The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States •Circular No. 3 3 9 8 1 . March 18, 1942 J FOREIGN FUNDS CONTROL Executive Order No. 8389, as Amended, and Regulations Issued Pursuant Thereto, Relating to Transactions in Foreign Exchange, Etc. To all Banks, Brokers, and Other Financial Institutions in the Second Federal Seserve District: The information given below is sent to you at the request of the Treasury Department. Because the prompt and complete enforcement of the provisions of the freezing Order is of vital importance to the successful prosecution of the war, it is of the utmost importance that any suspected evasion or violation of the freezing Order be brought to the attention of the Treasury Department as promptly as possible. The freezing Order prohibits, unless authorized by a general or specific license issued by the Treasury Department, all transactions in which a national of any blocked country or a person named on the "Proclaimed List" has any interest whatsoever. Officials of banks, securities houses, and other financial institutions throughout the country are in a strategic position to discover any attempts to evade or avoid the provisions of the freezing Order and by reporting such discoveries to render invaluable assistance to the Foreign Funds Control in its efforts adequately and efficiently to administer the Order. The Treasury urgently requests all persons to transmit to the nearest Federal Reserve Bank, or Federal Reserve Bank branch office, all significant details with respect to any suspected evasion or violation of the freezing Order. The Federal Reserve Banks are prepared to make arrangements for a Treasury representative to receive or to visit any person having information to report in order to accept, in confidence, oral or written statements relating to such matters. Your attention is directed to the fact that in view of the recent amendment to General License No. 42 and the provisions of General License No. 68A most individuals now within the United States who were blocked nationals are now licensed as generally licensed nationals. Should facts be brought to your attention indicating that action should be taken to block the accounts of generally licensed nationals, or of any United States citizen residing in the United States, you should promptly advise the Federal Reserve Bank of such facts and keep close watch over such accounts pending receipt of instructions from the Federal Reserve Bank. You should not block accounts of persons within the United States who are citizens of the United States nor, in the ordinary case, of persons within the United States who are generally licensed nationals, except pursuant to specific instructions from the Treasury Department or the Federal Reserve Bank. (OVER) In those special cases in which information at your disposal indicates the necessity, in order to further the objectives of the freezing Order, of immediately blocking the account of a person in the United States who is a generally licensed national without first referring the matter to the Federal Reserve Bank, the following information should be promptly reported to the Federal Reserve Bank: (1) The name and address of the person in question; (2) The names of any business enterprises owned by him or with which he is affiliated; (3) The facts on the basis of which the account has been blocked, including all significant details; and (4) The names of any other banking institutions in which you know such person has accounts. It is important that this information be made available to the Federal Reserve Bank at once in order that it may be in a position to take any other steps called for in such cases. Your cooperation will be appreciated by your Government. ALLAN SPEOUL, President.