31 C.F.R. § 550.202

Effect of transfers violating the provisions of this part

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(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 blocked pursuant to § 550.201, 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 interest in property.

(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 blocked pursuant to § 550.201, unless the person who holds or maintains such property, prior to that date, had written notice of the transfer or by any written evidence had recognized such transfer.

(c) Unless otherwise provided, a license or other authorization issued by OFAC 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 this part and any regulation, order, directive, ruling, instruction, or license issued pursuant to this part.

(d) Transfers of property 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 is or was held or maintained (and as to such person only) in cases in which such person is able to establish to the satisfaction of OFAC 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 is or was held or maintained (and as to such person only);

(2) The person with whom such property is or 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 or authorization issued pursuant to this part and was not so licensed or authorized, or, if a license or authorization did purport to cover the transfer, that such license or authorization 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 is or was held or maintained filed with OFAC 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, license, or other directive or authorization issued pursuant to this part;

(ii) Such transfer was not licensed or authorized by OFAC; or

(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.

(e) 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.

(f) Unless licensed pursuant to this part, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is null and void with respect to any property or interest in property blocked pursuant to § 550.201.

Notes of Decisions

Cited in 6 cases, 1988–2008 · leading case: United States v. Elashyi, 554 F.3d 480 (5th Cir. 2008).

Sort: Relevance Newest Treatment

United States v. Elashyi, 554 F.3d 480 (5th Cir. 2008). · cites it 2× “31 C.F.R. § 550.202 . Defendants were charged with willfully violating section 550.”

United States v. McKeeve, 131 F.3d 1 (1st Cir. 1997). “§ 1701 note; 31 C.F.R. § 550.202 (1997); 15 C.F.R. §§ 774.”

United States v. Soussi, 316 F.3d 1095 (10th Cir. 2002). “” 31 C.F.R. § 550.202 (1991). Like the Executive Order, the regulations prohibited “[a]ny transaction for the purpose of, or which has the effect of, evading or avoiding any of the prohibitions set forth in [the regulations].”

United States v. Doyle, 130 F.3d 523 (2d Cir. 1997). “§§ 1701 ,1702, and 1705(b); 31 C.F.R. §§ 550.202 , 550.205, 550.208-.”

United States v. Keleta, 534 F. Supp. 2d 106 (D.D.C. 2008). “The government also presented evidence that Himbol transferred funds to Libya in 2001 and 2002 (in violation of the United States Government’s ban on financial transactions with that country at the time, see 31 C.F.R. § 550.202 ), which further underscores Himbol’s failure to…”

Vets. Peace Convoy, Inc. v. Schultz, 722 F. Supp. 1425 (S.D. Tex. 1988). “205 provides: “Except as authorized, no goods may be exported from the United States either to or destined for Nicaragua, except those for the organized democratic resistance, and except donated articles such as food, clothing, and medicine, intended to be used to relieve human…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.