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FEDERAL RESERVE BANK OF DALLAS Dallas, Texas, May 11,1940 E X E C U T IV E O R D E R NO. 8 4 0 5 A M E N D IN G E X E C U T IV E O R D E R NO. 8 389 O F A P R IL 10, 1 9 4 0 , A M E N D IN G E X E C U T IV E O R D E R N O . 6 5 6 0 O F J A N U A R Y 1 5 , 1 9 3 4 , R E G U L A T IN G T R A N S A C T I O N S IN F O R E IG N E X C H A N G E , T R A N S F E R S O F C R E D IT , A N D T H E E X P O R T O F C O IN A N D C U R R E N C Y AND AMENDED R E G U L A T IO N S F O R E IG N IS S U E D PU RSUAN T TH ERETO, IN C L U D IN G REPORTS OF P R O P E R T Y IN T E R E S T S IN T H E U N IT E D S T A T E S To All Banking Institutions, and Others Concerned, in the Eleventh Federal Reserve District: There is quoted herein for your information text of Executive Order No. 8405 o f May 10, 1940, and text o f regulations issued by the Secretary o f the Treasury under the same date pursuant thereto. Executive Order No. 8405 amends Executive Order No. 8389 of April 10, 1940, so as to extend the prohibitions therein to property in which The Netherlands, Belgium, and Luxembourg, or any national thereof, has at any time on or since May 10, 1940, had any interest of any nature whatsoever. The new order also specifically prohibits all transfers, withdrawals, or exportations of, or dealings in, any evi dences of indebtedness or evidences o f the ownership of property. The new Executive Order and the regulations issued thereunder provide for the filing o f detailed reports concerning property interests in the United States in which The Netherlands, Belgium, or Luxem bourg, or any national thereof, has at any time on or since May 10, 1940, had an interest of any nature whatsoever. Appropriate forms are available at this bank on which to make applications, as provided in Section 130.4 of the regulations to engage in foreign exchange transactions, etc., involving property in which Norway or Denmark, or any national thereof, has at any time on or since April 8, 1940, had any interest of any nature whatsoever, direct or indirect, or if involving property in which The Netherlands, Belgium, or Luxembourg, or any national thereof, has at any time on or since May 10, 1940, had any interest of any nature whatsoever, direct or indirect. The new regulations quoted herein eliminate the requirement under Section 130.4 of the regulations issued by the Secretary of the Treasury on April 10, 1940, to file reports on Form TFR-200 relating to Norwegian and Danish property interests. Any person in the Eleventh Federal Reserve District having any question as to whether a particular transaction is permitted only under license should forward his inquiry with a statement of all appropriate facts and circumstances either to the Federal Reserve Bank of Dallas or to the Secretary of the Treasury, Washington, D. C. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) E XEC U TIVE O R D ER N O . 8 4 0 5 A M E N D M E N T O F E X E C U T IV E O R D E R N O . 8 3 8 9 O F A P R IL 1 0 , 1 9 4 0 , A M E N D IN G E X E C U T IV E O R D E R N O . 6 5 6 0 , D A T E D J A N U A R Y 1 5 , 1 9 3 4 , R E G U L A T IN G T R A N S A C T I O N S IN F O R E IG N E X C H A N G E , T R A N S F E R S O F C R E D IT , A N D T H E E X P O R T O F C O IN A N D C U R R E N C Y By virtue of the authority vested in me by Section 5 (b ) of the Act of October 6, 1917 (40 Stat. 411), as amended, and by virtue of all other authority vested in me, I, FRANKLIN D. ROOSEVELT, PRESI DENT of the UNITED STATES OF AMERICA, do hereby amend Executive Order No. 6560, dated January 15, 1934, regulating transactions in foreign exchange, transfers of credit, and the export o f coin and currency by adding the following sections after Section 8 thereof: “ Section 9. Notwithstanding any of the provisions of Sections 1 to 8, inclusive, of this Order, all of the following are prohibited, except as specifically authorized in regulations or licenses issued by the Secretary of the Treasury pursuant to this Order, if involving property in which Norway or Denmark, or any national thereof, has at any time on or since April 8, 1940, had any interest of any nature whatsoever, direct or indirect, or if involving property in which The Netherlands, Belgium, or Luxembourg, or any national thereof, has at any time on or since May 10, 1940, had any interest of any nature whatsoever, direct or indirect: “ A. All transfers of credit between any banking institutions within the United States; and all transfers o f credit between any banking institution within the United States and any bank ing institution outside the United States (including any principal, agent, home office, branch, or correspondent outside o f the United States, of a banking institution within the United S tates); “ B. All payments by or to any banking institution within the United States; “ C. All transactions in foreign exchange by any person within the United States; “ D. The export or withdrawal from the United States, or the earmarking of gold or silver coin or bullion or currency by any person within the United States; “ E. All transfers, withdrawals or exportations of, or dealings in, any evidences of indebt edness or evidences of ownership o f property by any person within the United States; and “ F. Any transaction for the purpose or which has the effect of evading or avoiding the foregoing prohibitions. “ Section 10. Additional Reports. “ A. Reports under oath shall be filed on such forms, at such time