45098 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 500, 501, 505, 515, 535,

536, 550, 560, 575, 585, 590, 595, and

596

Reporting and Procedures

Regulations: Consolidation of

Information Collections; Annual

Reports on Blocked Assets and

Retained Transfers; Reports on

Rejected Transfers; Reports on

Litigation; Procedure for Releasing

Funds Believed to Have Been Blocked

Due to Mistaken Identity; Procedure

For Removal From the Lists of Blocked

Persons and Vessels

AGENCY: Office of Foreign Assets

Control, Treasury.

ACTION: Final rule; amendments.

SUMMARY: The Office of Foreign Assets

Control (‘‘OFAC’’) is issuing the

Reporting and Procedures Regulations.

This new part simplifies—by

consolidating and standardizing in a

single part—common provisions on

collections of information in existing

OFAC regulations. Those collections are

eliminated from the individual parts of

31 CFR chapter V. This final rule

includes an initial and annual

requirement to report on blocked assets

or retained funds transfers—as well as

periodic reports on funds transfers

rejected by U.S. financial institutions—

for administrative and foreign policy

formulation purposes. The rule also

requires reports on U.S. litigation and

other dispute resolution proceedings

where the proceedings may affect

blocked assets or funds retained by

banks that have stopped violative

transfers. In addition, new procedures

are set forth for persons seeking the

unblocking of funds they believe have

been blocked due to mistaken identity,

or seeking administrative review of their

designation or that of a vessel as

blocked. Finally, the reporting

requirements and licensing and other

procedures of the new part are made

applicable to transactions that have

become subject to economic sanctions

programs for which implementation and

administration are delegated to the

Office of Foreign Assets Control. The

final rule also makes conforming

amendments and technical corrections

to the various parts of 31 CFR chapter

V.

EFFECTIVE DATE: August 25, 1997.

FOR FURTHER INFORMATION CONTACT:

Daniel A. Yorks, Blocked Assets

Division (tel.: 202/622–2440); Dennis P.

Wood, Chief, Compliance Programs

Division (tel.: 202/622–2490); or

William B. Hoffman, Chief Counsel (tel.:

202/622–2410), Office of Foreign Assets

Control, Department of the Treasury,

Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

This document is available as an

electronic file on The Federal Bulletin

Board the day of publication in the

Federal Register. By modem, dial 202/

512–1387 and type ‘‘/GO FAC,’’ or call

202/512–1530 for disk or paper copies.

This file is available for downloading

without charge in WordPerfect 5.1,

ASCII, and Adobe Acrobat TM readable

(*.PDF) formats. For Internet access, the

address for use with the World Wide

Web (Home Page), Telnet, or FTP

protocol is: fedbbs.access.gpo.gov. The

document is also accessible for

downloading in ASCII format without

charge from Treasury’s Electronic

Library (‘‘TEL’’) in the ‘‘Business, Trade

and Labor Mall’’ of the FedWorld

bulletin board. By modem, dial 703/

321–3339, and select the self-extracting

file T11FR00.EXE in TEL. For Internet

access, use one of the following

protocols: Telnet = fedworld.gov

(192.239.93.3); World Wide Web (Home

Page) = http://www.fedworld.gov; FTP

= ftp.fedworld.gov (192.239.92.205).

Additional information concerning the

programs of the Office of Foreign Assets

Control is available for downloading

from the Office’s Internet Home Page:

http://www.ustreas.gov/treasury/

services/fac/fac.html, or in fax form

through the Office’s 24-hour fax-ondemand service: call 202/622–0077

using a fax machine, fax modem, or

(within the United States) a touch-tone

telephone.

Background

The Office of Foreign Assets Control

(‘‘OFAC’’) is adding a new part 501 to

31 CFR chapter V (‘‘chapter V’’),

consolidating and standardizing general

information collections and license

application and other procedures

currently authorized under the

Paperwork Reduction Act of 1995 (the

‘‘PRA’’) and contained in the Foreign

Assets Control Regulations (part 500),

Regulations Prohibiting Transactions

Involving the Shipment of Certain

Merchandise Between Foreign Countries

(part 505), Cuban Assets Control

Regulations (part 515), Iranian Assets

Control Regulations (part 535),

Narcotics Trafficking Sanctions

Regulations (part 536), Libyan Sanctions

Regulations (part 550), Iranian

Transactions Regulations (part 560),

Iraqi Sanctions Regulations (part 575),

Federal Republic of Yugoslavia (Serbia

& Montenegro) and Bosnian SerbControlled Areas of the Republic of

Bosnia and Herzegovina Sanctions

Regulations (part 585), Unita (Angola)

Sanctions Regulations (part 590),

Terrorism Sanctions Regulations (part

595), and Terrorism List Governments

Sanctions Regulations (part 596). Part

501 also makes these information

collections and licensing and other

procedures applicable to transactions

that have become subject to economic

sanctions programs for which

implementation and administration are

delegated to OFAC, but for which

implementing regulations have not yet

been issued. This is intended to provide

standardized procedures for requesting

licenses and other actions, as well as

common recordkeeping and reporting

requirements, that will be familiar to the

public and immediately available upon

the imposition of future sanctions

programs delegated to OFAC for

implementation.

Section 501.601 consolidates OFAC

recordkeeping requirements and

standardizes record retention periods at

5 years from the date of a transaction

subject to the prohibitions in chapter V

and 5 years from the date property

blocked or retained (see § 596.504(b) of

part 596) under chapter V is unblocked

or released. Section 501.602

consolidates provisions requiring

reports at OFAC’s demand concerning

transactions or property subject to the

prohibitions in chapter V. These

provisions were previously found in

subpart F of the individual parts of

chapter V.

New § 501.603 establishes a

comprehensive reporting system for

property blocked pursuant to chapter V

or retained pursuant to § 596.504(b) of

the Terrorism List Governments

Sanctions Regulations, 31 CFR part 596

(the ‘‘TLGSR’’). Section 501.603

imposes an affirmative obligation to

report information regarding such

property within 10 days of the date the

property is blocked or funds retained.

