---
kind: "section"
citation: "31 C.F.R. § 597.404"
title: "31"
number: "597.404"
heading: "Setoffs prohibited."
url: "https://uscodex.org/cfr/31/597.404"
---

# §597.404. Setoffs prohibited.


A setoff against blocked funds (including a blocked account) by a U.S. financial institution is a prohibited transaction under [§ 597.201](/cfr/31/597.201.md) if effected after the effective date.


## Notes

### Authority

Authority: 8 U.S.C. 1189; 18 U.S.C. 2339B; 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).

### Source

Source: 62 FR 52495, Oct. 8, 1997, unless otherwise noted.