Overview
Among the many complexities of the Joint Comprehensive Plan of Action (JCPOA) agreement between Iran and the “E3/EU+3” is the question of what U.S. sanctions will remain in place following implementation of sanctions relief under the JCPOA, scheduled to occur on or around “Implementation Day,” which is expected in spring or summer 2016. At that time, the United States and European Union will cease to apply many “nuclear-related” sanctions directed at Iran, including most U.S “secondary sanctions” applicable to non-U.S. persons. This leaves the question of just what sanctions are considered “non-nuclear” and therefore will remain in effect beyond “Implementation Day”.
This post will explore one type of “non-nuclear” sanction that will continue in force and could have significant implications for non-U.S. companies seeking to enter the Iranian market: U.S. sanctions against Iran’s Islamic Revolutionary Guard Corps (IRGC).
The IRGC is subject to two types of sanctions that will remain in place after Implementation Day:
- Listing as a Specially Designated National (SDN). The IRGC is an SDN, meaning that U.S. persons are prohibited from engaging any transactions or dealings with the organization, and further that non-U.S. persons are restricted from providing “significant” support to the organization under the Iran Freedom and Counter-Proliferation Act, which authorizes secondary sanctions against persons that provide significant support to SDNs.
- Iran Threat Reduction and Syria Human Rights Act (ITRA) sanctions. The ITRA authorizes secondary sanctions against non-U.S. persons who materially assist or support, or engage in significant transactions with, the IRGC or designated IRGC officials, agents, or affiliates.