31 CFR § 560.405 - Transactions ordinarily incident to a licensed transaction authorized.

Date issued: Jan. 21 2016

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TURBOFAC Commentary (530 words)


1) Except as otherwise discussed, this provision is substantively identical across sanctions programs. OFAC appears to interpret, in a harmonious manner cross-programmatically, the construction “[a]ny transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized,” at least as it appears in the 400-level interpretive provision. Differences in the scope of the 400-level ordinarily incident provision across programs are made explicit, through carveouts such as those found in 560.405.

Detailed discussions on the scope and operation of this provision—as well as the way in which the “ordinarily incident” issue is handled in the context of exempt transactions—can be found in the following documents: Notes Common to the 400-Level Interpretive Provisions Authorizing Transactions "Ordinarily Incident" to a Licensed Transaction; Transactions Incident to Others in General (System Ed. Note); General Note and Associated Matrix Pertaining to U.S. Person Engagement in Transactions...