[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR501.604]



[Page 51]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY

 

PART 501_REPORTING, PROCEDURES AND PENALTIES REGULATIONS--Table of 

Contents

 

                            Subpart C_Reports

 

Sec. 501.604  Reports by U.S. financial institutions on rejected funds 

transfers.



    (a) Who must report. Any financial institution that rejects a funds 

transfer where the funds are not blocked under the provisions of this 

chapter, but where processing the transfer would nonetheless violate, or 

facilitate an underlying transaction that is prohibited under, other 

provisions contained in this chapter, must report. For purposes of this 

section, the term ``financial institution'' shall include a banking 

institution, depository institution or United States depository 

institution, domestic bank, financial institution or U.S. financial 

institution, as those terms are defined in the applicable part of this 

chapter.

    (b) Rejected transfers. Examples of transactions involving rejected 

funds transfers include funds transfer instructions:

    (1) Referencing a blocked vessel but where none of the parties or 

financial institutions involved in the transaction is a blocked person;

    (2) Sending funds to a person in Iraq;

    (3) Transferring unlicensed gifts or charitable donations from the 

Government of Syria to a U.S. person;

    (4) Crediting Iranian accounts on the books of a U.S. financial 

institution; and

    (5) Making unauthorized transfers from U.S. persons to Iran or the 

Government of Iran.

    (c) When reports are due. Reports are required to be filed within 10 

business days by any financial institution rejecting instructions to 

execute payments or transfers involving underlying transactions 

prohibited by the provisions of this chapter.

    (d) What must be reported. The report shall include the name and 

address of the transferee financial institution, the date of the 

transfer, the amount of the payment transfer, and a photocopy of the 

payment or transfer instructions received, and shall state the basis for 

the rejection of the transfer instructions. The report shall also 

provide the name and telephone number of a contact person at the 

transferee financial institution from whom compliance information may be 

obtained.

    (e) Where to report. Reports must be filed with the Office of 

Foreign Assets Control, Compliance Programs Division, U.S. Treasury 

Department, 1500 Pennsylvania Avenue NW.--Annex, Washington, DC 20220.



[62 FR 45101, Aug. 25, 1997, as amended 70 FR 34061, June 13, 2005]