31 CFR § 515.319 - Blocked account.

Date issued: Jul. 20 1963

TURBOFAC Commentary (188 words)

Notes:

1) The Blocked account definition of the CACR is unique to the CACR insofar as it omits any reference to the 50% rule and insofar as the 50% rule does not actually apply. See 515.302, providing a variety of circumstances in which entities may be considered blocked "Nationals" of Cuba for reasons other than 50% or greater ownership by blocked entity. OFAC flags this issue in its 2014 Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property are Blocked.

2) The reference to accounts "with respect to which account payments, transfers or withdrawals or other dealings may not be made or effected except pursuant to an authorization or license authorizing such action" means that the provision applies to accounts that are actually frozen, i.e. that have come within the possession or control of a person subject to U.S. jurisdiction. This does not include all accounts offshore subject to the transaction prohibitions of 515.201 because a Cuban has an interest in them. This is made somewhat clearer in IEEPA-based blocking regulations, where there is a definition of "Blocked account; blocked property" (e.g. 510.302).