BASIC (01-02)

A. Policy — Treasury-Barred Countries

1. General

An SVB individual cannot meet SVB qualification requirements during any month throughout which he or she:

• is not a citizen or national of the United States, and

• resides in a country to which payments to residents of that country are withheld by the Treasury Department (TD) under section 3329 of title 31, U.S. Code.

As explained in VB 01201.015, TD regulations currently prohibit sending payments to, or on behalf of, any beneficiary residing in Cuba or North Korea.

2. SVB Beneficiary is a U.S. Citizen or National

A U.S. citizen or national cannot be denied SVB on the basis of residence in a Treasury-barred country. If he or she meets all qualification requirements, SVB entitlement can be established but no benefits will be paid as long as he or she remains in a Treasury-barred country. The withholding of SVB in this situation is referred to as an SVB stop-payment event and not an SVB suspension event (see VB 01503.001B. for definitions). As a stop-payment event, SVB will not terminate after 12 consecutive months of nonpayment. Withheld benefits will accrue and may be paid when the SVB beneficiary leaves the Treasury-barred country.

3. SVB Beneficiary is Not a U.S. Citizen or National

Residence in a Treasury-barred country is an SVB disqualifier, as explained in VB 00205.200, and will result in the denial or suspension of SVB. Suspension of SVB will be effective with the first full calendar month during which the SVB beneficiary resides in a Treasury-barred country. Unpaid SVB will not accrue for months of residence in a Treasury-barred country, and SVB will terminate beginning the 13^th consecutive month after the suspension is effective.

B. Policy — SSA-Restricted Countries

SVB payments are prohibited to individuals residing in the following SSA-restricted countries as explained in VB 01201.015:

• Azerbaijan*

• Belarus*

• Kazakstan*

• Krygyzstan*

• Moldova*

• Tajikistan*

• Turkmenistan*

• Ukraine*

• Uzbekistan*

  (*former Republic of the Soviet Union)

Residence in one of the above countries does not preclude SVB qualification. Residence in one of these countries is considered a stop-payment event, and although SVB payments are not payable, entitlement will not terminate after 12 consecutive months of nonpayment. Instead, SVB will accrue and may be payable when (if) the SVB beneficiary leaves the SSA-restricted country.

EXAMPLE: Mr. Ramos filed for SVB on May 16, 2000 while residing in Florida. Mr. Ramos met all SVB qualification requirements and was sent a notice of qualification on May 25, 2000. The notice advised Mr. Ramos that in order to become entitled to SVB he must establish residency outside the United States within four calendar months of the notice (i.e., no later than September 30, 2000). Mr. Ramos notifies SSA that he is going to reside in Azerbaijan beginning July 25, 2001. He submits evidence of this residence entitling him to SVB beginning August 2001; however, payments cannot be made while Mr. Ramos is in Azerbaijan.