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Part 597—Foreign Terrorist Organizations Sanctions Regulations

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Part 597—Foreign Terrorist Organizations Sanctions Regulations § 596.801 31 CFR Ch. V (7±1±00 Edition) Code, or imprisoned for not more than PART 597ÐFOREIGN TERRORIST 10 years, or both. ORGANIZATIONS SANCTIONS REGULATIONS Subpart HÐProcedures Subpart AÐRelation of This Part to Other § 596.801 Procedures. Laws and Regulations For license application procedures Sec. and procedures relating to amend- 597.101 Relation of this part to other laws ments, modifications, or revocations of and regulations. licenses; administrative decisions; rulemaking; and requests for docu- Subpart BÐProhibitions ments pursuant to the Freedom of In- 597.201 Prohibited transactions involving formation and Privacy Acts (5 U.S.C. blocked assets or funds of foreign ter- 552 and 552a), see subpart D of part 501 rorist organizations or their agents. of this chapter. 597.202 Effect of transfers violating the pro- visions of this part. [62 FR 45112, Aug. 25, 1997] 597.203 Holding of funds in interest-bearing accounts; investment and reinvestment. § 596.802 Delegation by the Secretary 597.204 Evasions; attempts; conspiracies. of the Treasury. Subpart CÐGeneral Definitions Any action which the Secretary of the Treasury is authorized to take pur- 597.301 Agent. suant to section 321 of the 597.302 Assets. Antiterrorism and Effective Death 597.303 Blocked account; blocked funds. Penalty Act of 1996, Pub. L. 104±132, 110 597.304 Designation. 597.305 Effective date. Stat. 1214, 1254 (18 U.S.C. 2332d), may be 597.306 Entity. taken by the Director, Office of For- 597.307 Financial institution. eign Assets Control, or by any other 597.308 Financial transaction. person to whom the Secretary of the 597.309 Foreign terrorist organization. Treasury has delegated authority so to 597.310 Funds. act. 597.311 General license. 597.312 Interest. [61 FR 43463, Aug. 23, 1996. Redesignated at 62 597.313 License. FR 45112, Aug. 25, 1997] 597.314 Person. 597.315 Specific license. 597.316 Transaction. Subpart IÐPaperwork Reduction 597.317 Transfer. Act 597.318 United States. 597.319 U.S. financial institution. § 596.901 Paperwork Reduction Act no- tice. Subpart DÐInterpretations For approval by the Office of Man- 597.401 Reference to amended sections. agement and Budget (``OMB'') under 597.402 Effect of amendment. the Paperwork Reduction Act of infor- 597.403 Termination and acquisition of an interest in blocked funds. mation collections relating to record- 597.404 Setoffs prohibited. keeping and reporting requirements, to 597.405 Transactions incidental to a licensed licensing procedures (including those transaction. pursuant to statements of licensing 597.406 Offshore transactions. policy), and to other procedures, see § 501.901 of this chapter. An agency may Subpart EÐLicenses, Authorizations, and not conduct or sponsor, and a person is Statements of Licensing Policy not required to respond to, a collection 597.501 Effect of license or authorization. of information unless it displays a 597.502 Exclusion from licenses and author- valid control number assigned by OMB. izations. 597.503 Payments and transfers to blocked [62 FR 45112, Aug. 25, 1997] accounts in U.S. financial institutions. 824 VerDate 11<MAY>2000 04:57 Aug 16, 2000 Jkt 190115 PO 00000 Frm 00824 Fmt 8010 Sfmt 8010 Y:\SGML\190115T.XXX pfrm06 PsN: 190115T Office of Foreign Assets Control, Treasury § 597.201 597.504 Entries in certain accounts for nor- scope of any other part of this chapter, mal service charges authorized. including (but not limited to) the Ter- 597.505 Payment for certain legal services. rorism Sanctions Regulations, part 595 of this chapter, and does not excuse Subpart FÐReports any person from complying with any 597.601 Records and reports. other part of this chapter, including (but not limited to) part 595 of this Subpart GÐPenalties chapter. 597.701 Penalties. (c) This part does not implement, 597.702 Prepenalty notice. construe, or limit the scope of any 597.703 Response to prepenalty notice. criminal statute, including (but not 597.704 Penalty notice. limited to) 18 U.S.C. 2339B(a)(1) and 597.705 Administrative collection; referral 2339A, and does not excuse any person to United States Department of Justice. from complying with any criminal statute, including (but not limited to) Subpart HÐProcedures 18 U.S.C. 2339B(a)(1) and 18 U.S.C. 597.801 Procedures. 2339A. 597.802 Delegation by the Secretary of the Treasury. Subpart BÐProhibitions Subpart IÐPaperwork Reduction Act § 597.201 Prohibited transactions in- 597.901 Paperwork Reduction Act notice. volving blocked assets or funds of foreign terrorist organizations or AUTHORITY: 31 U.S.C. 321(b); Pub. L. 104±132, 110 Stat. 1214, 1248±53 (8 U.S.C. 1189, 18 U.S.C. their agents. 