# 31 CFR § 535.203: Effect of transfers violating the provisions of this part > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-31-535.203 ## Section - **Citation:** 31 CFR § 535.203 - **Heading:** Effect of transfers violating the provisions of this part - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 31—Money and Finance: Treasury > Subtitle B—Regulations Relating to Money and Finance > CHAPTER V—OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY > PART 535—IRANIAN ASSETS CONTROL REGULATIONS > Subpart B—Prohibitions ## Text (a) Any transfer after the effective date which is in violation of any provision of this part or of any regulation, ruling, instruction, license, or other direction or authorization thereunder and involves any property in which Iran has or has had an interest since such effective date is null and void and shall not be the basis for the assertion or recognition of any interest in or right, remedy, power or privilege with respect to such property. (b) No transfer before the effective date shall be the basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any property in which Iran has or has had an interest since the effective date unless the person with whom such property is held or maintained had written notice of the transfer or by any written evidence had recognized such transfer prior to such effective date. (c) Unless otherwise provided, an appropriate license or other authorization issued by or pursuant to the direction or authorization of the Secretary of the Treasury before, during or after a transfer shall validate such transfer or render it enforceable to the same extent as it would be valid or enforceable but for the provisions of the International Emergency Economic Powers Act and this part and any ruling, order, regulation, direction or instruction issued hereunder. (d) Transfers of property which otherwise would be null and void, or unenforceable by virtue of the provisions of this section shall not be deemed to be null and void, or unenforceable pursuant to such provisions, as to any person with whom such property was held or maintained (and as to such person only) in cases in which such person is able to establish each of the following: (1) Such transfer did not represent a willful violation of the provisions of this part by the person with whom such property was held or maintained; (2) The person with whom such property was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or available to such person, that such transfer required a license or authorization by or pursuant to the provision of this part and was not so licensed or authorized or if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation or the withholding of material facts or was otherwise fraudulently obtained; and (3) Promptly upon discovery that: (i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license or other direction or authorization thereunder, or (ii) Such transfer was not licensed or authorized by the Secretary of the Treasury, or (iii) If a license did purport to cover the transfer, such license had been obtained by misrepresentation or the withholding of material facts or was otherwise fraudulently obtained; the person with whom such property was held or maintained filed with the Treasury Department, Washington, D.C., a report in triplicate setting forth in full the circumstances relating to such transfer. The filing of a report in accordance with the provisions of this paragraph shall not be deemed to be compliance or evidence of compliance with paragraphs (d) (1) and (2) of this section. (e) Unless licensed or authorized pursuant to this part any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is null and void with respect to any property in which on or since the effective date there existed an interest of Iran. (f) For the purpose of this section the term property includes gold, silver, bullion, currency, coin, credit, securities (as that term is defined in section 2(l) of the Securities Act of 1933, as amended), bills of exchange, notes, drafts, acceptances, checks, letters of credit, book credits, debts, claims, contracts, negotiable documents of title, mortgages, liens, annuities, insurance policies, options and futures in commodities, and evidences of any of the foregoing. The term property shall not, except to the extent indicated, be deemed to include chattels or real property. [44 FR 65956, Nov. 15, 1979, as amended at 45 FR 24432, Apr. 9, 1980] ## Nearby sections - [31 CFR § 535.101 § 535.101 Relation of this part to other laws and regulations.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.101.md) - [31 CFR § 535.201 § 535.201 Transactions involving property in which Iran or Iranian entities have an interest.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.201.md) - [31 CFR § 535.202 § 535.202 Transactions with respect to securities registered or inscribed in the name of Iran.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.202.md) - [31 CFR § 535.203 § 535.203 Effect of transfers violating the provisions of this part.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.203.md) - [31 CFR § 535.208 § 535.208 Evasions; effective date.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.208.md) - [31 CFR § 535.210 § 535.210 Direction for establishing an escrow agreement.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.210.md) - [31 CFR § 535.211 § 535.211 Direction involving transfers by the Federal Reserve Bank concerning certain Iranian property.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.211.md) - [31 CFR § 535.212 § 535.212 Direction to transfer property in which Iran or an Iranian entity has an interest by branches and offices of United States banks located outside the United States.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.212.md) - [31 CFR § 535.213 § 535.213 Direction involving property held by offices of banks in the United States in which Iran or an Iranian entity has an interest.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.213.md) - [31 CFR § 535.214 § 535.214 Direction involving other financial assets in which Iran or an Iranian entity has an interest held by any person subject to the jurisdiction of the United States.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.214.md) - [31 CFR § 535.215 § 535.215 Direction involving other properties in which Iran or an Iranian entity has an interest held by any person subject to the jurisdiction of the United States.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.215.md) - [31 CFR § 535.216 § 535.216 Prohibition against prosecution of certain claims.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.216.md) - [31 CFR § 535.217 § 535.217 Blocking of property of the former Shah of Iran and of certain other Iranian nationals.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.217.md) - [31 CFR § 535.218 § 535.218 Prohibitions and nullifications with respect to property described in §§ 535.211, 535.212, 535.213, 535.214 and 535.215 and standby letters of credit.](https://www.frixlaw.com/law-library/statutes/ecfr-31-535.218.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-31-535.203. Check the current official text before relying on it. Not legal advice.