Iran sanctions – payment of “tolls” for Strait of Hormuz passage
Following reports that Iran may allow ships to transit the Strait of Hormuz in return for payment of a “toll” charge, OFAC have issued a new FAQ clarifying their stance on whether such payments would represent a breach of US sanctions.
FAQ 1249 can be found here and reads as follows:
“1249: Are "toll" payments to Iran for safe passage through the Strait of Hormuz authorised?”
No. Payments to the Government of Iran or the Islamic Revolutionary Guard Corps (IRGC), directly or indirectly, for safe passage through the Strait of Hormuz would not be authorised for U.S. persons, including U.S. financial institutions, or for U.S.-owned or -controlled foreign entities.
Such payments also create significant sanctions exposure for non-U.S. persons. Specifically, foreign financial institutions and other non-U.S. persons risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. This includes the Government of Iran and the IRGC, which is sanctioned pursuant to several authorities, including non-proliferation and counterterrorism sanctions authorities, and is designated as a Foreign Terrorist Organization.
Foreign persons that are engaged in certain transactions could also risk sanctions exposure under authorities such as Executive Order 13902, which authorizes sanctions on, among others, persons who have knowingly engaged in certain significant transactions involving determined sectors of the Iranian economy or who have been determined to operate in those sectors, including the financial and petroleum and petrochemical sectors.”
Members with any questions regarding this or any other sanctions matters are asked to contact their Managers