Does 31 CFR § 560.540 of the Iranian Transactions and Sanctions Regulations (ITSR) authorize the provision of fee-based cloud computing services to Iran?

OFAC's answer

Yes. Section [560.540(a)(1)](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-560) of the ITSR authorizes the provision to Iran of fee-based cloud computing services that support the exchange of communications over the internet. In addition, paragraph (a)(2)(i) of 31 CFR § 560.540 authorizes the provision to Iran of software that is incident to, or enables services incident to, the exchange of communications over the internet, and paragraph (a)(3) authorizes the provision to Iran of software described in the 31 CFR § 560.540 List of Services, Software, and Hardware Incident to Communications and services necessary for the operation of such software, in both cases provided that such software is designated EAR99 or classified by the U.S. Department of Commerce on the CCL under ECCN 5D992.c or, in the case of software that is not subject to the [EAR](https://www.ecfr.gov/current/title-15/subtitle-B/chapter-VII/subchapter-C), would be designated EAR99 if it were located in the United States or would meet the criteria for classification under ECCN 5D992.c if it were subject to the EAR. Please see FAQs [1087–1089](https://ofac.treasury.gov/faqs/search/1087+1088+1089) for additional guidance. Date Updated: May 16, 2024