31 C.F.R. Subpart D—Interpretations
Title 31 - Money and Finance: Treasury
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. 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. (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 §588.201(a), unless there exists in the property another interest that is blocked pursuant to §588.201(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 §588.201(a), such property shall be deemed to be property in which that person has an interest and therefore blocked. 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 §588.201(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. (a) Except as provided in §588.206, the prohibitions on transactions involving blocked property contained in §588.201 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 §588.201(a); or (2) With respect to property interests subject to §588.201. (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, or other services to a person whose property or interests in property are blocked pursuant to §588.201(a). Note to §588.405: See §§588.507 and 588.508, respectively, on licensing policy with regard to the provision of certain legal or medical services.
Title 31: Money and Finance: Treasury
PART 588—WESTERN BALKANS STABILIZATION REGULATIONS
Subpart D—Interpretations
§ 588.401 Reference to amended sections.
§ 588.402 Effect of amendment.
§ 588.403 Termination and acquisition of an interest in blocked property.
§ 588.404 Transactions incidental to a licensed transaction.
§ 588.405 Provision of services.
§ 588.406 Offshore transactions.
The prohibitions in §588.201 on transactions involving blocked property apply to transactions 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 §588.201(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 §588.201(a) has or has had an interest since the effective date.
§ 588.407 Payments from blocked accounts to satisfy obligations prohibited.
Pursuant to §588.201, 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.
§ 588.408 Charitable contributions.
Unless otherwise specifically authorized by the Office of Foreign Assets Control by or pursuant to this part, no charitable contribution or donation of funds, goods, services, or technology may be made to or for the benefit of a person whose property or interests in property are blocked pursuant to §588.201(a). For purposes of this part, a contribution or donation is made to or for the benefit of a person whose property or interests in property are blocked pursuant to §588.201(a) if made to or in the name of such a person; if made to 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 to such a person.
§ 588.409 Credit extended and cards issued by U.S. financial institutions.
The prohibition in §588.201 on dealing in property subject to that section 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 §588.201(a).
§ 588.410 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 §588.201 if effected after the effective date.
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