§516.513
ActiveTransactions related to closing a correspondent account or payable-through account
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Summary
During the 10-day period beginning on the effective date of the prohibition in section 4(b)(i) of E.O. 14404 (or of any such prohibition imposed by a further Executive order under the national emergency declared in E.O. 14380) on maintaining a correspondent account or a payable-through account for a foreign financial institution added to OFAC's CAPTA List, authorizes U.S. financial institutions that maintain such accounts to process through the account only those transactions that are for the purpose of, and necessary for, closing it, and to transfer the funds remaining in it to an account of the foreign financial institution located outside the United States and close the account.
Conditions
Nothing in the section authorizes opening a correspondent or payable-through account for a foreign financial institution on the CAPTA List, or unblocking or dealing in property blocked under any other part of 31 CFR chapter V in the process of closing the account. Transactions outside its scope, or after the 10-day period, require a specific license (applications per 31 CFR 501.801).
Reporting requirement
A report must be filed with OFAC within 30 days of the closure of an account, providing full details on the closing of each correspondent account or payable-through account maintained by a U.S. financial institution for a foreign financial institution added to the CAPTA List, including complete information on the closing of the account and on all transactions processed or executed through it under this section, including the account outside the United States to which the remaining funds were transferred.