This past Sunday, the nuclear agreement between the U.S., other major world powers, and Iran (also known as the Joint Comprehensive Plan of Action – “JCPOA”) hit a critical benchmark, Adoption Day. As of Adoption Day, the JCPOA is in effect and all parties are obligated to undertake their nuclear- or sanctions-related commitments pursuant to Annex V of the JCPOA.

As required under the JCPOA, the United States marked the day by undertaking certain actions related to sanctions relief for Iran. First, the President issued a Presidential Memorandum instructing certain Cabinet-level officials “to take all appropriate additional measures to ensure the prompt and effective implementation of the U.S. commitments set forth in the JCPOA, in accordance with U.S. law.” Specifically, the President

…direct[ed] [certain Cabinet-level officials] to take all necessary steps to give effect to the U.S. commitments with respect to sanctions described in section 17 of Annex V of the JCPOA, including preparation for the termination of Executive Orders as specified in section 17.4 and the licensing of activities as set forth in section 17.5, to take effect upon confirmation by the Secretary of State that Iran has implemented the nuclear-related measures specified in sections 15.1-15.11 of Annex V of the JCPOA, as verified by the IAEA.

Separately, the President issued another Presidential Memorandum, which re-delegated waiver authorities for § 213(b) of the Iran Threat Reduction Act from the Secretary of Treasury to the Secretary of State. As is evident, activities related to U.S. sanctions relief for Iran will be processed through the U.S. State Department, which took the lead in negotiating the agreement with Iran.

Secretary of State John Kerry issued a press statement announcing Adoption Day and the steps the U.S. was prepared to take to meet its obligations under the JCPOA. In this regard, Secretary Kerry stated that the U.S. was “taking contingent action with respect to the waivers of certain statutory nuclear-related sanctions. These waivers will not take effect until Implementation Day, after Iran has completed all necessary nuclear steps, as verified by the IAEA.” (Those waivers can be found here.)

Secretary Kerry also noted that U.S. Ambassadors Tom Shannon and Steve Mull – the latter appointed by President Obama to lead efforts to ensure the effective implementation of the JCPOA – “will represent the U.S. at the first meetings of the Joint Commission created by the JCPOA” in Vienna on October 19^th. The Joint Commission will undertake efforts to “ensur[e] that all participants remain on track for Implementation Day.” Pursuant to the JCPOA, the U.S., alongside the European Union and its Member-States, “will begin consultation as appropriate with Iran regarding relevant guidelines and publicly accessible statements on the details of sanctions or restrictive measures to be lifted under th[e] JCPOA.”

The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) also got into the mix, issuing both a statement and a new set of Frequently Asked Questions (“FAQs”) relating to Iran sanctions. The main message of the FAQs is that no U.S. sanctions related to Iran – other than those outlined in the Joint Plan of Action (“JPOA”) – will be lifted until Implementation Day, which is the day on which the IAEA verifies that Iran has undertaken all of its key nuclear-related commitments under the JCPOA.

Moreover, OFAC’s new FAQs noted that non-U.S. persons entering into contracts involving Iranian entities prior to Implementation Day may be sanctioned under existing U.S. sanctions, including in certain cases where the contract is contingent on the implementation of sanctions relief under the JCPOA (particularly where an Iran-linked SDN is involved). Non-U.S. companies visiting Iran on foreign trade delegations should be aware of the scope of current U.S. sanctions and the fact that most of these sanctions will not be lifted until Implementation Day.

OFAC is committed to issuing further guidance on U.S. sanctions relief contemplated under the JCPOA in the weeks ahead, particularly as it consults with its European partners and Iran. This guidance will be critical to apprising interested parties on how the U.S. government intends to interpret the scope of the sanctions relief as outlined under the JCPOA.