July 25, 2016
Last month, OFAC added nine FAQs (K.14 – K.22) related to foreign entities owned or controlled by U.S. persons. The FAQs confirm several things, but we’ll just mention a few. First, FAQ K.14 confirms that U.S. parent companies may alter their policies and procedures (or those of their owned or controlled foreign entity) to allow the U.S.-owned or -controlled foreign entity to establish a physical presence inside Iran.
Second, FAQ K.20 confirms that U.S. persons employed by or serving on the board of directors of a U.S.-owned or -controlled foreign entity must generally be recused or “walled off” from all Iran-related business of that entity. Third, FAQ K.22 confirms that a U.S. person may receive reports from its owned or controlled foreign entities that include details on transactions the foreign entity conducted with Iran pursuant to General License H, but remain prohibited from engaging in Iran-related activities or influencing Iran-related business decisions.