OFAC Regulatory Provisions - 31 CFR § 598.406

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TURBOFAC Commentary (242 words)

Notes:

1) This provision is substantively similar to a like provision contained in all non-abbreviated sanctions regulations, except that (i) the versions found in -based embargo regulations (560.410 , 510.405 , 542.405 , 589.405 Crimea) cover services exported to an embargoed country, in addition to the provision of services to blocked persons and with respect to blocked property, and (ii) versions of this provision implemented 1-21-22 and thereafter are titled "Provision and receipt of services," instead of just "Provision of services," and there is a subsection specifying that "[t]he prohibitions on transactions contained in § [5XX].201 apply to services received in the United States or by U.S. persons, wherever located, where the service is performed by, or at the direction of, a person whose property and interests in property are blocked pursuant to § 5XX.201." This language should be “read into” all of the pre-existing ordinary “provision of services” provisions. The "at the direction of" in the more recent version is a notable interpretation of the scope of the blocking prohibition that did not appear in OFAC's regulations, in this provision or elsewhere, prior to 1-21-22.

For comments on the scope and significance of the provision, see Notes Common to “Provision of services” Interpretive Provisions.

2) This provision was "modernized" on 5-17-2021, bringing the language in line with other recently issued sets of sanctions regulations and adding the reference to the new "medical services" .

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31 CFR § 598.406 - Provision of services.

TURBOFAC Commentary (242 words)