A cloud-based service or software provider whose non-Iranian customers provide services or software to persons in Iran via the cloud may rely upon the authorization in 31 CFR § 560.540 to provide access to Iran, provided that such provider conducts due diligence based on information available to it in the ordinary course of business to confirm that the non-Iranian customer: (1) is not a person whose property and interests in property are blocked, except as authorized under paragraph (a)(6) of 31 CFR § 560.540; and (2) provides software and services that fall within one of the categories described in FAQ 1087, including activity authorized or exempt under the ITSR.
In instances where cloud-based services or software are used to support the exportation of services or software to Iran authorized under 31 CFR § 560.540, OFAC does not generally expect a cloud-based service or software provider to evaluate the ultimate end use or end user of the authorized software or services, provided the cloud-based provider conducts due diligence based on information available to it in the ordinary course of business. For example, if a cloud-based service or software provider supports non-Iranian customers providing access in Iran to news websites or Virtual Private Networks (VPNs) that fall within one of the categories described in FAQ 1087, the cloud-based service or software provider need not evaluate whether the provision of access via the cloud involving Iranian end users is related to communication. By contrast, if a U.S. cloud-based service or software provider supports non-Iranian customers providing certain enterprise management software to Iran, such as payroll management software, the cloud-based service or software provider would be expected to evaluate whether its support of the software is a prohibited export of software or services to Iran because payroll management software is not generally considered a qualifying software incident to communications.
Please note that 31 CFR § 560.540 does not authorize the importation into the United States of Iranian-origin software or the dealing in such software, including the hosting of Iranian-origin software on a mobile application store. Persons seeking to engage in such activity may submit applications for specific licenses to OFAC that describe the nature of the software and the Iranian developers involved.
Date Updated: May 16, 2024