or times and from time to time, and by such persons, as provided in regulations prescribed by the Secretary of the Treasury, with respect to all property of any nature whatsoever of which Norway, Denmark, The Netherlands, Belgium, or Luxembourg, or any national thereof, is or was the owner, or in which Norway, Denmark, The Netherlands, Belgium, or Luxembourg, or any national thereof, has or had an interest of any nature whatsoever, direct or indirect, and with respect to any acquisition, transfer, disposition, or any other dealing in such property. “ B. The Secretary of the Treasury may require the furnishing under oath of additional and supplemental information, including the production of any books of account, contracts, let ters, or other papers with respect to the matters concerning which reports are required to be filed under this section. “ Section 11. Additional Definitions. In addition to the definitions contained in Section 7, the following definitions are prescribed: “ A. The terms ‘Norway’ and ‘Denmark’, respectively, mean the State and the Government of Norway and Denmark on April 8, 1940, the terms ‘The Netherlands’, ‘Belgium’, and ‘Luxem bourg’ , mean the State and the Government of The Netherlands, Belgium, and Luxembourg on May 10, 1940, and any political subdivisions, agencies, and instrumentalities of any o f the fore going, including territories, dependencies and possessions, and all persons acting or purporting to act directly or indirectly for the benefit or on behalf o f any o f the foregoing. The terms ‘Norway’, ‘Denmark’, ‘The Netherlands’, ‘Belgium’ , and ‘Luxembourg’, respectively, shall also include any and all other governments (including political subdivisions, agencies, and instru mentalities thereof and persons acting or purporting to act, directly or indirectly, for the benefit or on behalf thereof) to the extent and only to the extent that such governments exercise or claim to exercise de jure or de facto sovereignty over the area which, on April 8, 1940, consti tuted Norway and Denmark and which on May 10, 1940, constituted The Netherlands, Belgium, and Luxembourg. “ B. The term ‘national’ o f Norway or Denmark shall include any person who has been or whom there is reasonable cause to believe has been domiciled in, or a subject, citizen or resident of Norway or Denmark at any time on or since April 8, 1940, but shall not include any individual domiciled and residing in the United States on April 8, 1940, and shall also include any partnership, association, or other organization, including any corporation organized under the laws of, or which on April 8,1940, had its principal place of business in Norway or Denmark, or which on or after such date has been controlled by, or a substantial part of the stock, shares, bonds, debentures, or other securities of which has been owned or controlled by, directly or indirectly, one or more persons, who have been, or whom there is reasonable cause to believe have been, domiciled in, or the subjects, citizens or residents o f Norway or Denmark at any time on or since April 8, 1940, and all persons acting or purporting to act, directly or indirectly, for the benefit or on behalf of the foregoing. “ C. The term ‘national’ of The Netherlands, Belgium, or Luxembourg shall include any person who has been or whom there is reasonable cause to believe has been domiciled in, or a subject, citizen or resident of The Netherlands, Belgium, or Luxembourg at any time on or since May 10, 1940, but shall not include any individual domiciled and residing in the United States on May 10,1940, and shall also include any partnership, association, or other organization, including any corporation organized under the laws of, or which on May 10, 1940, had its prin cipal place of business in The Netherlands, Belgium, or Luxembourg, or which on or after such date has been controlled by, or a substantial part of the stock, shares, bonds, debentures, or other securities o f which has been owned or controlled by, directly or indirectly, one or m ore persons, who have been, or whom there is reasonable cause to believe have been, domiciled in, or the subjects, citizens, or residents of The Netherlands, Belgium, or Luxembourg, at any tim e on or since May 10, 1940, and all persons acting or purporting to act, directly or indirectly, fo r the benefit or on behalf of the foregoing. “ D. The term ‘banking institution’ as used in Section 9 includes any person engaged pri marily or incidentally in the business of banking, of granting or transferring credits, or o f purchasing or selling foreign exchange or procuring purchasers and sellers thereof, as principal or agent, or any person holding credits for others as a direct or incidental part of his business, or brokers; and, each principal, agent, home office, branch, or correspondent of any person so engaged shall be regarded as a separate ‘banking institution’. “ Section 12. Additional Regulations. The Regulations of November 12, 1984, are hereby m odi fied in so far as they are inconsistent with the provisions of Sections 9 to 11, inclusive, of this Order, and except as so modified are hereby continued in full force and effect. The Secretary of the Treasury is authorized and empowered to prescribe from time to time regulations to carry out the purposes of Sections 9 to 11, inclusive, of this Order as amended, and to provide in such regulations or b y rulings made pursuant thereto, the conditions under which licenses may be granted