§ 550.406 - Status of entities owned by one or more persons whose property and interests in property are blocked.

§ 550.406 Status of entities owned by one or more persons whose property and interests in property are blocked.

(a) No entity shall be blocked pursuant to § 550.201(a) solely because it is owned in whole or in part, directly or indirectly, by one or more sanctioned persons, unless the entity is itself a sanctioned person and the sanctions in section 2(a)(i)(A) of E.O. 14046 are imposed on the entity.

(b) Unless otherwise stated in the relevant Executive order, persons whose property and interests in property are blocked pursuant to § 550.201(b) have an interest in all property and interests in property of an entity in which such persons directly or indirectly own, whether individually or in the aggregate, a 50 percent or greater interest. The property and interests in property of such an entity, therefore, are blocked, and such an entity is a person whose property and interests in property are blocked pursuant to § 550.201(b), regardless of whether the name of the entity is incorporated into OFAC's Specially Designated Nationals and Blocked Persons List (SDN List).