2339B). (a) Upon notification to Congress of SOURCE: 62 FR 52495, Oct. 8, 1997, unless the Secretary of State's intent to des- otherwise noted. ignate an organization as a foreign ter- rorist organization pursuant to 8 U.S.C. Subpart AÐRelation of This Part to 1189(a), until the publication in the Other Laws and Regulations FEDERAL REGISTER as described in paragraph (c) of this section, any U.S. § 597.101 Relation of this part to other financial institution receiving notice laws and regulations. from the Secretary of the Treasury by (a) This part is separate from, and means of order, directive, instruction, independent of, the other parts of this regulation, ruling, license, or otherwise chapter, with the exception of part 501 shall, except as otherwise provided in of this chapter, the recordkeeping and such notice, block all financial trans- reporting requirements and license ap- actions involving any assets of such or- plication and other procedures of which ganization within the possession or apply to this part. Differing statutory control of such U.S. financial institu- authority and foreign policy and na- tion until further directive from the tional security contexts may result in Secretary of the Treasury, Act of Con- differing interpretations of similar lan- gress, or order of court. guage among the parts of this chapter. (b) Except as otherwise authorized by No license or authorization contained order, directive, instruction, regula- in or issued pursuant to those other tion, ruling, license, or otherwise, from parts authorizes any transaction pro- and after the designation of an organi- hibited by this part. No license or au- zation as a foreign terrorist organiza- thorization contained in or issued pur- tion pursuant to 8 U.S.C. 1189(a), any suant to any other provision of law or U.S. financial institution that becomes regulation authorizes any transaction aware that it has possession of or con- prohibited by this part. trol over any funds in which the des- (b) No license or authorization con- ignated foreign terrorist organization tained in or issued pursuant to this or its agent has an interest shall: part relieves the involved parties from (1) Retain possession of or maintain complying with any other applicable control over such funds; and laws or regulations. This part does not (2) Report to the Secretary of the implement, construe, or limit the Treasury the existence of such funds in 825 VerDate 11<MAY>2000 04:57 Aug 16, 2000 Jkt 190115 PO 00000 Frm 00825 Fmt 8010 Sfmt 8010 Y:\SGML\190115T.XXX pfrm06 PsN: 190115T § 597.202 31 CFR Ch. V (7±1±00 Edition) accordance with § 501.603 of this chap- eign terrorist organization or its agent ter. has an interest, or has had an interest (c) Publication in the FEDERAL REG- since such date, unless the financial in- ISTER of the designation of an organiza- stitution with whom such funds or as- tion as a foreign terrorist organization sets are held or maintained, prior to pursuant to 8 U.S.C. 1189(a) shall be such date, had written notice of the deemed to constitute a further direc- transfer or by any written evidence had tive from the Secretary of the Treas- recognized such transfer. ury for purposes of paragraph (a) of (c) Unless otherwise provided, an ap- this section, and shall require the ac- propriate license or other authoriza- tions contained in paragraph (b) of this tion issued by or pursuant to the direc- section. tion or authorization of the Director of (d) The requirements of paragraph (b) the Office of Foreign Assets Control be- of this section shall remain in effect fore, during, or after a transfer shall until the effective date of an adminis- validate such transfer or render it en- trative, judicial, or legislative revoca- forceable to the same extent that it tion of the designation of an organiza- would be valid or enforceable but for tion as a foreign terrorist organization, the provisions of this part, and any or until the designation lapses, pursu- regulation, order, directive, ruling, in- ant to 8 U.S.C. 1189. struction, or license issued hereunder. (e) When a transaction results in the (d) Transfers of funds or assets which blocking of funds at a financial institu- otherwise would be null and void or un- tion pursuant to this section and a enforceable by virtue of the provisions party to the transaction believes the of this section shall not be deemed to funds have been blocked due to mis- be null and void or unenforceable as to taken identity, that party may seek to any financial institution with whom have such funds unblocked pursuant to such funds or assets were held or main- the administrative procedures set forth tained (and as to such financial institu- in § 501.806 of this chapter. Requests for tion only) in cases in which such finan- the unblocking of funds pursuant to cial institution is able to establish to § 501.806 must be submitted to the at- the satisfaction of the Director of the tention of the Compliance Programs Office of Foreign Assets Control each Division.
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