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U.S. Treasury Warns Iran Strait of Hormuz Passage Payments Could Trigger Sanctions

According to OFAC, payments to Iran for safe passage through the Strait of Hormuz, including digital assets, may violate U.S. sanctions and require enhanced due diligence.

Summary

OFAC warned that payments to Iran for safe passage through the Strait of Hormuz, including digital assets, may violate U.S. sanctions. The notice said U.S. persons and foreign entities owned by U.S. persons generally cannot transact with Iran, the IRGC, or Iranian crypto exchanges. It also urged shipping and maritime firms to conduct enhanced due diligence when dealing with routes or payments linked to Iran.

Terms & Concepts
  • OFAC: The U.S. Treasury office that administers and enforces economic and trade sanctions.
  • U.S. sanctions: Restrictions imposed by the United States to limit transactions with designated countries, entities, or individuals.
  • IRGC: The Islamic Revolutionary Guard Corps, an Iranian military and security organization frequently subject to U.S. sanctions.