Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Threat Reduction and Syria Human Rights Act of 2012 and Additional Sanctions With Respect to Iran

This executive order authorizes the Treasury and State Departments to implement sanctions against persons and entities supporting Iran's government, particularly those involved in human rights abuses, censorship, and petroleum trade. It blocks U.S.-controlled foreign entities from transactions with Iran that would be prohibited if done domestically, with a divestment deadline, and amends prior sanctions orders.

Federal Register Open PDF 77 FR 62139

Impact dates

Feb 6, 2013
U.S. persons must divest or terminate business with controlled foreign entities to avoid penalties for prohibited Iran transactions

Key directives

Secretary of Treasury, in consultation with Secretary of State, shall implement selected ISA sanctions including loan prohibitions, foreign exchange blocking, credit transfer bans, property blocking, investment bans, executive officer sanctions, and import restrictions
Block all property of persons transferring goods/technologies to Iran for human rights abuses on or after August 10, 2012
Block all property of persons engaged in censorship or media jamming in Iran on or after June 12, 2009
Prohibit U.S.-controlled foreign entities from transactions with Iran that would be prohibited if done by U.S. persons
Secretary of State authorized to impose sanctions on persons who knowingly sold petroleum-related goods/services to Iran between July 1, 2010 and August 10, 2012 above threshold values
Denial of Export-Import Bank support, export licenses, government contracts, and primary dealer status for sanctioned persons
Suspend entry into U.S. of aliens meeting criteria in sections 2(a) and 3(a)
Amend Executive Order 13622 to delete certain jurisdictional limitation language and add 'agricultural commodities' exception

Who is ordered

Timeline

Immediate

Sanctions authorities take effect upon signing
Blocking of property for designated persons begins
Visa suspension for covered aliens takes effect

Near term (90d)

U.S. persons must divest or terminate business with controlled foreign entities by February 6, 2013 to avoid penalties

Long term

Ongoing sanctions implementation and designations by State and Treasury
Continued enforcement of petroleum-related sanctions for pre-August 2012 activities
Potential expansion of sanctions through delegated authorities

Risks & tensions

Extraterritorial application to U.S.-controlled foreign entities may create compliance conflicts with host country laws
Retroactive lookback to June 2009 for censorship activities and July 2010 for petroleum activities creates legal uncertainty for past conduct
Broad delegation to Secretaries of State and Treasury with limited procedural safeguards for designated persons
Section 19's reference to 1981 Algiers Accords suggests careful legal positioning regarding U.S.-Iran claims tribunal obligations
Visa ban criteria in sections 2(a) and 3(a) are determination-based with no explicit due process mechanism in the EO text