Reports must thereafter be filed on a

cumulative and comprehensive annual

basis with respect to blocked property

or retained funds. The reporting

requirement with respect to blocked

property applies to any form of tangible

or intangible ‘‘property’’ (as defined in

the individual parts contained in

chapter V) that is blocked pursuant to

chapter V. The first annual report is due

on September 30, 1997.

The initial and annual reporting

requirement in § 501.603 replaces the

current requirements contained in

subparts E and F of the individual parts

of chapter V for registration by any
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45099

person, including financial institutions

(which term includes the terms

‘‘banking institution’’ in parts 500, 515,

and 550, ‘‘depository institution’’ in part

515, ‘‘domestic bank’’ in parts 500, 515,

535, and 550, ‘‘financial institution’’ in

part 596, ‘‘United States depository

institution’’ in part 560, and ‘‘U.S.

financial institution’’ in parts 536, 575,

585, and 595), of blocked property with

OFAC and for designating a person to

contact for information concerning

blocked property. The annual report

form (Form TDF 90–22.50) is available

by calling the fax-on-demand service

maintained by the Office of Foreign

Assets Control at 202/622–0077, or by

downloading the form from the ‘‘OFAC

Press Releases and Miscellaneous

Documents’’ file library (‘‘FAClMISC’’)

located on the Government Printing

Office’s Federal Bulletin Board Online

via GPO Access (Internet site: http://

fedbbs.access.gpo.gov/libs/

faclmisc.htm). The report form is also

added as an appendix to this document,

but will not be published in chapter V.

OFAC invites and will consider on a

case-by-case basis requests to submit the

information required in the annual

report in alterative formats. The

reporting requirements of § 501.603 are

necessary to monitor compliance with

regulatory requirements, to address

issues involving U.S. government and

private claims, and to support related

diplomatic negotiations.

New § 501.604 requires U.S. financial

institutions to report funds transfers that

are rejected where the funds themselves

are not blocked under chapter V, but

where the processing of the transfer

would nonetheless facilitate an

underlying transaction that is prohibited

under other provisions contained in

chapter V. Examples of instances

wherein funds are rejected and this

reporting requirement is applicable

include funds transfer instructions (1)

referencing a blocked vessel in the

absence of references to blocked parties

or financial institutions, (2) sending

funds to a person in Iraq, (3) transferring

unlicensed gifts or charitable donations

from the Government of Syria or Sudan

to a U.S. person, (4) crediting Iranian

accounts on the books of a U.S. financial

institution, and (5) making

unauthorized transfers from U.S.

persons to Iran or the Government of

Iran. This reporting requirement is

necessary to monitor compliance with

regulatory requirements and replaces

the current requirement in § 596.603 of

the TLGSR that financial institutions

report rejected funds transfers pursuant

to that section.

New § 501.605 requires that parties

involved in litigation, arbitration, or

other binding alternative dispute

resolution proceedings in the United

States on behalf of or against persons

whose property is blocked or required to

be retained under chapter V—or where

the outcome of any proceeding may

affect blocked property or retained

funds—provide notice of the

proceedings to OFAC, as well as copies

of certain documents pertaining to the

proceedings. They must also notify

OFAC of certain judicial or similar

actions that may affect blocked property

or retained funds, and notify the court

or other adjudicatory body of applicable

regulatory restrictions on transfers of

blocked property or retained funds. This

reporting requirement is necessary to

ensure that blocked property or retained

funds are not intentionally or

inadvertently transferred by judicial or

similar action except as authorized by

OFAC. This requirement also replaces

identical reporting requirements

previously contained in specific

licenses authorizing payment of

attorneys’ fees by blocked persons from

unblocked sources.

New § 501.606 makes these reporting

requirements in subpart C of part 501

applicable to transactions subject to

economic sanctions programs for which

implementation and administration

have been delegated to the Office of

Foreign Assets Control.

Sections 501.801–501.805 include

most of the material previously

contained in subpart H of the individual

parts of chapter V governing licensing

procedures and procedures relating to

administrative decisions; amendments,

modifications, or revocations of

licenses; rulemaking; and requests for

documents pursuant to the Freedom of

Information and Privacy Acts.

Section 501.801 provides procedures

for requesting specific licenses,

including application procedures under

those statements of licensing policy

contained in subpart E of the individual

parts in chapter V, which note the

availability of specific licenses for

particular categories of transactions but

do not establish requirements for the

submission of specific information.

Information collection provisions that

require production of specified

documentation unique to a given

general license or statement of licensing

policy will continue to be authorized

separately under the PRA. Examples

include statements of licensing policy

contained in subpart E of the individual

parts in chapter V that require the

submission of particular, specified

documents and/or information in

license applications; quarterly reports

by U.S. persons on certain Iran-related

oil transactions by foreign affiliates

pursuant to § 560.603 of chapter V; and

censuses of blocked property and claims

previously conducted under sanctions

programs administered against

Cambodia, Vietnam, and Libya.

This final rule institutes new

administrative procedures in § 501.806

for requesting the unblocking of funds

believed to have been blocked due to

mistaken identity. New administrative

procedures are also set forth in

§ 501.807 for persons seeking

administrative reconsideration of their

designation or that of a vessel as

blocked, or who wish to assert that the

circumstances resulting in the

designation are no longer applicable.

Denial of an application for removal

from the list of designees subject to the

applicable prohibitions of chapter V (see

appendices A, B, and C to chapter V)

constitutes final agency action for

purposes of judicial review. These

procedures standardize and codify

collections of information for these

purposes that were previously made by

individual requests for specific licenses.

New § 501.808 makes these license

application and other procedures in

subpart D of part 501 applicable to

transactions that have become subject to

economic sanctions programs for which

implementation and administration are

delegated to the Office of Foreign Assets

Control, but for which implementing

regulations have not yet been issued.

