[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: 31CFR542.201]



[Page 239-240]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 542_SYRIAN SANCTIONS REGULATIONS--Table of Contents

 

                         Subpart B_Prohibitions

 

Sec. 542.201  Prohibited transactions involving blocked property.





    (a) Except as authorized by regulations, orders, directives, 

rulings, instructions, licenses or otherwise, and notwithstanding any 

contracts entered into or any license or permit granted prior to the 

effective date, all property and interests in property of the following 

persons that are in the United States, that hereafter come within the 

United States, or that are or hereafter come within the possession or 

control of United States persons, including their overseas branches, are 

blocked and may not be transferred, paid, exported, withdrawn, or 

otherwise dealt in:

    (1) [Reserved]

    (2) Any person determined by the Secretary of the Treasury, in 

consultation with the Secretary of State:

    (i) To be or to have been directing or otherwise significantly 

contributing to the Government of Syria's provision of safe haven to or 

other support for any person whose property or interests in property are 

blocked under United States law for terrorism-related reasons, 

including, but not limited to, Hamas, Hizballah, Palestinian Islamic 

Jihad, the Popular Front for the Liberation of Palestine, the Popular 

Front for the Liberation of Palestine-General Command, and any persons 

designated pursuant to Executive Order 13224 of September 23, 2001;

    (ii) To be or to have been directing or otherwise significantly 

contributing to the Government of Syria's military or security presence 

in Lebanon;

    (iii) To be or to have been directing or otherwise significantly 

contributing to the Government of Syria's pursuit of the development and 

production of chemical, biological, or nuclear weapons and medium- and 

long-range surface-to-surface missiles;

    (iv) To be or to have been directing or otherwise significantly 

contributing to any steps taken by the Government of Syria to 

undermineUnited States and international efforts with respect to the 

stabilization and reconstruction of Iraq; or

    (v) To be owned or controlled by, or acting or purporting to act for 

or on behalf of, directly or indirectly, any person whose property or 

interests in property are blocked pursuant to this section.



    Note to paragraph (a) of Sec. 542.201: The names of persons whose 

property or interests in property are blocked pursuant to



[[Page 240]]



Sec. 542.201(a) will be published on OFAC's Web site, announced in the 

Federal Register, and incorporated on an ongoing basis with the 

identifier [SYRIA] in appendix A to 31 CFR chapter V. Section 501.807 of 

this chapter V sets forth the procedures to be followed by persons 

seeking administrative reconsideration of their designations pursuant to 

Sec. 542.201(a) or who wish to assert that the circumstances resulting 

in a designation no longer apply. Similarly, when a transaction results 

in the blocking of funds at a financial institution pursuant to this 

section and a party to the transaction believes the funds to have been 

blocked due to mistaken identity, that party may seek to have such funds 

unblocked pursuant to the administrative procedures set forth in Sec. 

501.806 of this chapter.

    Section 203 of the International Emergency Economic Powers Act (50 

U.S.C. 1702) explicitly authorizes the blocking of property and 

interests in property of a person during the pendency of an 

investigation. The name of any individual or entity whose property or 

interests in property are blocked under this part pending investigation 

will be published as noted above with the descriptor ``[BPI-SYRIA].'' 

The scope of the blocking of property or interests in property during 

the pendency of an investigation may be more limited than the scope of 

the blocking set forth in Sec. 542.201(a). Inquiries regarding the scope 

of any such blocking should be directed to OFAC's Compliance Division at 

202/622-2490.



    (b) The blocking of property and interests in property pursuant to 

Sec. 542.201(a) includes, but is not limited to, the prohibition of:

    (1) The making of any contribution of funds, goods, or services by, 

to, or for the benefit of any person whose property or interests in 

property are blocked pursuant to this section; and

    (2) The receipt of any contribution or provision of funds, goods, or 

services from any such person.

    (c) Unless otherwise authorized by this part or by a specific 

license expressly referring to this section, any dealing in any security 

(or evidence thereof) held within the possession or control of a U.S. 

person and either registered or inscribed in the name of or known to be 

held for the benefit of any person whose property or interests in 

property are blocked pursuant to Sec. 542.201(a) is prohibited. This 

prohibition includes but is not limited to the transfer (including the 

transfer on the books of any issuer or agent thereof), disposition, 

transportation, importation, exportation, or withdrawal of any such 

security or the endorsement or guaranty of signatures on any such 

security. This prohibition applies irrespective of the fact that at any 

time (whether prior to, on, or subsequent to the effective date) the 

registered or inscribed owner of any such security may have or might 

appear to have assigned, transferred, or otherwise disposed of the 

security.