US Suspends Iran Remittance Exemption, Putting Family Transfers in Limbo
The United States ends long-standing mechanism for personal money transfers, requiring senders to seek individual approval
By Abdullahi Yusuf
People in the United States who send money to relatives in Iran could face new restrictions after U.S suspended a long-standing mechanism that allowed certain personal remittances to move between the two countries.
The US Treasury has suspended the general licence that had permitted non-commercial, personal remittances to and from Iran, according to a notice published by the department.
The measure forms part of Washington’s broader sanctions regime against Iran, which has been in place for decades and restricts a wide range of financial and commercial transactions involving the country.
Under the previous arrangement, individuals could send personal, non-commercial remittances to Iran through a specific mechanism involving financial intermediaries in third countries.
The exemption meant that people in the US could provide financial support to family members in Iran without having to obtain individual approval from the US government, provided the transactions met the conditions of the general licence.
That arrangement has now been suspended.
Under the suspended exemption, anyone seeking to make such a transaction would now need to apply for a specific licence from the Office of Foreign Assets Control (OFAC), the Treasury agency responsible for administering and enforcing US sanctions.
The change could create additional uncertainty for Iranian families who rely on relatives in the United States for financial assistance.
It also shifts personal remittances from a transaction covered by a general exemption to one requiring individual authorisation from US authorities.
The move comes as U.S continues to use economic restrictions as a tool of pressure against Tehran.
For Iranian families separated between the two countries, however, the impact of the policy is likely to be felt not through large commercial transactions but through the ordinary flow of money between relatives.
The suspension means that sending financial support to family members in Iran may now involve an additional regulatory hurdle, even where the purpose of the transfer is personal rather than commercial.
The Treasury measure therefore adds another layer of uncertainty to financial ties between Iranian families in the US and relatives in Iran, as Washington tightens the rules governing transactions involving the country.
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