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§542.404 Transactions ordinarily incident to a licensed transaction.
(a) Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except:
(1) An ordinarily incident transaction, not explicitly authorized within the terms of the license, by or with the Government of Syria or any other person whose property and interests in property are blocked pursuant to §542.201; or
(2) An ordinarily incident transaction, not explicitly authorized within the terms of the license, involving a debit to a blocked account or a transfer of blocked property.
(b) Example. A license authorizing a person to complete a securities sale involving Company A, whose property and interests in property are blocked pursuant to §542.201, also authorizes other persons to engage in activities that are ordinarily incident and necessary to complete the sale, including transactions by the buyer, broker, transfer agents, and banks, provided that such...
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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.
Detailed discussions on the scope and operation of this...