This final rule also makes a technical

correction to the civil penalty

provisions of each affected sanctions

program to note that the Civil Penalties

Inflation Adjustment Act of 1990, as

amended by the Debt Collection

Improvement Act of 1996, required

adjustments to civil penalties, but did

not ‘‘amend’’ the underlying statutes

authorizing imposition of those

penalties. These changes are made to

§ 701(a) of parts 500, 515, 535, 550, 560,

575, 585, 590, and 595.

Since this final rule involves a foreign

affairs function, Executive Order 12886

and the provisions of the Administrative

Procedure Act (5 U.S.C. 553) requiring

notice of proposed rulemaking,

opportunity for public participation,

and delay in effective date are

inapplicable. Because no notice of

proposed rulemaking is required for this

rule, the Regulatory Flexibility Act (5

U.S.C. 601–612) does not apply.

Paperwork Reduction Act

The Reporting and Procedures

Regulations are being issued without

prior notice and public comment

procedure pursuant to the

Administrative Procedure Act (5 U.S.C.

553). Pursuant to the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507),
45100 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

the collections of information contained

in the Regulations have been submitted

to and approved by the Office of

Management and Budget (‘‘OMB’’)

pending public comment, and have

been assigned control number 1505–

0164. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

Collections of information previously

authorized are contained in §§ 501.601–

501.602 and 501.801–501.805. Section

501.601 relates to the maintenance of

records and § 501.602 relates to OFAC

demands for information. These

provisions were previously contained in

subpart F of the individual parts of

chapter V. Sections 501.801–501.805

relate to licensing, decisionmaking,

amendment, modification or revocation,

rulemaking, and document request

procedures previously set forth in

subpart H of the individual parts of

chapter V.

The new collections of information

are contained in §§ 501.603, 501.604,

501.605, 501.806, and 501.807. Section

501.603 imposes reporting requirements

pertaining to blocked assets and

retained funds transfers. This

information is required by OFAC to

monitor compliance with regulatory

requirements, to support diplomatic

negotiations concerning the targets of

sanctions, and to support settlement

negotiations addressing U.S. claims.

Section 501.604 requires the filing of

reports for compliance purposes by U.S.

financial institutions where a funds

transfer is not required to be blocked but

is rejected because the underlying

transaction is otherwise prohibited.

Section 501.605 requires reporting of

information pertaining to litigation,

arbitration, and other binding

alternative dispute resolution

proceedings in the United States to

prevent the intentional or inadvertent

transfer through such proceedings of

blocked property or retained funds.

Section 501.806 sets forth the

procedures to be followed by a person

seeking to have funds released at a

financial institution if the person

believes that the funds were blocked

due to mistaken identity. Section

501.807 sets forth the procedures to be

followed by persons seeking

administrative reconsideration of their

designation or that of a vessel as

blocked, or who wish to assert that the

circumstances resulting in the

designation are no longer applicable.

The likely respondents and

recordkeepers affected by the

information collections contained in

part 501 are financial institutions,

business organizations, and legal

representatives.

The estimated total annual reporting

and/or recordkeeping burden: 10,000

hours. The estimated annual burden per

respondent/record keeper varies from

thirty minutes to 10 hours, depending

on individual circumstances, with an

estimated average of 1.25 hours.

Estimated number of respondents and/

or record keepers: 8,000. Estimated

annual frequency of responses: 1–12.

Comments are invited on: (a) Whether

these new or restated collections of

information are necessary for the proper

performance of the functions of the

agency, including whether the

information has practical utility; (b) the

accuracy of the agency’s estimate of the

burden of the collections of information;

(c) ways to enhance the quality, utility,

and clarity of the information to be

collected; (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information

technology; and (e) estimates of capital

or start-up costs and costs of operation,

maintenance, and purchase of services

to provide information.

Comments concerning the above

information, the accuracy of estimated

average annual burden, and suggestions

for reducing this burden should be

directed to OMB, Paperwork Reduction

Project, control number 1505–0164,

Washington, DC ′20503, with a copy to

the Office of Foreign Assets Control,

Department of the Treasury, 1500

Pennsylvania Ave., NW—Annex,

Washington, D.C. 20220. Any such

comments should be submitted not later

than October 24, 1997. Comments on

aspects of this final rule other than

those involving collections of

information subject to the PRA should

not be sent to OMB.

List of Subjects

31 CFR Part 500

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Cambodia, Exports, Finance,

Foreign claims, Foreign investment in

the United States, Foreign trade,

Imports, Information and informational

materials, International organizations,

North Korea, Penalties, Publications,

Reporting and recordkeeping

requirements, Securities, Services,

Specially designated nationals,

Terrorism, Travel restrictions, Trusts

and estates, Vietnam.

31 CFR Part 501

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Foreign trade, Reporting and

recordkeeping requirements

31 CFR Part 505

Administrative practice and

procedure, Banks, banking, COCOM,

Communist countries, Exports, Finance,

Foreign trade, Penalties, Reporting and

recordkeeping requirements.

31 CFR Part 515

Administrative practice and

procedure, Air carriers, Banks, banking,

Blocking of assets, Cuba, Currency,

Estates, Exports, Foreign investment in

the United States, Foreign trade,

Imports, Informational materials,

Penalties, Publications, Reporting and

recordkeeping requirements, Securities,

Shipping, Specially designated

nationals, Terrorism, Travel restrictions,

Trusts and trustees, Vessels.

31 CFR Part 535

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Currency, Foreign investment in

the United States, Iran, Penalties,

Reporting and recordkeeping

requirements, Securities, Terrorism.

31 CFR Part 536

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Narcotics trafficking, Penalties,

Reporting and recordkeeping

requirements, Specially designated

narcotics traffickers, Transfer of assets.

31 CFR Part 550

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Exports, Foreign investment,

Foreign trade, Government of Libya,

Imports, Libya, Loans, Penalties,

Reporting and recordkeeping

requirements, Securities, Services,

Specially designated nationals,

Terrorism, Travel restrictions.

