consultation with the Secretary of State, pursuant to section 1(a)(i)
of E.O. 13902; (iii) to have materially assisted, sponsored, or
provided financial, material, or technological support for, or goods or
services to or in support of, any person whose property and interests
in property are blocked pursuant to E.O. 13902; or (iv) to be owned or
controlled by, or to have acted or purported to act for or on behalf
of, directly or indirectly, any person whose property and interests in
property are blocked pursuant to E.O. 13902. The blocked property and
interests in property of the persons described above may not be
transferred, paid, exported, withdrawn, or otherwise dealt in.
In section 4 of E.O. 13902, the President determined that the
making of donations of the type of articles specified in section
203(b)(2) of IEEPA by, to, or for the benefit of any person whose
property and interests in property are blocked pursuant to E.O. 13902
would seriously impair the President's ability to deal with the
national emergency declared in E.O. 12957. The President therefore
prohibited the donation of such items.
Section 5 of E.O. 13902 provides that the prohibition on any
transaction or dealing in blocked property or interests in property
includes the making of any contribution or provision of funds, goods,
or services by, to, or for the benefit of any person whose property and
interests in property are blocked pursuant to E.O. 13902, and the
receipt of any contribution or provision of funds, goods, or services
from any such person.
Section 6 of E.O. 13902 prohibits any transaction that evades or
avoids, has the purpose of evading or avoiding, causes a violation of,
or attempts to violate any of the prohibitions set forth in E.O. 13902,
as well as any conspiracy formed to violate such prohibitions.
Section 7(d) of E.O. 13902 defines the term ``Iran,'' for purposes
of the order, to mean the Government of Iran and the territory of Iran
and any other territory or marine area, including the exclusive
economic zone and continental shelf, over which the Government of Iran
claims sovereignty, sovereign rights, or jurisdiction, provided that
the Government of Iran exercises partial or total de facto control over
the area or derives a benefit from economic activity in the area
pursuant to international arrangements.
Section 9 of E.O. 13902 authorizes the Secretary of the Treasury,
in consultation with the Secretary of State, to take such actions,
including the promulgation of rules and regulations, and to employ all
powers granted to the President by IEEPA as may be necessary to carry
out the purposes of E.O. 13902. Section 9 of E.O. 13902 also provides
that the Secretary of the Treasury may redelegate any of these
functions within the Department of the Treasury.
Section 11 of E.O. 13902 states that E.O. 13902 shall not apply
with respect to any person for conducting or facilitating a transaction
for the provision (including any sale) of agricultural commodities,
food, medicine, or medical devices to Iran.
Section 12 of E.O. 13902 states that nothing in E.O. 13902 shall
prohibit transactions for the conduct of the official business of the
United Nations (including its specialized agencies, programmes, funds,
and related organizations) by employees, grantees, or contractors
thereof.
Current Regulatory Action
In subpart B of the Regulations, OFAC is revising Sec. 560.210 to
amend an exemption and incorporate exemptions from sections 11 and 12
of E.O. 13902 as Sec. 560.210 (g) and (h), respectively. OFAC is also
revising Sec. 560.211 to implement section 1(a) of E.O. 13902. OFAC is
also making conforming amendments to notes 1 and 2 to paragraphs (a)
through (c) of Sec. 560.211.
In subpart C of the Regulations, OFAC is revising Sec. 560.303 to
incorporate the definition of ``Iran'' in section 7(d) of E.O. 13902
solely for the purposes of the newly added Sec. Sec. 560.210(g) and
560.211(c)(1)(iii). For those provisions, the definition of ``Iran''
includes the Government of Iran.
Public Participation
Because the Regulations involve a foreign affairs function, the
provisions of E.O. 12866 of September 30, 1993, ``Regulatory Planning
and Review'' (58 FR 51735, October 4, 1993), as amended, and the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date, as well as the provisions of E.O. 14192 of January 31,
2025, ``Unleashing Prosperity Through Deregulation'' (90 FR 6065,
February 6, 2025) and E.O. 14219 of February 19, 2025, ``Ensuring
Lawful Governance and Implementing the President's `Department of
Government Efficiency' Deregulatory Initiative'' (90 FR 10583, February
25, 2025) are inapplicable. Because no notice of proposed rulemaking is
required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-
612) does not apply.
