NEWSLETTER-2019-metin

385 MISCELLANEOUS • The Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA). In light of the relevant statutes and other legislation, these sanc- tions, overall, may include trade restrictions, asset freezes, arms em- bargoes, capital restraints and travel bans. The sanctions targeting Iran are also unique because the OFAC and the President are authorized to target foreign persons and foreign financial institutions that do business with Iran by imposing secondary sanctions against them. In this regard, economic sanctions imposed by the US generally fall under two separate categories: primary (or direct); and secondary sanctions. Primary (Direct) Sanctions Primary sanctions prohibit US persons or entities from engaging in specified activities with certain countries, entities, or individuals. A US person includes: • US citizens (wherever located); • Permanent US resident foreigners (also known as lawful permanent residents); • Entities organized under US law (e.g., corporations); • All entities and persons located in the US; and • Entities owned or controlled by US citizens. In addition, even if a party to a transaction is not directly a US person, if there is a “ US nexus ” in the transaction; primary sanctions may still be relevant. Whilst there is no simple description of what a US nexus could be, considerations may include whether a party has: • US subsidiaries, branches or offices; • US citizens or permanent resident employees; • US counterparties or financiers; • Dealings in US-origin goods or services;