[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: 31CFR597.201]



[Page 481-482]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 597_FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS--Table 

of Contents

 

                         Subpart B_Prohibitions

 

Sec. 597.201  Prohibited transactions involving blocked assets or 

funds of foreign terrorist organizations or their agents.





    (a) Upon notification to Congress of the Secretary of State's intent 

to designate an organization as a foreign terrorist organization 

pursuant to 8 U.S.C. 1189(a), until the publication in the Federal 

Register as described in paragraph (c) of this section, any U.S. 

financial institution receiving notice from the Secretary of the 

Treasury by means of order, directive, instruction, regulation, ruling, 

license, or otherwise shall, except as otherwise provided in such 

notice, block all financial transactions involving any assets of such 

organization within the possession or control of such U.S. financial 

institution until further directive from the



[[Page 482]]



Secretary of the Treasury, Act of Congress, or order of court.

    (b) Except as otherwise authorized by order, directive, instruction, 

regulation, ruling, license, or otherwise, from and after the 

designation of an organization as a foreign terrorist organization 

pursuant to 8 U.S.C. 1189(a), any U.S. financial institution that 

becomes aware that it has possession of or control over any funds in 

which the designated foreign terrorist organization or its agent has an 

interest shall:

    (1) Retain possession of or maintain control over such funds; and

    (2) Report to the Secretary of the Treasury the existence of such 

funds in accordance with Sec. 501.603 of this chapter.

    (c) Publication in the Federal Register of the designation of an 

organization as a foreign terrorist organization pursuant to 8 U.S.C. 

1189(a) shall be deemed to constitute a further directive from the 

Secretary of the Treasury for purposes of paragraph (a) of this section, 

and shall require the actions contained in paragraph (b) of this 

section.

    (d) The requirements of paragraph (b) of this section shall remain 

in effect until the effective date of an administrative, judicial, or 

legislative revocation of the designation of an organization as a 

foreign terrorist organization, or until the designation lapses, 

pursuant to 8 U.S.C. 1189.

    (e) 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 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. Requests for the unblocking of funds pursuant to Sec. 501.806 

must be submitted to the attention of the Compliance Programs Division.