How to Send Money to Iran From USA

Sending money from the United States to Iran involves complex regulations and restrictions. Due to U.S. sanctions, direct financial transactions are largely prohibited, creating challenges for individuals seeking to transfer funds. Understanding legal frameworks and permissible channels is essential. Authorized avenues exist for non-commercial purposes, enabling individuals to support family or address humanitarian needs.

Understanding the Legal Landscape for Transfers

The Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury governs financial transactions between the U.S. and Iran. OFAC administers comprehensive sanctions programs designed to pressure Iran regarding its nuclear program, alleged support for terrorism, and human rights issues. These sanctions limit Iran’s access to the global financial system, generally prohibiting direct banking relationships between U.S. and Iranian financial institutions. Traditional international transfer methods, such as the SWIFT network, are typically unavailable.

Despite these broad prohibitions, OFAC issues general licenses that authorize specific categories of transactions without requiring an individual application. These general licenses permit certain non-commercial, personal remittances, which include funds for family support, gifts, and inheritances. Transfers for humanitarian purposes (medical expenses, food) or educational expenses may also be authorized under these provisions.

For a transaction to fall under a general license, it must be strictly non-commercial in nature. Additionally, no party involved (sender, recipient, or intermediary financial institution) can be listed on OFAC’s Specially Designated Nationals (SDN) list. Transactions that do not fit within the scope of a general license require a specific, written authorization from OFAC. Obtaining such a specific license involves a detailed application process, which can be complex and time-consuming.

Compliance with OFAC regulations is essential, as any unauthorized transfer can lead to severe penalties, including substantial fines and potential criminal prosecution. Financial institutions operating in the U.S. are obligated to block transactions that violate these sanctions. This strict enforcement means individuals and entities must exercise diligence to ensure their transfers adhere to all applicable rules.

Identifying Permissible Transfer Channels

Given the strict regulatory environment, direct bank transfers between U.S. and Iranian banks are not feasible for individuals. Instead, authorized financial transfers between the two countries typically require routing through a third-country bank or financial institution outside the U.S. and Iran. This intermediary approach helps to maintain compliance with U.S. sanctions while facilitating permissible transactions.

Licensed money transmitters are primary channels for sending funds to Iran. These services operate under OFAC licenses, facilitating non-commercial, personal remittances. Providers such as Wise (formerly TransferWise) and MoneyGram are examples of services that may offer such transfers, provided they comply with all U.S. regulations. Many traditional money transfer services, including Western Union and PayPal, generally do not support direct transfers to Iran due to ongoing sanctions.

These licensed money transmitters conduct rigorous compliance checks on each transaction. They ensure the purpose of the transfer is non-commercial, like family support or medical aid, and verify that no sanctioned individuals or entities are involved. The services typically handle the routing of funds through compliant international banking channels, often via a third country. This structured approach ensures transfers remain within OFAC’s legal boundaries.

When using these services, senders should be aware of the associated fees and exchange rates. Fees can vary, often consisting of a flat charge, a percentage of the transfer amount, or a combination of both. Exchange rates provided by these services typically include a markup over the interbank rate.

Transfer speeds can vary, with some services offering delivery from minutes to 24 hours, while others may take several business days. Factors like the specific service, payment method, and recipient’s location can influence processing time. It is important to avoid informal value transfer systems, like hawalas, as these methods carry significant risks, including legal complications, fraud, and are prohibited under U.S. sanctions.

Gathering Necessary Information for Your Transfer

Before initiating any money transfer to Iran, gathering required information and documentation is essential. This ensures a smooth, compliant transaction. Senders must provide their own identification details, typically government-issued ID (driver’s license or passport) and proof of address (utility bill). This is standard for financial institutions to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

The recipient’s complete and accurate information is also important. This includes their full legal name, current address, and reliable contact information, like a phone number or email address. If the funds are intended for a bank account, the recipient’s bank name, SWIFT/BIC code, and account number are necessary. For cash pickup services, the sender must specify the recipient’s preferred cash pickup location in Iran.

The exact purpose of the transfer is important. Due to strict sanctions, the reason for sending money must be clearly stated and align with permissible non-commercial categories. Examples include family support, medical expenses, or educational costs. Some transfer services may also require information regarding the source of funds to ensure they originate from legitimate activities.

Senders must also specify the exact amount they wish to send and confirm the currency the recipient will receive (typically Iranian Rial (IRR)). Understanding currency conversion details and the exchange rate is important for managing expectations. Any reference numbers or codes provided by the transfer service during initial setup should be noted. Senders should be prepared to complete specific forms provided by the chosen transfer service, accurately inputting all details.

Steps for Completing Your Money Transfer

Once information is gathered, the money transfer process can begin. Access the chosen money transfer service via their online portal, mobile app, or an authorized agent. Input all prepared details: sender’s information, recipient’s details, exact amount, and declared non-commercial purpose.

Carefully review all entered data, verifying the accuracy of the recipient’s name, bank account, and contact information, as errors can cause delays or complications. Then, select a payment method. Common options include funding from a U.S. bank account (ACH or wire transfer) or using a debit card. Credit cards may be an option but often incur higher fees, including cash advance charges.

Before finalizing, the service displays a transfer summary, including total fees, exchange rate, and the exact amount the recipient will receive. After confirming details and authorizing payment, the sender receives a transaction confirmation. This confirmation often includes a unique tracking number (e.g., MTCN) important for monitoring progress.

Processing times can vary, from minutes to several business days. Cutoff times and public holidays can influence delivery speed. Senders can track their transfer status using the reference number via the service’s website or mobile app.

Notify the recipient of the impending transfer, providing expected arrival time and any necessary reference numbers or instructions. Retain all receipts, confirmation emails, and other transfer correspondence. This documentation serves as proof and is important for compliance or inquiries from financial institutions or regulatory bodies.