U.S. Government Announces Pause in Iran Sanctions

On January 20, 2014, the U.S. Government announced that the International Atomic Energy Agency has confirmed that Iran has taken the initial steps toward the Joint Action Plan between the P5+1 (United States, United Kingdom, France, Germany, Russia, China, and Iran) and therefore it will begin implementation of the plan including the relaxing of some Iran sanctions. The Office of Foreign Assets Control released guidance and a “FAQ” document on January 20, 2014, explaining the changes. While there are some opportunities for limited transactions involving Iran, companies should enter very cautiously with the understanding that the regulatory relaxation may be only temporary and hinges upon further compliance by Iran.