[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: 31CFR595.504]



[Page 472-473]

 

                  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 E_Licenses, Authorizations, and Statements of Licensing Policy

 

Sec. 595.504  Investment and reinvestment of certain funds.



    (a) U.S. financial institutions are hereby authorized and directed 

to invest and reinvest assets held in blocked accounts in the name of a 

specially designated terrorist, subject to the following conditions:



[[Page 473]]



    (1) The assets representing such investments and reinvestments are 

credited to a blocked account or sub-account which is in the name of the 

specially designated terrorist and which is located in the United States 

or within the possession or control of a U.S. person; and

    (2) The proceeds of such investments and reinvestments are not 

credited to a blocked account or sub-account under any name or 

designation which differs from the name or designation of the specific 

blocked account or sub-account in which such funds or securities were 

held; and

    (3) No immediate financial or economic benefit or access accrues 

(e.g., through pledging or other use) to the specially designated 

terrorist.

    (b)(1) U.S. persons seeking to avail themselves of this 

authorization must register with the Office of Foreign Assets Control, 

Blocked Assets Section, before undertaking transactions authorized under 

this section.

    (2) Transactions conducted pursuant to this section must be reported 

to the Office of Foreign Assets Control, Blocked Assets Division, in a 

report filed no later than 10 business days following the last business 

day of the month in which the transactions occurred.