Managing the Risks of a U.S.-Iran Nuclear Deal Withdrawal
Corporate Compliance Insights
In this article, Brian Fleming discusses the proactive steps non-U.S. companies can take to manage their risk in the face of the United States' potential withdrawal from the Joint Comprehensive Plan of Action (JCPOA). Following a review of the potential consequences of the U.S. withdrawing from the deal, he discusses the practical steps that non-U.S. companies can take to manage risk and safeguard against future enforcement actions. These steps include, among others, proactively managing any existing commercial commitments in Iran and intelligently weighing the risks of entering into any new commitments, paying close attention to the pace of U.S. enforcement of secondary sanctions, and for non-U.S. financial institutions, conferring with U.S. correspondent banks and any other U.S.-based financial institutions integral to business functions. "Because it has been less than two years since Implementation Day, your company may be well positioned to adapt to the possible re-imposition of U.S. secondary sanctions," Fleming wrote. "Revisiting your pre-JCPOA compliance policies is a good place to start. However, even if you conclude that a reversion to prior policies would be a sufficient solution, you may be in a position to make improvements."