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July 31, 2017

New Iran Sanctions

On July 28, 2017, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) added six Iran-based subsidiaries of Shahid Hemmat Industrial Group (SHIG), an entity the Treasury Department describes as “central” to Iran’s ballistic missile program, to OFACs Specially Designated Nationals List in response to Iran discharging a space launch vehicle yesterday. In a statement issued by the Treasury Department, Secretary Steven T. Mnuchin confirmed that the U.S. “will continue to aggressively counter Iran’s ballistic missile-related activity.” As result of the designations, all property and interests in property of those entities subject to U.S. jurisdiction is blocked, and U.S. persons are generally prohibited from engaging in transactions with them.  Additionally, the Treasury Department warns that financial institutions that deal with these designated entities will risk exposure to sanctions that could sever access to U.S. financial system or result in their property being blocked.