Yes. Under section 560.215 of the ITSR, U.S.-owned or -controlled foreign entities are prohibited from knowingly engaging in any transaction, directly or indirectly, with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited by the ITSR if engaged in by a U.S. person or in the United States. Section 560.211 of the ITSR separately prohibits transferring, paying, exporting, withdrawing, and dealing in any property and interests in property of the Government of Iran, any Iranian financial institution, and any other persons whose property and interests in property are blocked pursuant to the ITSR, unless exempt or authorized by OFAC.
In light of these prohibitions, U.S.-owned or -controlled foreign entities are required to apply restrictions akin to blocking on any property or interests in property of persons subject to section 560.211 of the ITSR to ensure that such property and interests in property are not transferred, paid, exported, withdrawn, or otherwise dealt in. This requirement applies both with respect to a person whose property and interests in property are blocked solely pursuant to the ITSR and a person whose property and interests in property are blocked pursuant to the ITSR and another authority (e.g., when a person is included on the List of Specially Designated Nationals and Blocked Persons with the “[IRAN]” tag, as well as a tag for another sanctions program, such as the terrorism tag (“[SDGT]”), nuclear proliferation tag (“[NPWMD]”), or human rights tag (“[IRAN-TRA]” or “[IRAN-HR]”)).
Section 560.215(b)(1) of the ITSR deems an entity to be “owned or controlled” by a U.S. person if the U.S. person holds a 50 percent or greater equity interest by vote or value in the entity; holds a majority of seats on the board of directors of the entity; or otherwise controls the actions, policies, or personnel decisions of the entity.
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