U.S. OFAC Warning: Sanctions Risk of Paying Iran's "Strait of Hormuz Transit Fee" in the Form of Digital Assets

BlockBeats News, May 2nd, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) stated that it has noted Iran's threats to shipping, as well as the requirement for vessels to pay a "transit fee" through the international waters of the Strait of Hormuz to ensure safe passage. These requests may involve various forms of payment, such as fiat currency, digital assets, offset arrangements, informal exchanges, or other forms of payment in kind, such as ostensible charitable donations to the Iranian Red Crescent, the Bonyad Mostazafan Foundation, or Iranian embassy accounts. OFAC issued this warning to remind U.S. and non-U.S. persons that there are sanctions risks associated with paying fees to the Iranian regime or seeking passage assurances, regardless of the method of payment.

Under U.S. sanctions regulations, U.S. persons and their owned or controlled foreign entities are generally prohibited from engaging in transactions with the Iranian government, including providing or receiving services, unless exempted or authorized. Additionally, U.S. persons are also prohibited from transacting with the Islamic Revolutionary Guard Corps (IRGC), which is subject to multiple sanctions lists and designated as a foreign terrorist organization. U.S. persons are typically not allowed to transact with Iranian digital asset exchanges, which are considered sanctioned Iranian financial institutions.

Furthermore, non-U.S. persons engaging in unauthorized transactions with the Iranian government or IRGC may also face sanctions risks, including the imposition of "secondary sanctions" on relevant financial institutions, restricting their access to the U.S. financial system. Conducting business with sanctioned Iranian digital asset exchanges may also be seen as supporting the sanctioned Iranian financial system and could result in sanctions. If such transactions cause U.S. persons (such as insurance companies, reinsurance entities, or financial institutions) to violate sanctions regulations, non-U.S. persons may also face civil or criminal liability.