31 CFR § 542.404 Transactions ordinarily incident to a licensed transaction.

Date issued: May. 02 2014

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TURBOFAC Commentary (331 words)

Notes:

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. By all appearances, OFAC’s view is that the authorizations and limitations found in the typical boilerplate version of this provision are true of all licensed transactions, even when not associated with regulations containing this provision. In other words, that certain transactions ordinarily incident to licensed transactions are inherently authorized by a given license. See 515.421, and comments thereto.

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