31 CFR § 561.202 - Prohibitions on persons owned or controlled by U.S. financial institutions.

Date issued: Feb. 27 2012

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TURBOFAC Commentary (1470 words)

Notes:

This provision implements Sec. 104(d) of CISADA [1]. As the time this provision was enacted, the ITRSHRA of 2012 was not yet passed and the basic prohibitions of the ITSR only applied to U.S. persons, including foreign branches of U.S. persons but not all persons "owned or controlled" by U.S. persons, including subsidiaries. Currently, 560.215 (implementing Sec. 218 of ITRSHRA) extends most of the prohibitions of the ITSR to all persons owned or controlled by U.S. persons.

i) PROHIBITED TRANSACTIONS; RELEVANCE FOR THE FTOSR

The question, then, is whether and to what extent this provision is effectively redundant. Even though 560.215 only prohibits transactions "with" persons subject...