[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: 31CFR586.408]



[Page 383]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 586_FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA & MONTENEGRO) KOSOVO 

SANCTIONS REGULATIONS--Table of Contents

 

                        Subpart D_Interpretations

 

Sec. 586.408  Exempt financial transactions within the territory of 

the FRY (S&M); prohibition on establishment of new offices in Serbia.



    (a) Section 586.201(c) exempts financial transactions, including 

trade financing, from the prohibitions contained in Sec. 586.201 by 

U.S. persons physically located within the territory of the FRY (S&M), 

where those transactions are conducted exclusively through the domestic 

banking system within the FRY (S&M) in local currency (dinars), or using 

bank notes or barter. A U.S. entity must have a permanent establishment, 

such as a branch or representative office, within the territory of the 

FRY (S&M) to be considered physically located there for purposes of this 

paragraph (a).

    (b) The prohibition on new investment within Serbia contained in 

Sec. 586.204, as defined in Sec. 586.312, precludes the establishment 

after the effective date of a new representative or branch office or 

joint venture or other entity within the territory of the Republic of 

Serbia, because such activity would necessarily involve a commitment or 

contribution of funds or other assets to a public or private 

undertaking, entity, or project within Serbia. See Sec. 586.513 

concerning the authorization of certain trade-related transactions 

conducted using bank notes or barter by U.S. persons located outside of 

the territory of the FRY (S&M).



    Note to Sec. 586.408: All transactions with respect to property in 

which the Government of the Republic of Montenegro has an interest are 

authorized pursuant to Sec. 586.516. Therefore, all financial 

transactions by U.S. persons within the territory of the Republic of 

Montenegro are authorized, unless the transaction involves property in 

which another interest exists that is blocked pursuant to Sec. 586.201 

or any other part of this chapter. See Sec. 586.403.