U-turn transactions

Refers to a way for U.S. dollar transactions to take place where the customer or the seller is facing U.S. sanctions. For example, before November 2008, the U.S. Department of Treasury's Office of Foreign Asset Controls allowed some transactions with Iran (in non-prohibited goods) as long the transfer was initiated by a non-Iranian bank and passed through the U.S. system (the U-turn) on the way to another non-Iranian bank. The U-turn practice was terminated on November 10, 2008 with amendments to the Iranian Transactions Regulations, 31 CFR Part 560.