[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: 31CFR588.201]



[Page 406-407]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 588_WESTERN BALKANS STABILIZATION REGULATIONS--Table of Contents

 

                         Subpart B_Prohibitions

 

Sec. 588.201  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, property or 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 U.S. persons, including their overseas branches, are blocked 

and may not be transferred, paid, exported, withdrawn or otherwise dealt 

in:

    (1) Any person listed in the Annex to Executive Order 13219 of June 

26, 2001 (3 CFR, 2001 Comp., p. 778); and

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

consultation with the Secretary of State, because they are found:



[[Page 407]]



    (i) To have committed, or to pose a significant risk of committing, 

acts of violence that have the purpose or effect of threatening the 

peace in or diminishing the stability or security of any area or state 

in the Western Balkans region, undermining the authority, efforts, or 

objectives of international organizations or entities present in the 

region, or endangering the safety of persons participating in or 

providing support to the activities of those international organizations 

or entities; or

    (ii) To have actively obstructed, or to pose a significant risk of 

actively obstructing, implementation of the Dayton Accords in Bosnia or 

United Nations Security Council Resolution 1244 of June 10, 1999, in 

Kosovo; or

    (iii) Materially to assist in, sponsor, or provide financial support 

for, or goods or services in support of, such acts of violence and 

obstructionism; or

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

directly or indirectly for or on behalf of, any person designated in the 

Annex to Executive Order 13219 or any person otherwise designated by the 

Secretary of the Treasury pursuant to this section.



    Note to paragraph (a) of Sec. 588.201: The names of persons whose 

property or interests in property are blocked pursuant to paragraph (a) 

of this section will be published on OFAC's website, announced in the 

Federal Register and incorporated on an ongoing basis with the 

identifier [BALKANS] into 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 designation 

pursuant to paragraph (a)(2) of this section or who wish to assert that 

the circumstances resulting in 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.



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

paragraph (a) of this section includes, but is not limited to, the 

prohibition of the making or receiving by a United States person of any 

contribution or provision of funds, goods or services to or for the 

benefit of a person whose property or interests in property are blocked 

pursuant to paragraph (a) of this section.

    (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 paragraph (a) of this section 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.