31 CFR Part 560

Administrative practice and

procedure, Agriculture commodities,

Banks, banking, Exports, Foreign trade,

Imports, Information, Investments, Iran,

Loans, Penalties, Reporting and

recordkeeping requirements, Services,

Specially designated nationals,

Terrorism, Transportation.

31 CFR Part 575

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Exports, Foreign trade,

Humanitarian aid, Imports, Iraq, Oil

imports, Penalties, Petroleum,

Petroleum products, Reporting and

recordkeeping requirements, Specially

designated nationals, Terrorism, Travel

restrictions.
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45101

31 CFR Part 585

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Bosnian Serbs, Exports, Federal

Republic of Yugoslavia (Serbia and

Montenegro), Foreign trade, Imports,

Intellectual property, Loans, Penalties,

Reporting and recordkeeping

requirements, Securities, Services,

Shipping, Telecommunications,

Transfer of assets, Vessels.

31 CFR Part 590

Administrative practice and

procedure, Angola, Exports, Foreign

trade, National Union for the Total

Independence of Angola, Penalties,

Reporting and recordkeeping

requirements, Shipping, UNITA,

Vessels.

31 CFR Part 595

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Penalties, Reporting and

recordkeeping requirements, Specially

designated terrorists, Terrorism,

Transfer of assets.

31 CFR Part 596

Administrative practice and

procedure, Banks, banking, Cuba,

Penalties, Iran, Iraq, Libya, North Korea,

Reporting and recordkeeping

requirements, Sudan, Syria, Terrorism,

Transfer of assets.

For the reasons set forth in the

preamble, 31 CFR chapter V is amended

as follows:

PART 500—FOREIGN ASSETS

CONTROL REGULATIONS

1. The authority citation for part 500

is revised to read as follows:

Authority: 18 U.S.C. 2332d; 31 U.S.C.

321(b); 50 U.S.C. App. 1–44; Pub. L. 101–410,

104 Stat. 890 (28 U.S.C. 2461 note); E.O.

9193, 7 FR 5205, 3 CFR, 1938–1943 Comp.,

p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943–

1948 Comp., p. 748.

1a. The heading of subpart A is

revised to read as follows:

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 500.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 500.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 500.201 is amended by

adding new paragraph (e) to read as

follows:

§ 500.201 Transactions involving

designated foreign countries or their

nationals; effective date.

* * * * *

(e) When a transaction results in the

blocking of funds at a banking

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—General Definitions

4. The note at the end of § 500.306 is

amended by adding a sentence to the

end of the note to read as follows:

§ 500.306 Specially designated national.

* * * * *

Note to § 500.306: * * * Section 501.807 of

this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation or that of

a vessel as blocked, or who wish to assert

that the circumstances resulting in the

designation are no longer applicable.

Subpart E—Licenses, Authorizations

and Statements of Licensing Policy

5. Section 500.508 is amended by

removing paragraph (f) and by adding a

note to the end of the section to read as

follows:

§ 500.508 Payments to blocked accounts

in domestic banks.

* * * * *

Note to § 500.508: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 500.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 500.701 [Amended]

7. Section 500.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

Subpart H—Procedures

8. Section 500.801 is revised to read

as follows:

§ 500.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 500.802—500.806 and 500.809

[Removed]

8a. Sections 500.802 through 500.806

and 500.809 are removed.

§§ 500.807 and 500.808 [Redesignated as

§§ 500.802 and 500.803]

8b. Sections 500.807 and 500.808 are

redesignated as §§ 500.802 and 500.803,

respectively.

Subpart I—Miscellaneous Provisions

9. Section 500.901 is revised to read

as follows:

§ 500.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

10. Part 501 is added to read as

follows:

PART 501—REPORTING AND

PROCEDURES REGULATIONS

Subpart A—Relation of This Part to Other

Parts in This Chapter

Sec.

501.101 Relation of this part to other parts

in this chapter.

Subpart B—Definitions

501.301 Definitions.

Subpart C—Reports

501.601 Records and recordkeeping

requirements.

501.602 Reports to be furnished on

demand.

501.603 Reports on blocked property.

501.604 Reports by U.S. financial

institutions on rejected funds transfers.

501.605 Reports on litigation, arbitration,

and dispute resolution proceedings.
45102 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

501.606 Reporting and recordkeeping

requirements applicable to economic

sanctions programs.

Subpart D—Procedures

501.801 Licensing.

501.802 Decisions.

501.803 Amendment, modification, or

revocation.

501.804 Rulemaking.

501.805 Rules governing availability of

information.

501.806 Procedures for unblocking funds

believed to have been blocked due to

mistaken identity.

501.807 Procedures governing removal of

names from appendices A, B, and C to

this chapter.

501.808 License application and other

procedures applicable to economic

sanctions programs.

Subpart E—Paperwork Reduction Act

501.901 Paperwork Reduction Act notice.

Authority: 22 U.S.C. 287c; 31 U.S.C.

321(b); 50 U.S.C. 1701–1706; 50 U.S.C. App.

1–44.

Subpart A—Relation of This Part to

Other Parts in This Chapter

§ 501.101 Relation of this part to other

parts in this chapter.

This part sets forth standard reporting

and recordkeeping requirements and

license application and other

procedures governing transactions

regulated pursuant to other parts

codified in this chapter, as well as to

economic sanctions programs for which

implementation and administration are

delegated to the Office of Foreign Assets

Control. Substantive prohibitions and

policies particular to each economic

sanctions program are not contained in

this part but are set forth in the

particular part of this chapter dedicated

to that program, or, in the case of

economic sanctions programs not yet

implemented in regulations, in the

applicable executive order or other

authority. License application

procedures and reporting requirements

set forth in this part govern transactions

undertaken pursuant to general or

specific licenses, the criteria for which

are set forth in subpart E of the

individual parts in this chapter.

Statements of licensing policy contained

in subpart E of the individual parts in

this chapter, however, may contain

additional information collection

provisions that require production of

specified documentation unique to a

given general license or statement of

licensing policy.

