How to Send Money To/From Iran

Updated October 2026

Sending money to Iran is not automatically unlawful, but it is tightly restricted. A transfer may proceed only when a General or Specific OFAC License authorizes it. Non-commercial personal remittances, such as family support, can qualify under 31 CFR § 560.550 if they go through the formal banking system and involve no SDN-listed party. Transfers outside these conditions can be blocked, and the funds may be frozen or returned.

Transferring money between Iran and the USA or Europe has become extremely difficult due to strict restrictions by the Office of Foreign Assets Control (OFAC). Banking relations between the countries are officially prohibited. This means that traditional methods, such as SWIFT, are unavailable. The lack of access to such standard tools forces people to look for alternative ways to transfer money from their bank accounts to Iran. For specific rules on bank wire transfers to Iran and which payment channels remain OFAC-compliant, see the sections below. Most often, private intermediaries or small financial services in a third country operating outside the traditional banking system are used for this purpose. Note: cryptocurrency transfers involving Iran are not a legal alternative — they carry the same OFAC prohibitions as direct bank transfers.

Since direct “U-Turn” transactions (Iran-US) are prohibited, legal transfers typically involve a transparent banking chain through a third country (e.g., Turkey, UAE, or EU). The legal route usually looks like this: Iranian Bank (Non-SDN) → Third Country Bank → Correspondent Bank → US Bank. However, this is only permissible if the underlying transaction is authorized by a General or Specific License.

To make a money transfer to Iranian banks, it is necessary to obtain a license or use the services of intermediaries. Intermediaries usually provide the opportunity to bypass sanctions, but this is often associated with high risks, including the possibility of fraud or legal complications. In addition, such transfers are often accompanied by high fees.

Many intermediaries operate via the “Hawala” system (informal value transfer). While common in the region, using an unlicensed money transmitter is a violation of US law (31 CFR § 560.550 requires funds to pass through the formal banking system). Using Hawala can lead to funds being seized without recourse.

Before conducting a transaction, it is necessary to determine whether the transfer falls under the current OFAC licenses. If the transaction does not fall under these licenses, you will need to apply for a special permit. For example, if you are sending money to Iran to support your family (personal remittances), it is important to provide a detailed description of the purpose of the transfer and prove that it is a non-commercial operation.

Our company provides professional legal assistance in this process. We will help you gather the necessary documents, submit the application, and monitor its review, ensuring transparency and security for your money transfer operation to Iran.

The use of cryptocurrencies for transferring money between Iran and the USA has become popular due to sanctions regulations on traditional financial channels. OFAC allows the use of cryptocurrencies, but this method also has its risks. Cryptocurrency transactions are not always regulated in the same way as traditional financial operations. This creates opportunities to bypass Iran sanctions but can also lead to serious legal consequences.

The landscape for cryptocurrency has changed drastically. In 2025 and early 2026, OFAC began sanctioning entire cryptocurrency exchanges and wallet clusters associated with Iranian traffic (e.g., recent actions against platforms like Zedcex). Blockchain analytics firms (like Chainalysis) now flag wallets interacting with Iranian IPs. Using USDT (Tether) for transfers is no longer a “grey area”—it is strictly monitored, and assets can be frozen on the blockchain level.

When sending money to Iran using cryptocurrencies, it is important to comply with all applicable rules and regulations. For example, you must know the exact source of funds and ensure that all parties involved in the transaction adhere to OFAC rules. If the transaction is found to be illegal, it may result in funds being blocked or legal proceedings. Cryptocurrencies provide speed and convenience, but you should not underestimate the risks associated with their use. If you want to learn more about the safe use of cryptocurrencies for transfers, contact our lawyers. We will provide you with recommendations for optimal solutions.

Under 31 CFR § 560.550, non-commercial personal remittances to or from Iran, for example support for family members, are authorized when they are processed through the banking system and do not involve sanctioned (SDN) entities. Payments tied to goods, investments or sanctioned parties are not covered and need a separate General or Specific License.

To send money to Iran from the USA, the transfer must qualify as a non-commercial personal remittance under 31 CFR § 560.550 — family support, emergency assistance, or similar personal transfers, not payments tied to goods, investments, or sanctioned entities. Since there’s no direct banking relationship between the U.S. and Iran, funds route through a correspondent or third-country bank, which adds time and fees compared to a domestic wire.

Transfers must go through a registered bank, credit union, or licensed broker-dealer, and the institution will verify the transfer’s purpose, your relationship to the recipient, and the source of funds under standard AML/KYC procedures — the same checks apply whether you’re sending or receiving. Some personal transfers qualify automatically under existing general licenses, without a separate OFAC application; anything connected to a SDN-listed party does not.

