"U.S. Sanctions Update: Non-U.S. Entity Activity with Iran and Other Sanctions Targets Now Required to be Disclosed to the SEC"

U.S. Sanctions Update: Non-U.S. Entity Activity with Iran and Other Sanctions Targets Now Required to be Disclosed to the SEC, Additional U.S. Sanctions Targeting Non-U.S. Business with Iran Imposed, and OFAC Sanctions Regulations Amended 

Issuers subject to the jurisdiction of the Securities and Exchange Commission (“SEC”), as well as, more broadly, many non-U.S. companies should be aware of the potential impact of the latest expansion of U.S. economic sanctions laws targeting Iran and other areas, such as international terrorism. Beginning on February 6, 2013, issuers required to file periodic reports under Section 13(a) of the Securities Exchange Act of 1934 that engage, or have any “affiliates” that engage, in a broad range of activities covered by a recent statute are required to disclose those activities to the SEC, without regard to the materiality of such activities. Such issuers will need to consider carefully how to identify when their affiliates (which may include the issuer’s directors and executive officers) are engaged in such activities so they can comply with the new disclosure requirements. A separate new law expands the range of activities relating to Iran and certain parties targeted as national security threats that, even if conducted by businesses outside of the United States, will be sanctionable by the U.S. government. U.S. companies engaged directly or indirectly in international business should evaluate whether their business activities now could be subject to sanctions, and, in order to avoid becoming subject to sanctions, undertake measures to prevent those activities from occurring in the future.


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