WASHINGTON, DC – Today, President Obama signed an Executive Order (E.O.) that takes a
number of actions in furtherance of the Administration’s Iran sanctions
program, including measures to implement section 1245 of the National
Defense Authorization Act (NDAA). Among other things, the
E.O. freezes all property of the Central Bank of Iran and all other
Iranian financial institutions, as well as all property of the
Government of Iran, further tightening the already broad-based and
stringent U.S. sanctions on Iran.

These actions underscore the
Administration’s resolve to hold the Iranian regime accountable for its
failure to meet its international obligations. Iran now
faces an unprecedented level of pressure due to intensified sanctions
applied by the United States and complementary actions by many others
around the world. The new E.O. issued today reemphasizes
this Administration’s message to the Government of Iran – it will face
ever-increasing economic and diplomatic pressure until it addresses the
international community’s well-founded and well-documented concerns
regarding the nature of its nuclear program.

Additional information describing the
implementation of section 1245 of the NDAA pursuant to the authorities
delegated under this E.O. will be made available in the near term.

Sanctions under the New Executive Order:

On February 5, President Obama signed a
new E.O. effective at 12:01 a.m. on February 6, that blocks (i.e.,
“freezes”) all property of the Government of Iran as well as all
property of Iranian financial institutions, including the Central Bank
of Iran.

1. The E.O. blocks all property
and interests in property of the Government of Iran, the Central Bank
of Iran and all Iranian financial institutions (regardless of whether
the financial institution is part of the Government of Iran) that are in
the United States, that come within the United States, or that come
within the possession or control of U.S. persons. Previously, U.S. persons were required to “reject,” rather than “block,” Iranian transactions.

• Under the order, the Government of
  Iran, the Central Bank of Iran, and all Iranian financial institutions
  are now blocked (i.e. their assets within the jurisdiction of U.S.
  persons are frozen).

• The U.S. sanctions in place since 1995
  have required most transactions involving the Government of Iran, the
  Central Bank of Iran and all Iranian financial institutions to be
  rejected – that is, they could not pass through the U.S. financial
  system, but instead were turned back. Under the new E.O.,
  transactions involving the Government of Iran, the Central Bank of Iran
  and all Iranian financial institutions that previously would have been
  rejected will now be blocked.

• All entities that meet the existing
  definition of “Government of Iran,” such as Iranian ministries,
  state-owned entities and commercial firms owned or controlled by the
  Government of Iran, are blocked. This includes entities
  bearing the [IRAN] tag on the Treasury Department’s Office of Foreign
  Assets Control’s (OFAC) List of Specially Designated Nationals and
  Blocked Persons (SDN List). Transactions by U.S. persons involving such entities are now blocked unless exempt or otherwise authorized. OFAC will continue to update the SDN List and may add, delete, or edit existing entries as appropriate.

• The E.O. does not change the sanctions
  that may be applied against foreign financial institutions engaging in
  arms-length transactions with certain Iranian financial institutions,
  including the Central Bank of Iran. Those foreign
  financial institutions remain at risk of U.S. sanctions if they engage
  in certain significant financial transactions with the Central Bank of
  Iran or certain other designated Iranian financial institutions pursuant
  to the NDAA, or the Comprehensive Iran Sanctions, Accountability, and
  Divestment Act of 2010 (CISADA).

2. Treasury
is issuing general licenses to maintain existing authorizations for
certain transactions that advance U.S. foreign policy interests.

• Persons who currently use general or
  specific licenses from OFAC for transactions involving the Government of
  Iran or Iranian financial institutions should consult the OFAC website
  for new general licenses and other information on whether those
  transactions remain authorized under the new E.O.

Delegations of Authority under the New Executive Order:

The E.O. also delegates other authorities provided in section 1245(d) of the NDAA.

• The E.O. delegates a number of other
  authorities provided in section 1245(d) of the NDAA, primarily to the
  Departments of the Treasury and State. These delegations will facilitate the implementation of section 1245 of the NDAA.

• Additional information describing the
  implementation of the NDAA under these delegated authorities will be
  made available in the near term.

To view the OFAC guidance on this E.O., please this link.

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