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Electronic Code of Federal Regulations

e-CFR data is current as of November 12, 2019

Title 31Subtitle BChapter VPart 594 → Subpart D


Title 31: Money and Finance: Treasury
PART 594—GLOBAL TERRORISM SANCTIONS REGULATIONS


Subpart D—Interpretations


Contents
§594.401   Reference to amended sections.
§594.402   Effect of amendment.
§594.403   Setoffs prohibited.
§594.404   Termination and acquisition of an interest in blocked property.
§594.405   Transactions incidental to a licensed transaction.
§594.406   Provision of services.
§594.407   Offshore transactions.
§594.408   Payments from blocked accounts to satisfy obligations prohibited.
§594.409   Charitable contributions.
§594.410   Credit extended and cards issued by U.S. financial institutions.
§594.411   Palestinian Authority.
§594.412   Entities owned by a person whose property and interests in property are blocked.

§594.401   Reference to amended sections.

Except as otherwise specified, reference to any provision in or appendix to this part or chapter or to any regulation, ruling, order, instruction, direction, or license issued pursuant to this part refers to the same as currently amended.

§594.402   Effect of amendment.

Unless otherwise specifically provided, any amendment, modification, or revocation of any provision in or appendix to this part or chapter or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Director of the Office of Foreign Assets Control does not affect any act done or omitted, or any civil or criminal suit or proceeding commenced or pending prior to such amendment, modification, or revocation. All penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction, or license continue and may be enforced as if such amendment, modification, or revocation had not been made.

§594.403   Setoffs prohibited.

A setoff against blocked property (including a blocked account), whether by a U.S. bank or other U.S. person, is a prohibited transfer under §§594.201 and 594.204 if effected after the effective date.

§594.404   Termination and acquisition of an interest in blocked property.

(a) Whenever a transaction licensed or authorized by or pursuant to this part results in the transfer of property (including any property interest) away from a person, such property shall no longer be deemed to be property blocked pursuant to §594.201(a), unless there exists in the property another interest that is blocked pursuant to §594.201(a) or any other part of this chapter, the transfer of which has not been effected pursuant to license or other authorization.

(b) Unless otherwise specifically provided in a license or authorization issued pursuant to this part, if property (including any property interest) is transferred or attempted to be transferred to a person whose property or interests in property are blocked pursuant to §594.201(a), such property shall be deemed to be property in which that person has an interest and therefore blocked.

§594.405   Transactions incidental to a licensed transaction.

Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except:

(a) An incidental transaction, not explicitly authorized within the terms of the license, by or with a person whose property or interests in property are blocked pursuant to §594.201(a); or

(b) An incidental transaction, not explicitly authorized within the terms of the license, involving a debit to a blocked account or a transfer of blocked property.

§594.406   Provision of services.

(a) Except as provided in §594.207, the prohibitions on transactions or dealings involving blocked property contained in §§594.201 and 594.204 apply to services performed in the United States or by U.S. persons, wherever located, including by an overseas branch of an entity located in the United States:

(1) On behalf of or for the benefit of a person whose property or interests in property are blocked pursuant to §594.201(a); or

(2) With respect to property interests subject to §§594.201 and 594.204.

(b) Example: U.S. persons may not, except as authorized by or pursuant to this part, provide legal, accounting, financial, brokering, freight forwarding, transportation, public relations, educational, or other services to a person whose property or interests in property are blocked pursuant to §594.201(a).

Note to §594.406: See §§594.506 and 594.507, respectively, on licensing policy with regard to the provision of certain legal or medical services.

§594.407   Offshore transactions.

The prohibitions in §§594.201 and 594.204 on transactions or dealings involving blocked property apply to transactions or dealings by any U.S. person in a location outside the United States with respect to property that the U.S. person knows, or has reason to know, is held in the name of a person whose property or interests in property are blocked pursuant to §594.201(a) or in which the U.S. person knows, or has reason to know, a person whose property or interests in property are blocked pursuant to §594.201(a) has or has had an interest since the effective date.

§594.408   Payments from blocked accounts to satisfy obligations prohibited.

Pursuant to §§594.201 and 594.204, no debits may be made to a blocked account to pay obligations to U.S. persons or other persons, except as authorized pursuant to this part.

§594.409   Charitable contributions.

Unless specifically authorized by the Office of Foreign Assets Control pursuant to this part, no charitable contribution or donation of funds, goods, services, or technology, including contributions or donations to relieve human suffering, such as food, clothing, or medicine, may be made by, to, or for the benefit of, or received from, any person whose property and interests in property are blocked pursuant to §594.201(a). For the purposes of this part, a contribution or donation is made by, to, or for the benefit of, or received from, any person whose property and interests in property are blocked pursuant to §594.201(a) if made by, to, or in the name of, or received from or in the name of, such a person; if made by, to, or in the name of, or received from or in the name of, an entity or individual acting for or on behalf of, or owned or controlled by, such a person; or if made in an attempt to violate, to evade, or to avoid the bar on the provision of contributions or donations by, to, or for the benefit of such a person, or the receipt of contributions or donations from any such person.

[78 FR 38575, June 27, 2013]

§594.410   Credit extended and cards issued by U.S. financial institutions.

The prohibitions in §§594.201 and 594.204 on engaging in transactions or dealings in property subject to those sections prohibits U.S. financial institutions from performing under any existing credit agreements, including, but not limited to, charge cards, debit cards, or other credit facilities issued by a U.S. financial institution to a person whose property or interests in property are blocked pursuant to §594.201(a).

§594.411   Palestinian Authority.

Following the January 2006 Palestinian elections, Hamas, a designated terrorist entity whose property and interests in property are blocked pursuant to §594.201, has been determined to have a property interest in the transactions of the Palestinian Authority. Accordingly, pursuant to §§594.201 and 594.204, U.S. persons are prohibited from engaging in transactions with the Palestinian Authority unless authorized. Certain transactions with the Palestinian Authority may be authorized by license, see subpart E of this part.

[71 FR 27200, May 10, 2006]

§594.412   Entities owned by a person whose property and interests in property are blocked.

A person whose property and interests in property are blocked pursuant to §594.201(a) has an interest in all property and interests in property of an entity in which it owns, directly or indirectly, a 50 percent or greater interest. The property and interests in property of such an entity, therefore, are blocked, and such an entity is a person whose property and interests in property are blocked pursuant to §594.201(a), regardless of whether the entity itself is listed in the Annex to Executive Order 13224, as amended, or designated pursuant to §594.201(a).

[78 FR 38575, June 27, 2013]

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