---
kind: "section"
citation: "31 C.F.R. § 550.406"
title: "31"
number: "550.406"
heading: "Status of entities owned by one or more persons whose property and interests in property are blocked."
url: "https://uscodex.org/cfr/31/550.406"
---

# §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)](/cfr/31/550.201.md?p=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)](/cfr/31/2.md?p=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)](/cfr/31/550.201.md?p=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)](/cfr/31/550.201.md?p=b), regardless of whether the name of the entity is incorporated into OFAC's Specially Designated Nationals and Blocked Persons List (SDN List).

## Notes

### Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 14046, 86 FR 52389, 3 CFR, 2022 Comp., p. 549.

### Source

Source: 87 FR 7374, Feb. 9, 2022, unless otherwise noted.