Subpart B—Definitions

§ 501.301 Definitions.

Definitions of terms used in this part

are found in subpart C of the part within

this chapter applicable to the relevant

application, record, report, procedure or

transaction. In the case of economic

sanctions programs for which

implementation and administration are

delegated to the Office of Foreign Assets

Control but for which regulations have

not yet been issued, the definitions of

terms in this part are governed by

definitions contained in the

implementing statute or Executive

order.

Subpart C—Reports

§ 501.601 Records and recordkeeping

requirements.

Except as otherwise provided, every

person engaging in any transaction

subject to the provisions of this chapter

shall keep a full and accurate record of

each such transaction engaged in,

regardless of whether such transaction

is effected pursuant to license or

otherwise, and such record shall be

available for examination for at least 5

years after the date of such transaction.

Except as otherwise provided, every

person holding property blocked

pursuant to the provisions of this

chapter or funds transfers retained

pursuant to § 596.504(b) of this chapter

shall keep a full and accurate record of

such property, and such record shall be

available for examination for the period

of time that such property is blocked

and for at least 5 years after the date

such property is unblocked.

§ 501.602 Reports to be furnished on

demand.

Every person is required to furnish

under oath, in the form of reports or

otherwise, from time to time and at any

time as may be required by the Director,

Office of Foreign Assets Control,

complete information relative to any

transaction, regardless of whether such

transaction is effected pursuant to

license or otherwise, subject to the

provisions of this chapter or relative to

any property in which any foreign

country or any national thereof has any

interest of any nature whatsoever, direct

or indirect. The Director may require

that such reports include the production

of any books of account, contracts,

letters or other papers connected with

any such transaction or property, in the

custody or control of the persons

required to make such reports. Reports

with respect to transactions may be

required either before or after such

transactions are completed. The Director

may, through any person or agency,

conduct investigations, hold hearings,

administer oaths, examine witnesses,

receive evidence, take depositions, and

require by subpoena the attendance and

testimony of witnesses and the

production of all books, papers, and

documents relating to any matter under

investigation, regardless of whether any

report has been required or filed in

connection therewith.

§ 501.603 Reports on blocked property.

(a) Who must report—(1) Holders of

blocked property. Any person, including

a financial institution, holding property

blocked pursuant to this chapter must

report. The requirement includes

financial institutions that receive and

block payments or transfers. This

requirement is mandatory and applies to

all U.S. persons (or persons subject to

U.S. jurisdiction in the case of parts 500

and 515 of this chapter) who have in

their possession or control any property

or interests in property blocked

pursuant to this chapter.

(2) Primary responsibility to report. A

report may be filed on behalf of a holder

of blocked property by an attorney,

agent, or other person. Primary

responsibility for reporting blocked

property, however, rests with the actual

holder of the property, or the person

exercising control over property located

outside the United States, with the

following exceptions: primary

responsibility for reporting any trust

assets rest with the trustee; and primary

responsibility for reporting real property

rests with any U.S. co-owner, legal

representative, agent, or property

manager in the United States. No person

is excused from filing a report by reason

of the fact that another person has

submitted a report with regard to the

same property, except upon actual

knowledge of the report filed by such

other person. Reports filed are regarded

as privileged and confidential.

(3) Financial institutions. For

purposes of this section, the term

‘‘financial institution’’ shall include a

banking institution, domestic bank,

United States depository institution,

financial institution, or U.S. financial

institution, as those terms are defined in

the applicable part of this chapter.

(b) What must be reported—(1) Initial

reports—(i) When reports are due.

Reports are required to be filed within

10 business days from the date that

property becomes blocked. This

reporting requirement includes

payments or transfers that are received

and blocked by financial institutions.

(ii) Contents of reports. Initial reports

on blocked property shall describe the

owner or account party, the property, its

location, any existing or new account

number or similar reference necessary to

identify the property, actual or

estimated value and the date it was

blocked, and shall include the name and
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45103

address of the holder, along with the

name and telephone number of a

contact person from whom compliance

information can be obtained. If the

report is filed by a financial institution

and involves the receipt of a payment or

transfer of funds which are blocked by

the financial institution, the report shall

also include a photocopy of the

payment or transfer instructions

received and shall confirm that the

payment has been deposited into a new

or existing blocked account which is

labeled as such and is established in the

name of, or contains a means of clearly

identifying the interest of, the

individual or entity subject to blocking

pursuant to the requirements of this

chapter.

(2) Annual reports—(i) When reports

are due. A comprehensive report on all

blocked property held as of June 30 of

the current year shall be filed annually

by September 30. The first annual report

is due September 30, 1997.

(ii) Contents of reports. Annual

reports shall be filed using Form TDF

90–22.50, Annual Report of Blocked

Property. Copies of Form TDF 90–22.50

may be obtained directly from the Office

of Foreign Assets Control, by calling the

fax-on-demand service maintained by

the Office of Foreign Assets Control at

202/622–0077, or by downloading the

form from the ‘‘OFAC Press Releases

and Miscellaneous Documents’’ file

library (‘‘FAClMISC’’) located on the

Government Printing Office’s Federal

Bulletin Board Online via GPO Access

(Internet site: http://

fedbbs.access.gpo.gov/libs/

faclmisc.htm). Photocopies of the

report form may be used. Requests to

submit the information required on

Form TDF 90–22.50 in an alternative

format developed by the reporter are

invited and will be considered by the

Office of Foreign Assets Control on a

case-by-case basis. A copy of reports

filed using form TDF 90–22.50 or in

alternative formats must be retained for

the reporter’s records.

(c) Reports on retained funds

pursuant to § 596.504(b) of this chapter.

The reporting requirements set forth in

this section are applicable to any

financial institution retaining funds

pursuant to § 596.504(b) of this chapter,

except that the account name shall

reflect the name of the person whose

interest required retention of the funds.

(d) Where to report. All reports must

be filed with the Office of Foreign

Assets Control, Compliance Programs

Division, U.S. Treasury Department,

1500 Pennsylvania Avenue NW—

Annex, Washington, DC 20220.