Executive Order 14294
Section 5 of E.O. 14294 of May 9, 2025, ``Fighting
Overcriminalization in Federal Regulations'' (90 FR 20367, May 14,
2025) directs that all future notices of proposed rulemaking (NPRMs)
and final rules published in the Federal Register, the violation of
which may constitute criminal regulatory offenses, should include a
statement identifying
[[Page 61761]]
that the rule or proposed rule is a criminal regulatory offense and the
authorizing statute. E.O. 14294 directs agencies to draft this
statement in consultation with the Department of Justice.
E.O. 14294 further directs that the regulatory text of all NPRMs
and final rules with criminal consequences published in the Federal
Register after May 9, 2025 should explicitly state a mens rea
requirement for each element of a criminal regulatory offense,
accompanied by citations to the relevant provisions of the authorizing
statute.
Willful violations of the regulations set forth in this final rule
may be subject to criminal penalties pursuant to 50 U.S.C. 1705 and
regulations promulgated thereunder. The statutory authority for
criminal liability requires a mens rea of willfulness as an element
pursuant to 50 U.S.C. 1705(c). In drafting this statement, OFAC has
consulted with the Department of Justice.
Paperwork Reduction Act
The collections of information related to the Regulations are
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of information have been approved by
the Office of Management and Budget under control number 1505-0164. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
List of Subjects in 31 CFR Part 560
Administrative practice and procedure, Banks, banking, Blocking of
assets, Credit, Foreign trade, Iran, Penalties, Reporting and
recordkeeping requirements, Sanctions, Securities, Services.
For the reasons set forth in the preamble, OFAC amends 31 CFR part
560 as follows:
PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS
0
1. The authority citation for part 560 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9, 7201 et seq., 8501 et seq., 8701 et seq.; 31 U.S.C.
321(b); 50 U.S.C. 1601 et seq., 1701 et seq.; 28 U.S.C. 2461 note
(Pub. L. 101-410, 104 Stat. 890, as amended); E.O. 12613, 52 FR
41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR,
1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p.
356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599,
77 FR 6659, 3 CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939, 3
CFR, 2018 Comp., p. 854; E.O. 13902, 85 FR 2003, 3 CFR, 2020 Comp.,
p. 299.
Subpart B--Prohibitions
0
2. Amend Sec. 560.210 by revising paragraph (e) and adding paragraphs
(g) and (h) to read as follows:
Sec. 560.210 Exempt transactions.
* * * * *
(e) Official business. The prohibitions in Sec. 560.211(a), (b),
and (c)(1)(i) and (ii) do not apply to transactions for the conduct of
the official business of the Federal Government by employees, grantees,
or contractors thereof.
* * * * *
(g) Humanitarian transactions. The prohibitions in Sec.
560.211(c)(1)(iii) do not apply with respect to any person for
conducting or facilitating a transaction for the provision (including
any sale) of agricultural commodities, food, medicine, or medical
devices to Iran.
(h) Official business of the United Nations. The prohibitions in
Sec. 560.211(c)(1)(iii) do not apply to transactions for the conduct
of the official business of the United Nations (including its
specialized agencies, programmes, funds, and related organizations) by
employees, grantees, or contractors thereof.
0
3. Amend Sec. 560.211 by:
0
a. Removing the word ``or'' at the end of paragraph (c)(1)(i);
0
b. Removing the period at the end of paragraph (c)(1)(ii)(B) and adding
``; or'' in its place;
0
c. Adding paragraph (c)(1)(iii); and
0
d. Revising notes 1 and 2 to paragraphs (a) through (c).
The addition and revisions read as follows:
Sec. 560.211 Prohibited transactions involving blocked property.
