Iranian Americans Facing OFAC Licensing Delays for Iran Property Sales, Law Firm Says
Lengthy license response times at the Office of Foreign Assets Controls are keeping many Iranian Americans from selling assets in Iran, especially if those assets are properties that have been gifts, Yazdanyar Law Offices said in a client alert this month.
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U.S. people are normally allowed to sell certain property in Iran under a general license if that property was acquired before they became a U.S. person or through inheritance, the law firm said. But U.S. people who receive property as a gift must apply for an individual license at OFAC to sell the property.
A “surge” in license applications has led to a “backlog” at OFAC, the firm said, “overwhelming the government’s capacity to process them in a timely manner.” The firm said some applicants have waited more than two years for a response.
It called these delays “detrimental to both individual applicants and U.S. sanctions policy goals.” Not only are Iranian Americans losing money as the value of Iranian property decreases, but it’s also causing some property owners to avoid applying for a license.
“This runs counter to U.S. sanctions objectives, as it keeps American assets in sanctioned countries like Iran,” Yazdanyar said.
The firm called for a “more efficient system” that processes specific license applications in a “reasonable” time frame. “By streamlining the current process, the U.S. government could encourage Iranian Americans to divest from their Iranian assets, supporting the broader goals of U.S. sanctions policy,” it said. “We hope that the U.S. government takes these factors into consideration and reforms OFAC’s license review process for specific license applications.”
A Treasury spokesperson didn’t immediately respond to a request for comment.