How can a US citizen legally borrow money from family who lives in Iran with all the current sanctions in place?

Asked over 1 year ago - Houston, TX

I read an article on OFAC about "non-commercial family remittance" being allowed for transactions between Iran and US. So If I want to borrow money from my family in Iran to help me start a business, does that fall under the "non-commercial family remittance" program allowed by OFAC? If not, what is the best way to move forward with this task? I greatly appreciate any feedback.

Additional information

Also, would the transfer have be done via wire to a US financial institution from a non-Iranian financial institution?

Attorney answers (6)

  1. Igor Serbinin

    Pro

    Contributor Level 12

    3

    Lawyers agree

    Answered . Look for attorney in your area specializing in Export Compliance issues. The name is a misnomer because you are not exporting anything to Iran however the firms that specializing in export compliance are familiar with OFAC and other government regulations controlling transfer of funds from certain countries. My firm handles such transactions however it is best to find local help in these cases.

  2. Luca Cristiano Maria Melchionna

    Contributor Level 16

    2

    Lawyers agree

    Answered . The situation is particularly complex. There are strict regulations that have to be observed. This is something that needs to be solved with the hiring of a transnational attorney. Best

    This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given... more
  3. Jonathan H Levy

    Contributor Level 20

    2

    Lawyers agree

    Answered . OFAC penalties are very harsh. This would require a careful look at both your situation and the rules as to Iran. Using a bank complicates matters as well.

    This is not legal advice but a general comment on society based on a limited set of hypothetical circumstances.... more
  4. Pradnya Pradhan Desh

    Contributor Level 10

    2

    Lawyers agree

    Answered . Generally, OFAC has general licenses (that cover a class of activities) and specific licenses (that require specific approval). By looking at the non-commercial family remittance, you are trying to fit under one of the two applicable general licenses OFAC issued last year after the Iran sanctions were amended. General licenses have very specific requirements. I would need a lot more information to make a conclusion, but it does not appear that this transaction would qualify.

    I do agree with my colleagues that it is best to get an attorney who handles US sanctions law. Penalties for violating US sanctions are very high, which makes "do it yourself" risky in this body of law. Your attorney would gather all of the facts to see whether this fits under an OFAC general license or could help you apply for a specific license. My firm handles this type of work. Please feel free to call or email me, if you would like.

    Nothing in this post should be construed as legal advice or as creating an attorney-client relationship.  Do not... more
  5. Jeffrey Jose Estrella

    Contributor Level 13

    1

    Lawyer agrees

    Answered . Hire a lawyer to protect your legal rights.
    Jeffrey J. Estrella, Esq.
    Licensed Attorney and Counsellor At Law/Abogado y Licensiado
    Licensed in New York, New Jersey, and Connecticut
    The Estrella Law Firm, P.C.
    75-20 Astoria Boulevard, Suite 170
    Inside The Bulova Corporate Center
    Jackson Heights, NY 11370
    T. (347) 628-2391
    F. (718) 672-4728
    E. Estrella.Jeffrey@gmail.com
    www.EstrellaLawyer.com

    The answers posted herein are not legal advice and no attorney-client relationship exists. Call for a free 20... more
  6. Vladimir M. Gorokhovsky

    Contributor Level 9

    1

    Lawyer agrees

    Answered . You need to consult with an attorney specializing in cross-boarder business transactions with Ira. I suggest contacting large law firms. Regards.

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