Keep receipts, confirmations, and correspondence documenting the transfer’s purpose — if OFAC or your bank later asks questions, this is what supports your explanation.

Because direct banking relations between the United States and Iran are prohibited, people are often offered private intermediaries or small financial services in a third country that operate outside the traditional banking system. These routes carry high risks, including fraud, high fees and legal complications.

A transfer can be blocked or returned when the route is not backed by a license, or when a blocked Iranian party is indirectly involved: under 31 CFR § 560.211, property in which the Government of Iran or an Iranian financial institution has an interest is blocked. Informal value transfer systems such as Hawala are not a safe alternative. Using an unlicensed money transmitter violates US law, and funds sent this way can be seized without recourse.

A lawful structure typically uses a transparent banking chain through a third country, for example Turkey, the UAE or the EU, and only when the underlying transaction is authorized by a General or Specific License.

Banks verify the purpose of the transfer, your relationship to the recipient and the source of funds under standard AML/KYC procedures. It is useful to have ready:

Keep receipts, confirmations and correspondence documenting the purpose of the transfer. If OFAC or your bank later asks questions, these documents support your explanation.

Money coming from Iran is assessed under the same rules. Under 31 CFR § 560.543, the sale of real property in Iran and the transfer of the proceeds to the US is authorized only if the property was acquired before the individual became a US person or was inherited. Buying new property, or selling property acquired after moving to the US, almost always requires a Specific License. For inherited assets, see our guide on Iran inheritance and OFAC licensing.

Under the strict sanctions regulations against Iran, transactions with local entities may be subject to blocking or return of funds. However, not all cases are a direct result of intentional violation of the law. Often, the reasons lie in the absence of the necessary license, inaccuracies in documents, or incomplete understanding of OFAC rules:

A lawyer specializing in sanctions legislation will analyze the details of the return: reasons, accompanying documents, the positions of the bank and OFAC. This will help identify whether there was an error in the documentation or actual signs of sanctions violations.

If the transaction simply requires additional information or clarifications, the solicitor will prepare letters with explanations. Your lawyer will also gather the necessary documents so that the payment can be safely processed again.

If interaction with Iranian counterparties is necessary (for personal transfers, non-commercial purposes, or special programs), an individual OFAC licence may be required. A lawyer will handle the application process, preparation of business plans, and justifications for the regulator.

Often, the decisive factor is communication with the bank since it’s important to prove that the transaction does not violate sanctions or comply with one of the general licences. A lawyer will be able to take on the negotiations, ensuring proper interaction between all parties.

To avoid repeated mistakes, the OFAC lawyer will develop a set of standard documents and procedures (KYC, counterparty checks, payment order forms) that will help to correctly conduct settlements in the future and avoid freezes.

Our company has experience and expertise in matters of interaction with OFAC, preparing the necessary applications, and conducting negotiations with banks. If you have encountered a funds return or want to protect your transactions from blockages in advance, contact us. We will provide qualified assistance, prepare documentation, and ensure compliance with all requirements of sanctions legislation.

OFAC regularly imposes multimillion-dollar fines on banks, payment systems, and private companies caught circumventing or violating sanctions against Iran. In particularly severe cases, even criminal liability or blocking access to the American financial system is possible.

The publication of facts about sanctions violations often leads to a loss of clients and partners, as well as distrust in future deals. In the context of the international market, companies and individuals cannot ignore OFAC requirements, as they risk losing important financial instruments and accounts in banks operating in US dollars.

Any transaction deemed suspicious may be blocked indefinitely, resulting in the loss of control over financial assets until all circumstances are clarified.

Organizations that frequently conduct transactions with sanctioned entities must carry out systematic audits to identify potential vulnerabilities. As part of the audit, specialists analyze payment documents, transfer routes, counterparties, and compliance with sanction lists.

Consultation with lawyers specializing in sanctions law will help the company avoid irreversible consequences and protect its reputation. Lawyers will assist in preparing OFAC licences, check counterparties, interact with banks, or represent interests in potential disputes.

If you encounter difficulties when trying to transfer money to Iran or from Iran, our team of lawyers is ready to help. We specialize in issues related to OFAC sanctions and have extensive experience with licensing. Our goal is to provide you with a safe and legal way to conduct financial transactions. In many cases, these issues are closely connected with sanctions in Iran, and people often wonder if it is legal to send money to Iran.

We will help you determine which license is required in your case and will assist you at every stage. We will also ensure that all documents are thoroughly reviewed and that your activities comply with current legislation. With us, you will receive professional support that will help you avoid mistakes and minimize risks. Our specialists are ready to answer all your questions and find the optimal solution for your situation. If the transfer relates to funds inherited from Iran, additional licensing requirements apply. See our guide on Iran inheritance and OFAC sanctions.