§ 501.604 Reports by U.S. financial

institutions on rejected funds transfers.

(a) Who must report. Any financial

institution that rejects a funds transfer

where the funds are not blocked under

the provisions of this chapter, but where

processing the transfer would

nonetheless violate, or facilitate an

underlying transaction that is prohibited

under, other provisions contained in

this chapter, must report. For purposes

of this section, the term ‘‘financial

institution’’ shall include a banking

institution, depository institution or

United States depository institution,

domestic bank, financial institution or

U.S. financial institution, as those terms

are defined in the applicable part of this

chapter.

(b) Rejected transfers. Examples of

transactions involving rejected funds

transfers include funds transfer

instructions:

(1) Referencing a blocked vessel but

where none of the parties or financial

institutions involved in the transaction

is a blocked person;

(2) Sending funds to a person in Iraq;

(3) Transferring unlicensed gifts or

charitable donations from the

Government of Syria or Sudan to a U.S.

person;

(4) Crediting Iranian accounts on the

books of a U.S. financial institution; and

(5) Making unauthorized transfers

from U.S. persons to Iran or the

Government of Iran.

(c) When reports are due. Reports are

required to be filed within 10 business

days by any financial institution

rejecting instructions to execute

payments or transfers involving

underlying transactions prohibited by

the provisions of this chapter.

(d) What must be reported. The report

shall include the name and address of

the transferee financial institution, the

date of the transfer, the amount of the

payment transfer, and a photocopy of

the payment or transfer instructions

received, and shall state the basis for the

rejection of the transfer instructions.

The report shall also provide the name

and telephone number of a contact

person at the transferee financial

institution from whom compliance

information may be obtained.

(e) Where to report. Reports must be

filed with the Office of Foreign Assets

Control, Compliance Programs Division,

U.S. Treasury Department, 1500

Pennsylvania Avenue NW—Annex,

Washington, DC 20220.

§ 501.605 Reports on litigation, arbitration,

and dispute resolution proceedings.

(a) U.S. persons (or persons subject to

the jurisdiction of the United States in

the case of parts 500 and 515 of this

chapter) participating in litigation,

arbitration, or other binding alternative

dispute resolution proceedings in the

United States on behalf of or against

persons whose property or interests in

property are blocked or whose funds

have been retained pursuant to

§ 596.504(b) of this chapter, or when the

outcome of any proceeding may affect

blocked property or retained funds,

must:

(1) Provide notice of such proceedings

upon their commencement or upon

submission or receipt of documents

bringing the proceedings within the

terms of the introductory text to this

paragraph (a);

(2) Submit copies of all pleadings,

motions, memoranda, exhibits,

stipulations, correspondence, and

proposed orders or judgments

(including any proposed final judgment

or default judgment) submitted to the

court or other adjudicatory body, and all

orders, decisions, opinions, or

memoranda issued by the court, to the

Chief Counsel, Office of Foreign Assets

Control, U.S. Department of the

Treasury, 1500 Pennsylvania Avenue,

NW—Annex, Washington, DC 20220,

within 10 days of filing, submission or

issuance. This paragraph (a)(2) shall not

apply to discovery requests or

responses, documents filed under seal,

or requests for procedural action not

seeking action dispositive of the

proceedings (such as requests for

extension of time to file); and

(3) Report by immediate facsimile

transmission to the Chief Counsel,

Office of Foreign Assets Control, at

facsimile number 202/622–1911, the

scheduling of any hearing or status

conference in the proceedings whenever

it appears that the court or other

adjudicatory body may issue an order or

judgment in the proceedings (including

a final judgment or default judgment) or

is considering or may decide any

pending request dispositive of the

merits of the proceedings or of any

claim raised in the proceedings.

(b) The reporting requirements of

paragraph (a) of this section do not

apply to proceedings to which the

Office of Foreign Assets Control is a

party.

(c) Persons initiating proceedings

subject to the reporting requirements of

this section must notify the court or

other adjudicatory body of the

restrictions set forth under the

applicable part in this chapter governing

the transfer of blocked property or funds

retained pursuant to § 596.504(b) of this

chapter, including the prohibition on

any unlicensed attachment, judgment,

decree, lien, execution, garnishment or

other judicial process with respect to
45104 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

any property in which, on or after the

applicable effective date, there existed

an interest of any person whose

property and property interests were

subject to blocking pursuant to this

chapter or were subject to retention

pursuant to § 596.504(b) of this chapter.

§ 501.606 Reporting and recordkeeping

requirements applicable to economic

sanctions programs.

The reporting and recordkeeping

requirements set forth in this subpart

are applicable to economic sanctions

programs for which implementation and

administration have been delegated to

the Office of Foreign Assets Control.

Subpart D—Procedures

§ 501.801 Licensing.

(a) General licenses. General licenses

have been issued authorizing under

appropriate terms and conditions

certain types of transactions which are

subject to the prohibitions contained in

this chapter. All such licenses are set

forth in subpart E of each part contained

in this chapter. General licenses may

also be issued authorizing under

appropriate terms and conditions

certain types of transactions which are

subject to prohibitions contained in

economic sanctions programs the

implementation and administration of

which have been delegated to the

Director of the Office of Foreign Assets

Control but which are not yet codified

in this chapter. It is the policy of the

Office of Foreign Assets Control not to

grant applications for specific licenses

authorizing transactions to which the

provisions of an outstanding general

license are applicable. Persons availing

themselves of certain general licenses

may be required to file reports and

statements in accordance with the

instructions specified in those licenses.

Failure to file such reports or statements

will nullify the authority of the general

license.

(b) Specific licenses—(1) General

course of procedure. Transactions

subject to the prohibitions contained in

this chapter, or to prohibitions the

implementation and administration of

which have been delegated to the

Director of the Office of Foreign Assets

Control, which are not authorized by

general license may be effected only

under specific licenses.

(2) Applications for specific licenses.