by such agencies as the Secretary of the Treasury may designate.” FRANKLIN D. ROOSEVELT THE WHITE HOUSE May 10,1940 TRE ASU RY DEPARTM ENT Office o f the Secretary M ay 10, 1940 AMENDMENT TO REGULATIONS O F A P R IL lO , 1 9 4 0 R E L A T IN G T O T R A N S A C T I O N S IN F O R E IG N E X C H A N G E , T R A N S F E R S O F C R E D IT , P A Y M E N T S , A N D T H E E X P O R T O R W IT H D R A W A L O F C O IN , B U L L IO N A N D C U R R E N C Y , A N D T R A N S F E R S , W I T H D R A W A L S A N D E X P O R T A T I O N S O F , O R D E A L IN G S IN , E V ID E N C E S O F IN D E B T E D N E S S O R O W N E R S H IP ; A N D T O REPORTS O F F O R E IG N P R O P E R T Y IN T E R E S T S IN T H E U N IT E D S T A T E S ( * ) (* ) Code o f Federal R egulations, Title 31, M oney and Finance; Treasury Chapter 1, M onetary Offices, P art 130. Section 130.1. Authority for Regulations. These regulations are prescribed and issued under author ity of Section 5(b) o f the Act o f October 6, 1917 (40 Stat. 411), as amended, and Executive Order No. 6560, dated January 15, 1934, as amended.(*) Section 130.2. Definitions. (a) The term “ Order” shall refer to Executive Order No. 6560 o f January 15, 1934, as amended. (b) The term “ Regulations” shall refer to these Regulations. (c) The terms “ property” and “ property interest” or “ property interests” shall include, but not by way of limitation, money, checks, drafts, bullion, bank deposits, savings accounts, any debts, indebtedness or obligations, financial securities commonly dealt in by bankers, brokers, and investment houses, notes, debentures, stocks, bonds, coupons, bankers’ acceptances, mortgages, pledges, liens or other right in the nature o f security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership or indebtedness, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, vendors’ sales agreements, land contracts, real estate and any interest therein, leaseholds, ground rents, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks, copyrights, insurance policies, safe deposit boxes and their contents, annuities, et cetera. (d) Safe deposit boxes shall be deemed to be in the “ custody” not only of all persons having access thereto but also of the lessors o f such boxes whether or not such lessors have access to such boxes. The foregoing shall not in any way be regarded as a limitation upon the meaning of the term “ custody.” (e) For the meaning of other terms reference should be made to the definitions contained in the Order. (*) Section 130.3. Licenses to Engage in Foreign Exchange Transactions, et cetera. Applications for licenses to engage in foreign exchange transactions, transfers of credit, payments, the export or with drawal from the United States or the earmarking o f gold or silver coin or bullion or currency, or the transfer, withdrawal or exportation of, or dealing in, any evidences of indebtedness or evidences of owner ship of property, involving property in which Norway or Denmark, or any national^ thereof, has at any time on or since April 8, 1940, had any interest of any nature whatsoever, direct or indirect, or in which The Netherlands, Belgium, or Luxembourg, or any national thereof, has at any time on or since May 10, 1940, had any interest o f any nature whatsoever, direct or indirect, shall be filed in duplicate with the Federal Reserve bank of the district or the Governor or High Commissioner of the territory or possession of the United States in which the applicant resides or has his principal place o f business or principal office or agency, or with the Federal Reserve Bank o f New York if the applicant has no legal residence or princi pal place of business or principal office or agency in a Federal Reserve district or a territory or possession of the United States. Application forms may be obtained from any Federal Reserve bank, mint or assay office, or the Secretary of the Treasury, Washington, D. C. Applications shall be executed under oath before an officer authorized to administer oaths, or if executed outside o f the United States, before a diplomatic or consular officer of the United States. The applicant shall furnish such further information as shall be requested of him by the Secretary of the Treasury or the Federal Reserve bank or other agency at which the application is filed. Licenses will be issued by the Secretary of the Treasury, acting directly or through any agencies that he may designate, and by the Federal Reserve banks acting in accordance with such rules, regulations, and instructions as the Secretary of the Treasury may from time to time prescribe, in such case or classes o f cases as the Secretary o f the Treasury may determine in rules, regula tions, and instructions prescribed by him. The Federal Reserve bank or other agency at which an appli cation is filed will advise the applicant o f the granting or denial of the license. Licenses for the export or withdrawal of currency or gold or silver coin or bullion or evidences of indebtedness or evidences o f ownership of property, after having been cancelled by the collector o f customs or the postmaster through whom the exportation or withdrawal was made, may be returned by such collector of customs or post master to the licensee. Appropriate forms for applications and licenses will be prescribed by the Secre tary of the Treasury. Licensees may be required to file reports upon the consummation of the transactions. The decision of the Secretary o f the Treasury with