* * * * *
(c) * * *
(1) * * *
(iii) E.O. 13902. Any person determined by the Secretary of the
Treasury, in consultation with the Secretary of State:
(A) To operate in the construction, mining, manufacturing, or
textiles sectors of the Iranian economy, or any other sector of the
Iranian economy as may be determined by the Secretary of the Treasury,
in consultation with the Secretary of State;
(B) To have knowingly engaged, on or after January 10, 2020, in a
significant transaction for the sale, supply, or transfer to or from
Iran of significant goods or services used in connection with a sector
of the Iranian economy specified in, or determined by the Secretary of
the Treasury, in consultation with the Secretary of State, pursuant to
paragraph (c)(1)(iii)(A) of this section;
(C) To have materially assisted, sponsored, or provided financial,
material, or technological support for, or goods or services to or in
support of, any person whose property and interests in property are
blocked pursuant to this paragraph (c)(1)(iii); or
(D) To be owned or controlled by, or to have acted or purported to
act for or on behalf of, directly or indirectly, any person whose
property and interests in property are blocked pursuant to this
paragraph (c)(1)(iii).
* * * * *
Note 1 to paragraphs (a) through (c): The names of persons that
the Office of Foreign Assets Control (OFAC) has designated or
identified pursuant to Executive Order (E.O.) 13599, sections
1(a)(i) or 1(a)(ii) of E.O. 13846, or E.O. 13902, whose property and
interests in property therefore are blocked pursuant to this
section, are published in the Federal Register and incorporated into
OFAC's Specially Designated Nationals and Blocked Persons List (SDN
List) with the following identifiers: for E.O. 13599 or sections
1(a)(i) or 1(a)(ii) of E.O. 13846: ``[IRAN]''; for E.O. 13902:
``[IRAN-EO13902].'' The SDN List is accessible through the following
page on OFAC's website: <a href="http://www.treasury.gov/sdn">www.treasury.gov/sdn</a>. Additional information
pertaining to the SDN List can be found in appendix A to this
chapter. See Sec. 560.425 concerning entities that may not be
listed on the SDN List but whose property and interests in property
are nevertheless blocked pursuant to this section. E.O. 13599 blocks
the property and interests in property of the Government of Iran and
Iranian financial institutions, as defined in Sec. Sec. 560.304 and
560.324, respectively. The property and interests in property of
persons who meet the definitions of the terms Government of Iran or
Iranian financial institution are blocked pursuant to this section
regardless of whether the names of such persons are published in the
Federal Register or incorporated into the SDN List.
Note 2 to paragraphs (a) through (c): Section 203 of the
International Emergency Economic Powers Act (50 U.S.C. 1702)
authorizes the blocking of property and interests in property of a
person during the pendency of an investigation. Except as described
in note 3 to paragraphs (a) through (c) of this section, the names
of persons whose property and interests in property are blocked
pending investigation pursuant to this section are published in the
Federal Register and incorporated into the SDN List using the
following identifier: for E.O. 13599 or sections 1(a)(i) or 1(a)(ii)
of E.O. 13846: ``[BPI-IRAN]''; for E.O. 13902: ``[BPI-IRAN-
EO13902].''
* * * * *
0
4. Revise Sec. 560.303 to read as follows:
[[Page 61762]]
Sec. 560.303 Iran; Iranian.
(a) Except as provided in paragraph (b) of this section, the term
Iran means the territory of Iran and any other territory or marine
area, including the exclusive economic zone and continental shelf, over
which the Government of Iran claims sovereignty, sovereign rights, or
jurisdiction, provided that the Government of Iran exercises partial or
total de facto control over the area or derives a benefit from economic
activity in the area pursuant to an international agreement. The term
Iranian means pertaining to Iran as defined in this paragraph (a).
(b) For purposes of Sec. Sec. 560.210(g) and 560.211(c)(1)(iii),
the term Iran means the Government of Iran and the territory of Iran
and any other territory or marine area, including the exclusive
economic zone and continental shelf, over which the Government of Iran
claims sovereignty, sovereign rights, or jurisdiction, provided that
the Government of Iran exercises partial or total de facto control over
the area or derives a benefit from economic activity in the area
pursuant to international arrangements.
Bradley T. Smith,
Director, Office of Foreign Assets Control, Department of the Treasury.
[FR Doc. 2026-19978 Filed 9-29-26; 8:45 am]
BILLING CODE 4810-AL-P
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</html>Indexed from Federal Register on September 30, 2026.
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