Guidance on Filing the Annual Report of Blocked Property

Date issued: Sep. 22 2023

TURBOFAC Commentary (263 words)

Notes:

1) This guidance document was initially issued one week after the substantial amendment of 501.603 of the RPPR (and amended on 7-1-22). The document does not appear to provide interpretive guidance beyond what is otherwise evident from the regulations and the OFAC-issued editable spreadsheet, but it is notable that OFAC makes the following clarifications:

i) persons reporting blocked property need not report “restricted” but not blocked Iranian accounts
ii) persons reporting blocked property need not report property that has been legally unblocked but not yet returned to its owners.

This underscores that the relevant question is whether the property is legally blocked, not whether it, in a loose sense, 'pertains to' OFAC-administered sanctions regulations.

2) Guidance amended on 9-23-22 to change dates from 2022 to 2023 (no substantive changes).

3) See "Asset Type - Examples of an asset type include but are not limited to: a wire transfer, money transfer, bank account, brokerage account, certificate of deposit, check, claim, collateral, credit card, deposits, letter of credit, standby letters of credit, insurance, prepaid card, real estate, safe deposit, savings, secure debt, secure equity, stocks, dividends, tangible property, and trade documents." It appears to be implied that all of the above are not "informational materials" that are exempt from blocking, but there may be some examples of "trade documents" that are not negotiable instruments, e.g. a copy of an invoice, that would qualify. Others, like negotiable bills of lading, would clearly not fall within the scope of the informational materials exemption and be regarded as "trade documents".