31 CFR § 542.515 Operation of accounts authorized.

Date issued: May. 02 2014

TURBOFAC Commentary (252 words)

Notes:

1) The implication of this GL, confirmed by, e.g. Case No. IA-16801, is that OFAC would consider the mere maintenance of a U.S.-based account for a person "in Syria" to constitute an "export" of a "financial service" to Syria, prohibited unless otherwise authorized, even if the person in Syria is a U.S. citizen. This should include persons ordinarily resident in Syria, wherever located, as well as persons not ordinarily resident in Syria but "in Syria." Compare Case No. IA-16053, but note that the ITSR is structured differently than the SySR with respect to the operation of accounts (see 560.320 and 560.517).

2) With respect to the distinction between persons "ordinarily resident" in Syria and persons merely "in" Syria, note that 542.512 (personal remittances) only pertains to persons "ordinarily resident" in Syria. Presumably, a U.S. person merely "in Syria" transferring money to Syria from his or her own U.S.-based account would be exempt from regulation as a transaction ordinarily incident to Travel (542.211(c)). That would explain why OFAC did not specifically authorize those transactions.

3) Does the proviso at 542.515(b) mean that the accounts cannot be used to process transactions for persons ordinarily resident in Syria if the transaction would not qualify as a "noncommercial, personal remittance" even if the underlying transaction would be authorized by some other provision? The text of the regulations suggests that the answer is "no," but see Nov. 2014 Email from OFAC SC&E to Local Sudanese UNDP Staff in re: UNFCU Accounts.