Notable Examples Illustrating the Operation of the "Interest" Concept as Applied to Funds Transfers (System Ed. Note)

Last substantive commentary amendment:
Aug. 01 2025

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TURBOFAC Commentary (2461 words)

Examples Illustrating the Operation of the “Interest" Concept as Applied to Funds Transfers

1) ANY FUNDS TRANSFER—whether held by an originating, beneficiary or intermediary bank—is "property" in which a blocked person has an interest if the funds transfer is made in connection to an underlying transaction in which a U.S. person could not directly engage due to the involvement of a blocked person. Beyond that, a useful rule of thumb is that when a transaction (e.g. a funds transfer) is of a sort that could be authorized as “ordinarily incident” to an underlying prohibited transaction involving a blocked person, the “ordinarily incident” transaction is ALWAYS one in which the blocked person has an “interest” even if the “ordinarily incident” transaction does not directly involve the blocked person. Refer to Examples of Transactions Deemed to be, and not to be, “Ordinarily Incident” to Underlying Licensed Activities (System...