Applications for specific licenses to

engage in any transactions prohibited by

or pursuant to this chapter or sanctions

programs that have been delegated to

the Director of the Office of Foreign

Assets Control for implementation and

administration may be filed by letter

with the Office of Foreign Assets

Control. Any person having an interest

in a transaction or proposed transaction

may file an application for a license

authorizing such transaction, but the

applicant for a specific license is

required to make full disclosure of all

parties in interest to the transaction so

that a decision on the application may

be made with full knowledge of all

relevant facts and so that the identity

and location of the persons who know

about the transaction may be easily

ascertained in the event of inquiry.

(3) Information to be supplied. The

applicant must supply all information

specified by relevant instructions and/or

forms, and must fully disclose the

names of all parties who are concerned

with or interested in the proposed

transaction. If the application is filed by

an agent, the agent must disclose the

name of his principal(s). Such

documents as may be relevant shall be

attached to each application as a part of

such application, except that documents

previously filed with the Office of

Foreign Assets Control may, where

appropriate, be incorporated by

reference in such application.

Applicants are required to supply their

taxpayer identifying number pursuant to

31 U.S.C. 7701, which number may be

used for purposes of collecting and

reporting on any delinquent amounts

arising out of the applicant’s

relationship with the United States

Government. Applicants may be

required to furnish such further

information as is deemed necessary to a

proper determination by the Office of

Foreign Assets Control. Any applicant

or other party in interest desiring to

present additional information may do

so at any time before or after decision.

Arrangements for oral presentation

should be made with the Office of

Foreign Assets Control.

(4) Effect of denial. The denial of a

license does not preclude the reopening

of an application or the filing of a

further application. The applicant or

any other party in interest may at any

time request explanation of the reasons

for a denial by correspondence or

personal interview.

(5) Reports under specific licenses. As

a condition for the issuance of any

license, the licensee may be required to

file reports with respect to the

transaction covered by the license, in

such form and at such times and places

as may be prescribed in the license or

otherwise.

(6) Issuance of license. Licenses will

be issued by the Office of Foreign Assets

Control acting on behalf of the Secretary

of the Treasury or licenses may be

issued by the Secretary of the Treasury

acting directly or through any

specifically designated person, agency,

or instrumentality.

(7) Address. License applications,

reports, and inquiries should be

addressed to the appropriate division or

individual within the Office of Foreign

Assets Control, or to its Director, at the

following address: Office of Foreign

Assets Control, U.S. Department of the

Treasury, 1500 Pennsylvania Avenue,

NW—Annex, Washington, DC 20220.

§ 501.802 Decisions.

The Office of Foreign Assets Control

will advise each applicant of the

decision respecting filed applications.

The decision of the Office of Foreign

Assets Control acting on behalf of the

Secretary of the Treasury with respect to

an application shall constitute final

agency action.

§ 501.803 Amendment, modification, or

revocation.

The provisions of this part and any

rulings, licenses (whether general or

specific), authorizations, instructions,

orders, or forms issued hereunder may

be amended, modified, or revoked at

any time.

§ 501.804 Rulemaking.

(a) All rules and other public

documents are issued by the Director of

the Office of Foreign Assets Control. In

general, rulemaking by the Office of

Foreign Assets Control involves foreign

affairs functions of the United States,

and for that reason is exempt from the

requirements under the Administrative

Procedure Act (5 U.S.C. 553) for notice

of proposed rulemaking, opportunity for

public comment, and delay in effective

date.

(b) Any interested person may

petition the Director of the Office of

Foreign Assets Control in writing for the

issuance, amendment, or repeal of any

rule.

§ 501.805 Rules governing availability of

information.

(a) The records of the Office of

Foreign Assets Control which are

required by the Freedom of Information

Act (5 U.S.C. 552) to be made available

to the public shall be made available in

accordance with the definitions,

procedures, payment of fees, and other

provisions of the regulations on the

Disclosure of Records of the

Departmental Offices and of other

bureaus and offices of the Department of

the Treasury issued under 5 U.S.C. 552

and published at 31 CFR part 1.

(b) The records of the Office of

Foreign Assets Control which are

required by the Privacy Act (5 U.S.C.

552a) to be made available to an
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45105

individual shall be made available in

accordance with the definitions,

procedures, requirements for payment

of fees, and other provisions of the

Regulations on the Disclosure of

Records of the Departmental Offices and

of other bureaus and offices of the

Department of the Treasury issued

under 5 U.S.C. 552a and published at 31

CFR part 1.

(c) Any form issued for use in

connection with this chapter may be

obtained in person or by writing to the

Office of Foreign Assets Control, U.S.

Department of the Treasury, 1500

Pennsylvania Avenue, NW—Annex,

Washington, DC 20220, or by calling

202/622–2480.

§ 501.806 Procedures for unblocking

funds believed to have been blocked due to

mistaken identity.

When a transaction results in the

blocking of funds at a financial

institution pursuant to the applicable

regulations of this chapter and a party

to the transaction believes the funds

have been blocked due to mistaken

identity, that party may seek to have

such funds unblocked pursuant to the

following administrative procedures:

(a) Any person who is a party to the

transaction may request the release of

funds which the party believes to have

been blocked due to mistaken identity.

(b) Requests to release funds which a

party believes to have been blocked due

to mistaken identity must be made in

writing and addressed to the Office of

Foreign Assets Control, 1500

Pennsylvania Avenue, NW—Annex,

Washington, DC 20220, or sent by

facsimile transmission to 202/622–1657.

(c) The written request to release

funds must include the name, address,

telephone number, and (where

available) fax number of the party

seeking the release of the funds. For

individuals, the inclusion of a social

security number is voluntary but will

facilitate resolution of the request. For

corporations or other entities, the

application should include its principal

place of business, the state of

incorporation or organization, and the

name and telephone number of the

appropriate person to contact regarding

the application.

