[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: 31CFR540.503]



[Page 221-222]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 540_HIGHLY ENRICHED URANIUM (HEU) AGREEMENT ASSETS CONTROL 

REGULATIONS--Table of Contents

 

 Subpart E_Licenses, Authorizations, and Statements of Licensing Policy

 

Sec. 540.503  Payments and transfers to blocked accounts in U.S. 

financial institutions.



    Except as otherwise authorized, licensed or directed by the Office 

of Foreign Assets Control, any payment of funds or transfer of credit in 

which the Government of the Russian Federation has any interest that is 

directly related to the implementation of the HEU Agreements and that 

comes within the possession or control of a U.S. financial institution 

must be blocked in an account on the books of that financial 

institution. A transfer of funds or credit by a U.S. financial 

institution between blocked accounts in its branches or offices is 

authorized, provided that no transfer is made from an account within the 

United States to an account held outside the United States, and further 

provided that a transfer



[[Page 222]]



from a blocked account may only be made to another blocked account held 

in the same name. U.S. financial institutions are authorized to engage 

in routine currency exchange transfers involving funds directly 

associated with the implementation of the HEU agreements that flow 

through correspondence accounts in U.S. financial institutions.



    Note to Sec. 540.503. Please refer to Sec. 501.603 of this chapter 

for mandatory reporting requirements regarding financial transfers. See 

also Sec. 501.203 concerning the obligation to hold blocked funds in 

interest-bearing accounts.