[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR536.203]

[Page 675-676]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 536_NARCOTICS TRAFFICKING SANCTIONS REGULATIONS--Table of Contents
 
                         Subpart B_Prohibitions
 
Sec. 536.203  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. 536.201 which, as of the effective 
date or the date of receipt if subsequent to the effective date, is not 
being held in an interest-bearing account, or otherwise invested in a

[[Page 676]]

manner authorized by the Office of Foreign Assets Control (e.g., Sec. 
536.504), 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 the 
effective date or the date of receipt if subsequent to the effective 
date of this section, unless otherwise authorized or directed by the 
Office of Foreign Assets Control.
    (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 specially designated 
narcotics trafficker having an interest in the accounts. If the account 
is held in the name of a specially designated narcotics trafficker, 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. Except as otherwise authorized, the funds may not be invested 
or held in instruments the maturity of which exceeds 90 days.
    (c) 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.