[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: 31CFR598.205]



[Page 493-494]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 598_FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS--Table of 

Contents

 

                         Subpart B_Prohibitions

 

Sec. 598.205  Effect of transfers violating the provisions of this part.



    (a) Any transfer after the effective date that is in violation of 

any provision of this part or of any regulation, order, directive, 

ruling, instruction, or license issued pursuant to this part, and that 

involves any property or interest in property of a specially designated 

narcotics trafficker is null and void and shall not be the basis for the 

assertion or recognition of any interest in or right, remedy, power, or 

privilege with respect to such property or property interests.

    (b) No transfer before the effective date shall be the basis for the 

assertion or recognition of any right, remedy, power, or privilege with 

respect to, or any interest in, any property or interest in property of 

a specially designated narcotics trafficker, unless the person with whom 

such property is held or maintained, prior to that date, had written 

notice of the transfer or by any written evidence had recognized such 

transfer.

    (c) Unless otherwise provided, an appropriate license or other 

authorization issued by or pursuant to the direction or authorization of 

the Director of the Office of Foreign Assets Control before, during, or 

after a transfer shall validate such transfer or make it enforceable to 

the same extent that it would be valid or enforceable but for the 

provisions of the Foreign Narcotics Kingpin Designation Act, this part, 

and any regulation, order, directive, ruling, instruction, or license 

issued pursuant to this part.

    (d) Property transfers that otherwise would be null and void or 

unenforceable by virtue of the provisions of this section shall not be 

deemed to be null and void or unenforceable as to any person with whom 

such property was held or maintained (and as to such person only) in 

cases in which such person is able to establish to the satisfaction of 

the Director of the Office of Foreign Assets Control each of the 

following:

    (1) Such transfer did not represent a willful violation of the 

provisions of this part by the person with whom such property was held 

or maintained;

    (2) The person with whom such property was held or maintained did 

not have reasonable cause to know or suspect, in view of all the facts 

and circumstances known or available to such person, that such transfer 

required a license issued pursuant to this part and was not so licensed, 

or if a license did purport to cover the transfer, that such license had 

been obtained by misrepresentation of a third party or withholding of 

material facts or was otherwise fraudulently obtained; and

    (3) The person with whom such property was held or maintained filed 

with the Office of Foreign Assets Control a report setting forth in full 

the circumstances relating to such transfer promptly upon discovery 

that:

    (i) Such transfer was in violation of the provisions of this part or 

any regulation, ruling, instruction, direction, or license issued 

pursuant to this part;

    (ii) Such transfer was not licensed or authorized by the Director of 

the Office of Foreign Assets Control; or



[[Page 494]]



    (iii) If a license did purport to cover the transfer, such license 

had been obtained by misrepresentation of a third party or withholding 

of material facts or was otherwise fraudulently obtained.



    Note to paragraph (d) of Sec. 598.205: The filing of a report in 

accordance with the provisions of paragraph (d)(3) of this section shall 

not be deemed evidence that the terms of paragraphs (d)(1) and (2) of 

this section have been satisfied.



    (e) Unless licensed or authorized pursuant to this part, any 

attachment, judgment, decree, lien, execution, garnishment, or other 

judicial process is null and void with respect to any property in which 

on or since the effective date there existed an interest of a specially 

designated narcotics trafficker.