Frequently Asked Questions

338. With respect to the authorizations in 31 CFR § 560.540(a)(1) and (a)(2) of the Iranian Transactions and Sanctions Regulations (ITSR), what services and software are covered?

338 … Qualifying services under 31 CFR § 560.540(a)(1) are those that are “incident to the exchange of communications over the internet,” as well as cloud-based services in support of such services or of any other transaction authorized or exempt under the ITSR. Qualifying software under 31 CFR §… Read more

339. With respect to the authorization in 31 CFR § 560.540(a)(3), do exporters need to make a determination as to whether an export of an item or service included in the 31 CFR § 560.540 List of Services, Software, and Hardware Incident to Communications is “incident to communications”?

339 … No. The 31 CFR § 560.540 List of Services, Software, and Hardware Incident to Communications lists software, hardware, and related services determined to be “incident to communications” for purposes of the authorization in 31 CFR § 560.540(a)(3) of the ITSR. Date Updated: May 16, 2024 … With… Read more

345. How can U.S. companies arrange for payment from Iran for exports authorized under 31 CFR § 560.540?

345 … In general, the payment requirements under 31 CFR § 560.540 are the same as for all other general licenses under the Iranian Transactions and Sanctions Regulations ( ITSR ). Section 560.540(c) of the ITSR provides that U.S. depository institutions or U.S. registered brokers or dealers in… Read more

346. What kind of due diligence is required for the exportation of fee-based services, software, or hardware authorized by 31 CFR § 560.540?

346 … Due diligence programs should be tailored to the particular risks encountered by exporters. As a general matter, companies selling fee-based services, software, or hardware authorized by 31 CFR § 560.540 should undertake reasonable, risk-based measures designed to ensure that they do not… Read more

347. Are there any restrictions as to the use of the Farsi language in authorized advertising or software?

347 … U.S. sanctions on Iran do not impose any restrictions as to the use of the Farsi language. See FAQ 337 . Date Updated: May 16, 2024 … Are there any restrictions as to the use of the Farsi language in authorized advertising or …

348. May U.S. persons employ agents in Iran to facilitate sales, create or fund a physical sales presence on the ground in Iran, or utilize Iranian commercial marketing services in furtherance of exports authorized under 31 CFR § 560.540 of the Iranian Transactions and Sanctions Regulations (ITSR)?

348 … No. Section 560.540 of the ITSR does not authorize the employment of persons in Iran to facilitate sales, the maintenance of a physical sales presence in Iran, or the utilization of Iranian marketing services. However, the exportation of certain copy-ready advertising materials is exempt… Read more

340. What should I do if I am unsure whether an item or service is covered by 31 CFR § 560.540?

340 … If you require assistance interpreting the authorizations contained in 31 CFR § 560.540 and how they apply to your situation, please contact OFAC’s Compliance hotline or submit a request for interpretive guidance at the OFAC License Application Page . Date Updated: May 16, 2024 … What should… Read more

341. May a non-U.S. person export, reexport, or provide to Iran hardware or software that is subject to Commerce's Export Administration Regulations (EAR) pursuant to 31 CFR § 560.540?

341 … Yes. For purposes of the authorities administered by OFAC, 31 CFR § 560.540 authorizes the exportation, reexportation, or provision of certain hardware and software subject to the EAR by non-U.S. persons outside the United States. See 31 CFR § 560.540(a)(2)(i) and (a)(3). For example, a… Read more

342. Does 31 CFR § 560.540 continue to authorize U.S. persons located outside the United States to export or reexport to Iran certain specified hardware or software that is not subject to Commerce's Export Administration Regulations (EAR)?

342 … Yes. Section 560.540 of the ITSR continues to authorize the exportation, reexportation, or provision to Iran by U.S. persons located outside of the United States of certain specified hardware and software items that are not subject to the EAR . See 31 CFR § 560.540(a)(2)(ii), (a)(3)(ii) and… Read more

343. Does 31 CFR § 560.540 of the Iranian Transactions and Sanctions Regulations (ITSR) authorize the exportation to Iran and importation into the United States or a third country of communication devices by persons travelling to and from Iran?

343 … Yes. Section 560.540 of the ITSR authorizes the exportation, reexportation, or provision to Iran and the importation into the United States by an individual entering the United States directly or indirectly from Iran, of hardware and software authorized by paragraphs 31 CFR § 560.540(a) (2)… Read more

Frequently Asked Questions

Office of Terrorism and Financial Intelligence