Federal Register, Volume 75, Number 22, February 3, 2010, Pages 5481-5674 Page: 5,508
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Federal Register/Vol. 75, No. 22/Wednesday, February 3, 2010 /Rules and Regulations
pursuant to 548.201(a), to complete a
securities sale also authorizes all
activities by other parties required to
complete the sale, including
transactions by the buyer, broker,
transfer agents, banks, etc., provided
that such other parties are not
themselves persons whose property and
interests in property are blocked
pursuant to 548.201(a).
548.405 Provision of services.
(a) Except as provided in 548.206,
the prohibitions on transactions
involving blocked property contained in
548.201 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 and interests
in property are blocked pursuant to
548.201(a); or
(2) With respect to property interests
subject to 548.201.
(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 and
interests in property are blocked
pursuant to 548.201(a).
Note to 548.405: See 548.507 and
548.508 on licensing policy with regard to
the provision of certain legal and medical
services.
548.406 Offshore transactions.
The prohibitions in 548.201 on
transactions or dealings involving
blocked property apply to transactions
by any U.S. person in a location outside
the United States with respect to
property held in the name of a person
whose property and interests in
property are blocked pursuant to
548.201(a), or property in which a
person whose property and interests in
property are blocked pursuant to
548.201(a) has or has had an interest
since the effective date.
548.407 Payments from blocked
accounts to satisfy obligations prohibited.
Pursuant to 548.201, no debits may
be made to a blocked account to pay
obligations to U.S. persons or other
persons, except as authorized by or
pursuant to this part.
548.408 Charitable contributions.
Unless specifically authorized by the
Office of Foreign Assets Control
pursuant to this part, no charitable
contribution of funds, goods, services,
or technology, including contributionsto relieve human suffering, such as food,
clothing or medicine, may be made by,
to, or for the benefit of, or received from,
a person whose property and interests
in property are blocked pursuant to
548.201(a). For the purposes of this
part, a contribution is made by, to, or for
the benefit of, or received from, a person
whose property and interests in
property are blocked pursuant to
548.201(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 by, to, or for the benefit of
such a person, or the receipt of
contributions from any such person.
548.409 Credit extended and cards
issued by U.S. financial institutions.
The prohibition in 548.201 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 and interests in
property are blocked pursuant to
548.201(a).
548.410 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 548.201 if
effected after the effective date.
548.411 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 548.201(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
548.201(a), regardless of whether the
entity itself is listed in the Annex to
Executive Order 13405 or designated
pursuant to 548.201(a).
Subpart E-Licenses, Authorizations,
and Statements of Licensing Policy
548.501 General and specific licensing
procedures.
For provisions relating to licensing
procedures, see part 501, subpart E ofthis chapter. Licensing actions taken
pursuant to part 501 of this chapter with
respect to the prohibitions contained in
this part are considered actions taken
pursuant to this part.
548.502 Effect of license or
authorization.
(a) No license or other authorization
contained in this part, or otherwise
issued by the Office of Foreign Assets
Control, authorizes or validates any
transaction effected prior to the issuance
of such license or other authorization,
unless specifically provided in such
license or authorization.
(b) No regulation, ruling, instruction,
or license authorizes any transaction
prohibited under this part unless the
regulation, ruling, instruction, or license
is issued by the Office of Foreign Assets
Control and specifically refers to this
part. No regulation, ruling, instruction,
or license referring to this part shall be
deemed to authorize any transaction
prohibited by any other part of this
chapter unless the regulation, ruling,
instruction, or license specifically refers
to such part.
(c) Any regulation, ruling, instruction,
or license authorizing any transaction
otherwise prohibited under this part has
the effect of removing a prohibition
contained in this part from the
transaction, but only to the extent
specifically stated by its terms. Unless
the regulation, ruling, instruction, or
license otherwise specifies, such an
authorization does not create any right,
duty, obligation, claim, or interest in, or
with respect to, any property which
would not otherwise exist under
ordinary principles of law.
548.503 Exclusion from licenses.
The Office of Foreign Assets Control
reserves the right to exclude any person,
property, or transaction from the
operation of any license or from the
privileges conferred by any license. The
Office of Foreign Assets Control also
reserves the right to restrict the
applicability of any license to particular
persons, property, transactions, or
classes thereof. Such actions are binding
upon actual or constructive notice of the
exclusions or restrictions.
548.504 Payments and transfers to
blocked accounts in U.S. financial
institutions.
Any payment of funds or transfer of
credit in which a person whose property
and interests in property are blocked
pursuant to 548.201(a) has any interest
that comes within the possession or
control of a U.S. financial institution
must be blocked in an account on the
books of that financial institution. A
transfer of funds or credit by a U.S.financial institution between blocked
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United States. Office of the Federal Register. Federal Register, Volume 75, Number 22, February 3, 2010, Pages 5481-5674, periodical, February 3, 2010; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc52605/m1/34/: accessed May 5, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.