[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: 31CFR585.203]

[Page 833-834]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
     PART 585--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) AND BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND HERZEGOVINA SANCTIONS 
REGULATIONS--Table of Contents
 
                         Subpart B--Prohibitions
 
Sec. 585.203  Holding of certain types of blocked property in interest-bearing accounts.

    (a)(1) Any person, including a U.S. financial institution, currently 
holding property subject to Sec. 585.201, which, as of July 15, 1992, or 
the date of receipt if subsequent to July 15, 1992, is not being held in 
an interest-bearing account or otherwise invested in a manner authorized 
by the Office of Foreign Assets Control, shall transfer such property 
to, or hold such property or cause such property to be held in, an 
interest-bearing account or interest-bearing status in a U.S. financial 
institution as of July 15, 1992, or the date of receipt if subsequent to 
July 15, 1992, unless otherwise authorized or directed by the Office of 
Foreign Assets Control.

[[Page 834]]

    (2) The requirement set forth in paragraph (a)(1) of this section 
shall apply to currency, bank deposits, accounts, obligations, and any 
other financial or economic resources or assets, and any proceeds 
resulting from the sale of tangible or intangible property. If interest 
is credited to an account separate from that in which the interest-
bearing asset is held, the name of the account party on both accounts 
must be the same and must clearly indicate the person(s) having an 
interest in the accounts. If the account is held in the name of the 
Government of the Federal Republic of Yugoslavia or the former 
Government of the Socialist Federal Republic of Yugoslavia, the name of 
the account to which interest is credited must be the same.
    (b) For purposes of this section, the term ``interest-bearing 
account'' means a blocked account in a U.S. financial institution 
earning interest at rates that are commercially reasonable for the 
amount of funds in the account, i.e., a rate similar to that currently 
offered other depositors on deposits of comparable size and maturity. 
Overnight investment of blocked funds is authorized, provided that the 
funds remain within the possession and control of the U.S. person 
holding the funds and that the funds remain in a blocked status at all 
times. Except as otherwise authorized, the funds may not be re-invested 
or held in instruments the maturity of which exceeds 90 days.
    (c) U.S. financial institutions receiving instructions to execute a 
payment or transfer of funds they hold in which a person has an interest 
whose property or interests in property are blocked pursuant to 
Sec. 585.201, shall block the funds and provide written notification to 
the Compliance Programs Division, Office of Foreign Assets Control, U.S. 
Treasury Department, 1500 Pennsylvania Ave., NW.-2131 Annex, Washington, 
DC 20220, within 10 business days from the value date of the payment or 
transfer. The notification shall include a photocopy of the payment or 
transfer instructions received, shall confirm that the payment or 
transfer has been deposited into an existing or newly-established 
blocked account, and shall provide the account number, the name of the 
account, the location of the account, the name and address of the 
transferor and transferee financial instructions, the date of the 
deposit and the amount of the payment or transfer.
    (d) This section does not apply to blocked tangible property, such 
as chattels, nor does it create an affirmative obligation on the part of 
the holder of such blocked tangible property to sell or liquidate the 
property and put the proceeds in a blocked account. However, the Office 
of Foreign Assets Control may issue licenses permitting or directing 
sales of tangible property in appropriate cases.

[58 FR 13201, Mar. 10, 1993, as amended at 60 FR 34145, June 30, 1995]