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31 CFR § 560.215 - Prohibitions on foreign entities owned or controlled by U.S. persons.

Date issued: Sep. 30 2020

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§560.215 Prohibitions on foreign entities owned or controlled by U.S. persons.
(a) Except as otherwise authorized pursuant to this part, an entity that is owned or controlled by a United States person and established or maintained outside the United States is prohibited from knowingly engaging in any transaction, directly or indirectly, with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited pursuant to this part if engaged in by a United States person or in the United States.
Note 1 to paragraph (a) of §560.215: If a transaction is exempt from the prohibitions of this part if engaged in by a U.S. person, it would not be prohibited for an entity that is owned or controlled by a United States person and established or maintained outside the United States (a "U.S.-owned or -controlled foreign entity") to engage...

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TURBOFAC Commentary (5675 words)

Notes:

This comment addresses only methodologies for determining whether foreign entities are “U.S.-owned or -controlled foreign entities” for the purposes of 560.215 (b)(i)-(iii). For all other 560.215-related issues, refer to Consolidated Note on 560.215 and 560.556 (System Ed. Note).

A) Apparent Exclusion for Certain Foreign Natural Persons non-Resident, but Temporarily Physically Present in the U.S., Applicable for § 560.215(b)(i)-(iii)

With respect to the status of foreign-incorporated entities owned or controlled by natural persons temporarily in the United States, as a strict, technical matter, a natural foreign person on U.S. soil as a tourist or on a temporary business trip is a "U.S. person" as a result of the physical presence in the U.S., and § 560.215 of the ITSR can be read such that any entity owned or otherwise...