[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: 31CFR586.409]



[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. 586.409  Approval or other facilitation of other persons' 

investment in the territory of the Republic of Serbia.



    (a) The prohibition contained in Sec. 586.204 against approval or 

other facilitation by U.S. persons of other persons' investment in the 

territory of the Republic of Serbia bars any action by a U.S. person 

that assists or supports other persons' activity that would constitute 

prohibited new investment under that section if engaged in by a U.S. 

person. Such approval or other facilitation with respect to persons 

whose property or interests in property are blocked pursuant to Sec. 

586.201 also constitutes a violation of that section. See the definition 

of the term new investment in Sec. 586.312.

    (b) Examples: (1) A U.S. person is prohibited from brokering, 

financing, guaranteeing, or approving the purchase by any other person, 

including a foreign affiliate, of shares, including an equity interest, 

in a publicly or privately held undertaking, entity or project located 

in the territory of the Republic of Serbia, except as provided in Sec. 

586.514.

    (2) The sale to a non-U.S. person of a U.S. person's equity or 

income interest in an entity in the territory of the Republic of Serbia 

constitutes facilitation of that other person's investment in Serbia, 

and would otherwise be prohibited but for the authorization contained in 

Sec. 586.514.

    (3) A U.S. national or permanent resident alien employed by a 

foreign person may not participate in any decision-making role in an 

activity by the foreign person that includes investment in the territory 

of the Republic of Serbia.



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