[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: 31CFR538.202]



[Page 183-184]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 538_SUDANESE SANCTIONS REGULATIONS--Table of Contents

 

                         Subpart B_Prohibitions

 

Sec. 538.202  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, order, directive, 

ruling, instruction, license, or other authorization hereunder and 

involves any property or interest in property blocked pursuant to Sec. 

538.201 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 or property interests.

    (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 or interest in property blocked 

pursuant to Sec. 538.201, 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, this 

part, and any regulation, order, directive, ruling, instruction, or 

license 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



[[Page 184]]



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 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) 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 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.



    Note to paragraph (d): The filing of a report in accordance with the 

provisions of paragraph (d)(3) of this section 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 or 

interest in property blocked pursuant to Sec. 538.201.