Civil Enforcement Information - Aetna Life Insurance Company

Date issued: Jul. 11 2008

TURBOFAC Commentary (282 words)

Notes:

1) While the broad prohibition of the CACR (515.201) is silent on the range of circumstances that constitute "dealing in" property in which a Cuban has an interest, guidance is available in the form of OFAC's interpretive provisions in connection with typical list-based blocking programs.

For example, 541.405 (a boilerplate provision) provides that the basic blocking language is interpreted such that U.S. persons may not provide services:
(1) On behalf of or for the benefit of a person whose property and interests in property are blocked pursuant to §541.201(a); or
(2) With respect to property interests of any person whose property and interests in property are blocked pursuant to §541.201(a).

In addition, the basic blocking prohibition (e.g. §541.201) itself specifies that:
(b) The prohibitions in paragraph (a) of this section include, but are not limited to, prohibitions on the following transactions:
(1) The making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to paragraph (a) of this section; and
(2) The receipt of any contribution or provision of funds, goods, or services from any person whose property and interests in property are blocked pursuant to paragraph (a) of this section.

515.201 is interpreted to cover all of the above with respect to Cuban nationals. Here, at a minimum, Aetna performed a service with respect to property interests of a blocked Cuban.

2) Compare Metropolitan Life Insurance Company (2011), and see 515.526 for (an impliedly) detailed accounting of the range of activities with respect to blocked life insurance policies that, without an applicable license, constitute "dealing in" or "transferring" blocked property.