U.S. OFAC Warning: Paying "Strait of Hormuz Transit Fees" to Iran via digital assets and other forms carries sanctions risks

BlockBeats news: On May 2, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) stated that it has taken note of threats issued by Iran against shipping, and of conduct requiring payment of “tolls” through the international Strait of Hormuz in order to obtain safe passage. These requests may include multiple payment methods, such as fiat currency, digital assets, offset arrangements, informal exchanges, or other forms of payment in kind—for example, making nominal charitable donations to the Iranian Red Crescent, the Bonyad Mostazafan Foundation, or accounts of the Iranian embassy. OFAC issued this advisory to remind U.S. and non-U.S. entities that paying related fees to the Iranian regime or seeking passage guarantees involves sanctions risks, regardless of the payment method.

Under U.S. sanctions regulations, U.S. persons and overseas entities that they own or control are generally prohibited from engaging in transactions with the Iranian government, including providing or receiving services, unless they obtain an exemption or authorization. At the same time, U.S. persons are also prohibited from engaging in transactions with the Iranian Islamic Revolutionary Guard Corps (IRGC), which has been listed on multiple sanctions lists and designated as a Foreign Terrorist Organization. U.S. persons are also generally not allowed to transact with Iranian digital asset trading platforms that are viewed as sanctioned Iranian financial institutions.

In addition, if non-U.S. persons engage in unauthorized transactions with the Iranian government or the IRGC, they may also face sanctions risks, including “secondary sanctions” that restrict their access to the U.S. financial system. Doing business with sanctioned Iranian digital asset trading platforms may also be viewed as supporting Iran’s sanctioned financial system and lead to sanctions. If the relevant transactions cause U.S. persons (such as insurance companies, reinsurance firms, or financial institutions) to violate sanctions regulations, non-U.S. persons may also face civil or criminal liability.