[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: 31CFR595.203]



[Page 467]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 595_TERRORISM SANCTIONS REGULATIONS--Table of Contents

 

                         Subpart B_Prohibitions

 

Sec. 595.203  Holding of certain types of blocked property in 

interest-bearing accounts.



    (a)(1) Any person, including a U.S. financial institution, currently 

holding property subject to Sec. 595.201 which, as of the effective 

date or the date of receipt if subsequent to the effective date, is not 

being held in an interest-bearing account, or otherwise invested in a 

manner authorized by the Office of Foreign Assets Control, shall 

transfer such property to, or hold such property or cause such property 

to be held in, an interest-bearing account or interest-bearing status in 

a U.S. financial institution as of the effective date or the date of 

receipt if subsequent to the effective date of this section, unless 

otherwise authorized or directed by the Office of Foreign Assets 

Control.

    (2) The requirement set forth in paragraph (a)(1) of this section 

shall apply to currency, bank deposits, accounts, obligations, and any 

other financial or economic resources or assets, and any proceeds 

resulting from the sale of tangible or intangible property. If interest 

is credited to an account separate from that in which the interest-

bearing asset is held, the name of the account party on both accounts 

must be the same and must clearly indicate the specially designated 

terrorist having an interest in the accounts. If the account is held in 

the name of a specially designated terrorist, the name of the account to 

which interest is credited must be the same.

    (b) For purposes of this section, the term interest-bearing account 

means a blocked account in a U.S. financial institution earning interest 

at rates that are commercially reasonable for the amount of funds in the 

account. Except as otherwise authorized, the funds may not be invested 

or held in instruments the maturity of which exceeds 90 days.

    (c) This section does not apply to blocked tangible property, such 

as chattels, nor does it create an affirmative obligation on the part of 

the holder of such blocked tangible property to sell or liquidate the 

property and put the proceeds in a blocked account. However, the Office 

of Foreign Assets Control may issue licenses permitting or directing 

sales of tangible property in appropriate cases.