respect to the approval or disapproval of an appli cation shall be final. (*) Section 130.4. Reports o f Property Interests of Norway, Denmark, The Netherlands, Belgium, Lux embourg and Nationals Thereof. (a) On or before May 15, 1940, reports shall be filed on Form TFR-100, duly executed under oath, containing the information called for in such form, with respect to all property situated in the United States on April 8, 1940, in which Norway or Denmark, or any national thereof, has at any time or on since April 8, 1940, had any interest of any nature whatsoever, direct or indirect. Within thirty days of the publication o f these Regulations in the Federal Register, reports shall be filed on Form TFR-100, duly executed under oath, containing the information called for in such form, with respect to all property situated in the United States on May 10, 1940, in which The Netherlands, Belgium, or Luxembourg, or any national thereof, has at any time on or since May 10,1940, had any interest of any nature whatsoever, direct or indirect. Such reports shall be filed b y : (1) Every person in the United States directly or indirectly holding, or having title to, or custody, control, or possession of such property, including, without any limitation whatsoever of the foregoing, every partnership, association, or corporation organized under the laws o f the United States or any state or territory of the United States, or having its principal place of business in the United States, in the shares of whose stock or in whose debentures, notes, bonds, coupons, or other obligations or securities Norway or Denmark, or any national thereof, has at any time on or since April 8, 1940, had any interest of any nature whatsoever, direct or indirect, or in which The Nether lands, Belgium, or Luxembourg, or any national thereof, has at any time on or since May 10, 1940, had any interest of any nature whatsoever, direct or indirect; and (2) Every agent or representative in the United States for Norway, Denmark, The Nether lands, Belgium, or Luxembourg, or any national thereof, having any information with respect to any such property. Provided, That no report on Form TFR-100 need be filed where the total value o f all property interests to be reported is less than $250. (b) Reports shall be executed and filed in triplicate with the Federal Reserve bank of the district or the Governor or High Commissioner of the territory or possession of the United States in which the party filing the report resides or has his principal place of business or principal office or agency, or if such party has no legal residence or principal place of business or principal office or agency in a Federal Reserve district or a territory or possession of the United States, then with the Federal Reserve Bank of New York. A report shall be deemed to have been filed when it is received by the proper Federal Reserve bank or other agency or when it is properly addressed and mailed and bears a postmark dated prior to midnight of the date upon which the report is due. The Federal Reserve bank and other agencies shall promptly forward two copies of every report filed with it to the Secretary o f the Treasury. (c) (1) All spaces in the report must be properly filled in. Reports found not to be in proper form , o r lacking in essential details, shall not be deemed to have been filed in compliance with the Order. (2) Where space in the report form does not permit full answers to questions, the informati required may be set forth in supplementary papers incorporated by reference in the report and submitted therewith. Supplementary documents and papers must be referred to in the principal statement in chron ological or other appropriate order and be described in such manner that they can be identified. (d) A separate report under oath must be filed by each person required to file a report except th a t persons holding property jointly may file a joint report. (e) The Secretary of the Treasury may, in his discretion, grant such extensions of time as he deems advisable for the making of any or all of the reports required by these Regulations. (f) Report form TFR-100 may be obtained from any Federal Reserve bank, mint or assay office and the Secretary of the Treasury, Washington, D. C .(*) Section 180.5. Penalties. Section 5 (b) of the A ct of October 6, 1917, as amended by Section 2 of th e Act of March 9, 1983, provides in pa rt: “ . . . whoever willfully violates any o f the provisions of this su b division or o f any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined n ot more than $10,000, or, if a natural person, may be imprisoned for not more than ten years, or b oth ; and any officer, director, or agent of any corporation who knowingly participates in such violation may b e punished by a like fine, imprisonment, or both. As used in this subdivision the term ‘person’ means an individual, partnership, association, or corporation.” (*) Section 130.6. Modification or Revocation. These Regulations and any forms or instructions is s u e d hereunder may be modified or revoked at any tim e.(*) H. MORGENTHAU, JR. Secretary of the Treasury APPROVED; May 10,1940 FRANKLIN D. ROOSEVELT ( * ) Sections 130.1 to 130.6:— Sec. 5 (b ), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; Public R esolution No. 69, 76th 12 U.S.C. 95a; E x. Order 6560, Jan. 15, 1934; E x. O rder 8389, A p ril 10, 1940; Ex. Order 8405, M ay 10, 1940. Congress-
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