31 CFR § 544.203 - Holding of funds in interest-bearing accounts; investment and reinvestment.

Date issued: Apr. 13 2009

TURBOFAC Commentary (106 words)

Notes:

This provision is substantively identical to all parallel "holding of funds" provisions found in active sanctions regulations with blocking provisions. From 2006 onward, there has not been an enforcement action brought in connection with this provision or its analogues.

Note that these sanctions regulations also have a separate GL for the "Investment and reinvestment of certain funds." That GL, which is not included in all sanctions regulations, deals with securities and other asset classes not within the scope of this provision.

See FAQ # 33, specitying that "commercially reasonable" is "a rate currently offered to other depositors on deposits or instruments of comparable size and maturity."