It’s not often that I feel bad for the United States Department of the Treasury Office of Foreign Assets Control (“OFAC”), however, after getting slammed in a articleby the New York Times last week for licensing various transactions with Iran and other countries that have sanctions programs imposed upon them, I thought someone should come to their defense.

The article went into some detail about the Trade Sanctions Reform and Export Enhancement Act of 2000 (“TSRA”), accusing it of being pushed through by the American agricultural lobby and promoting the interests of farmers over those of American foreign policy objectives. This belief was supported by Hal Eren, another D.C. based attorney working on OFAC issues and a former OFAC official, who stated in relation to allowing bubble gum to be exported under the TSRA program that OFAC “was probably rolled on that issue by outside forces.” It should be noted that the TSRA program allows for the export to Iran of agricultural commodities, medicine, and medical devices.

In relation to Iran, The New York Times article clearly fails to consider the legacy that sanctions will leave behind. Iranians have a strong cultural identity and a long memory. Many Iranians, living either in Iran or abroad, still remember and are upset about the CIA coup of Prime Minister Mohammed Mossadegh in the 1950s. Even if the Islamic Republic fell tomorrow and the sanctions were removed, surely, Iranians will remember suffering under the weight of U.S. economic sanctions for the last 15 years. How that will play into the stance towards the U.S. of any future government there could be problematic; even more so if OFAC had not been licensing exports of articles such as agricultural commodities, medicine and medical devices. In short, to say that electing to authorize exports of such articles is entirely the result of choosing business interests over foreign policy considerations is absurd.

Regardless of the article’s political bent, it does highlight the fact that the licensing program is available for those seeking to engage in authorized transactions with Iran. Many times clients come to me with a “woe is me” attitude towards applying for a license and receiving one. They believe it will not happen and often times they ask me for advice on circumventing the sanctions. My response is always the same: THERE IS NO WAY TO CIRCUMVENT THE SANCTIONS. Those employing methods to do so will eventually be caught by OFAC (or worse, the Department of Justice) and will face the severe consequences for doing so. As evidenced by the article, licenses are obtainable. If you seek to do business with Iran or in relation to Iran, make sure to obtain the appropriate authorization before engaging in the transactions.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.