[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR575.202]

[Page 804-805]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 575--IRAQI SANCTIONS REGULATIONS--Table of Contents
 
                         Subpart B--Prohibitions
 
Sec. 575.202  Effect of transfers violating the provisions of this part.

    (a) Any transfer after the effective date, which is in violation of 
any provision of this part or of any regulation, ruling, instruction, 
license, or other direction or authorization hereunder and involves any 
property in which the Government of Iraq has or has had an interest 
since such date, is null and void and shall not be the basis for the 
assertion or recognition of any interest in or right, remedy, power or 
privilege with respect to such property.
    (b) No transfer before the effective date shall be the basis for the 
assertion or recognition of any right, remedy, power, or privilege with 
respect to, or interest in, any property in which the Government of Iraq 
has an interest, or has had an interest since such date, unless the 
person with whom such property is held or maintained, prior to such 
date, had written notice of the transfer or by any written evidence had 
recognized such transfer.
    (c) Unless otherwise provided, an appropriate license or other 
authorization issued by or pursuant to the direction or authorization of 
the Director of the Office of Foreign Assets Control before, during, or 
after a transfer shall validate such transfer or render it enforceable 
to the same extent that it would be valid or enforceable but for the 
provisions of the International Emergency Economic Powers Act, the 
United Nations Participation Act, this part, and any ruling, order, 
regulation, direction, or instruction issued hereunder.
    (d) Transfers of property which otherwise would be null and void or 
unenforceable by virtue of the provisions of this section shall not be 
deemed to be null and void or unenforceable as to any person with whom 
such property was held or maintained (and as to such person only) in 
cases in which such person is able to establish to the satisfaction of 
the Director of the Office of Foreign Assets Control each of the 
following:
    (1) Such transfer did not represent a willful violation of the 
provisions of this part by the person with whom such property was held 
or maintained;
    (2) The person with whom such property was held or maintained did 
not

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have reasonable cause to know or suspect, in view of all the facts and 
circumstances known or available to such person, that such transfer 
required a license or authorization by or pursuant to this part and was 
not so licensed or authorized, or if a license or authorization did 
purport to cover the transfer, that such license or authorization had 
been obtained by misrepresentation of a third party or the withholding 
of material facts or was otherwise fraudulently obtained; and
    (3) Promptly upon discovery that:
    (i) Such transfer was in violation of the provisions of this part or 
any regulation, ruling, instruction, license, or other direction or 
authorization hereunder, or
    (ii) Such transfer was not licensed or authorized by the Director of 
the Office of Foreign Assets Control, or
    (iii) If a license did purport to cover the transfer, such license 
had been obtained by misrepresentation of a third party or the 
withholding of material facts or was otherwise fraudulently obtained;

the person with whom such property was held or maintained filed with the 
Office of Foreign Assets Control a report setting forth in full the 
circumstances relating to such transfer. The filing of a report in 
accordance with the provisions of this paragraph shall not be deemed 
evidence that the terms of paragraphs (d) (1) and (2) of this section 
have been satisfied.
    (e) Unless licensed or authorized pursuant to this part, any 
attachment, judgment, decree, lien, execution, garnishment, or other 
judicial process is null and void with respect to any property in which, 
on or since the effective date, there existed an interest of the 
Government of Iraq.