To the extent a transaction is exempt from the prohibitions of the ITSR, E.O. 13599, or section 1 or 15 of E.O. 13846, or is authorized by a general license issued pursuant to these authorities if engaged in by a U.S. person, it would not be prohibited for a U.S.-owned or -controlled foreign entity (as defined above) to engage in the transaction, provided that it satisfies all the conditions and requirements of the exemption or general license. Similarly, if the transaction is one for which a U.S. person might apply for a specific license — for example, under OFAC’s statement of licensing policy for certain targeted educational, cultural, and sports exchange programs that are designed to directly benefit the Iranian people set forth at section 560.545 of the ITSR — a U.S.-owned or -controlled foreign entity or the U.S. person that owns or controls the entity may apply for a specific license for the U.S.-owned or -controlled foreign entity to engage in the transaction. Note: whether a U.S. parent company’s specific license covers transactions by its owned or controlled foreign entity that are otherwise prohibited by section 8 of E.O. 13846 will depend on the terms of that license and the scope of the authorized activities.
Pursuant to subsection 20(c) of E.O. 13846, section 560.556 of the ITSR, which extends general licenses available under the ITSR to U.S.-owned or -controlled foreign entities, remains in effect.