(d) A request to release funds should

include the following information,

where known, concerning the

transaction:

(1) The name of the financial

institution in which the funds are

blocked;

(2) The amount blocked;

(3) The date of the blocking;

(4) The identity of the original

remitter of the funds and any

intermediary financial institutions;

(5) The intended beneficiary of the

blocked transfer;

(6) A description of the underlying

transaction including copies of related

documents (e.g., invoices, bills of

lading, promissory notes, etc.);

(7) The nature of the applicant’s

interest in the funds; and

(8) A statement of the reasons why the

applicant believes the funds were

blocked due to mistaken identity.

(e) Upon receipt of the materials

required by paragraph (d) of this

section, OFAC may request additional

material from the applicant concerning

the transaction pursuant to § 501.602.

(f) Following review of all applicable

submissions, the Director of the Office

of Foreign Assets Control will determine

whether to release the funds. In the

event the Director determines that the

funds should be released, the Office of

Foreign Assets Control will direct the

financial institution to return the funds

to the appropriate party.

(g) For purposes of this section, the

term ‘‘financial institution’’ shall

include a banking institution,

depository institution or United States

depository institution, domestic bank,

financial institution or U.S. financial

institution, as those terms are defined in

the applicable part of this chapter.

§ 501.807 Procedures governing removal

of names from appendices A, B, and C to

this chapter.

Persons seeking administrative

reconsideration of their designation or

that of a vessel as blocked, or who wish

to assert that the circumstances

resulting in the designation are no

longer applicable, may seek to have the

designation rescinded pursuant to the

following administrative procedures:

(a) A specially designated national

(‘‘SDN’’), specially designated terrorist

(‘‘SDT’’), or specially designated

narcotics trafficker (‘‘SDNT’’)

(collectively, a ‘‘designated person’’), or

a person owning a majority interest in

a blocked vessel, may request disclosure

of the factual basis for designation and,

subject to the limitations contained in

paragraph (c) of this section, review

factual materials relied upon by the

Office of Foreign Assets Control in

designating the person or vessel.

(b) Requests to review such

information must be made in writing

and addressed to the Director, Office of

Foreign Assets Control, U.S. Department

of the Treasury, 1500 Pennsylvania

Avenue, NW—Annex, Washington, DC

20220.

(c) The Office of Foreign Assets

Control will deny access to documents

that are classified pursuant to Executive

Order No. 12958 or similar Executive

orders, or to documents that the Office

deems privileged, or that the Office

determines would not otherwise be

available by law to a party in litigation

with the Office. Similarly, the Office

may redact materials to protect

confidential or privileged information.

(d) Following a review of the basis of

designation, a designated person or

person owning a majority interest in a

blocked vessel may submit arguments or

evidence that the person believes refutes

the basis for designation, or may

propose remedial steps on its part,

including corporate reorganization,

resignation of position(s) in a blocked

organization or similar steps, which it

believes would negate the basis for

designation. A person owning a majority

interest in a blocked vessel may propose

the sale of the vessel, with the proceeds

to be placed into a blocked interestbearing account after deducting the

costs incurred while the vessel was

blocked and the costs of the sale.

(e) After making a written submission,

a designated person or person seeking

the unblocking of a vessel may request

a meeting with the Director of the Office

of Foreign Assets Control; however,

such meetings are not required, and the

Director may, at his discretion, decline

to conduct such meetings prior to

making a review pursuant to this

section.

(f) The information submitted by the

designated person or person seeking the

unblocking of a vessel will be reviewed

by the Director, who may request

clarifying, corroborating, or other

additional information.

(g) For purposes of judicial review, a

decision pursuant to this section

constitutes a final agency action.

§ 501.808 License application and other

procedures applicable to economic

sanctions programs.

Upon submission to the Office of

Management and Budget of an

amendment to the overall burden hours

for the information collections imposed

under this part, the license application

and other procedures set forth in this

subpart are applicable to economic

sanctions programs for which

implementation and administration

have been delegated to the Office of

Foreign Assets Control.

Subpart E—Paperwork Reduction Act

§ 501.901 Paperwork Reduction Act notice.

The information collection

requirements in subparts C and D have

been approved by the Office of

Management and Budget (‘‘OMB’’)
45106 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

under the Paperwork Reduction Act (44

U.S.C. 3507(j)) and assigned control

number 1505–0164. An agency may not

conduct or sponsor, and a person is not

required to respond to, a collection of

information unless it displays a valid

control number assigned by OMB.

PART 505—REGULATIONS

PROHIBITING TRANSACTIONS

INVOLVING THE SHIPMENT OF

CERTAIN MERCHANDISE BETWEEN

FOREIGN COUNTRIES

1. The authority citation for part 505

is revised to read as follows:

Authority: 31 U.S.C. 321(b); 50 U.S.C. App.

1–44; Pub. L. 101–410, 104 Stat. 890 (28

U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3

CFR, 1938–1943 Comp., p. 1174; E.O. 9989,

13 FR 4891, 3 CFR, 1943–1948 Comp., p. 748.

§ 505.40 [Amended]

2. Section 505.40 is amended by

revising the reference to ‘‘§§ 500.601

and 500.602’’ to read ‘‘§§ 501.601 and

501.602’’.

3. Section 505.60 is revised to read as

follows:

§ 505.60 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see § 500.802 and subpart D of

part 501 of this chapter.

PART 515—CUBAN ASSETS

CONTROL REGULATIONS

1. The authority citation for part 515

is revised to read as follows:

Authority: 18 U.S.C. 2332d; 22 U.S.C.

2370(a), 6001–6010; 31 U.S.C. 321(b); 50

U.S.C. App. 1–44; Pub. L. 101–410, 104 Stat.

890 (28 U.S.C. 2461 note); E.O. 9193, 7 FR

5205, 3 CFR, 1938–1943 Comp., p. 1147; E.O.

9989, 13 FR 4891, 3 CFR, 1943–48 Comp., p.

748; Proc. 3447, 27 FR 1085, 3 CFR 1959–

1963 Comp., p. 157; E.O. 12854, 58 FR 36587,

3 CFR, 1993 Comp., p. 614.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 515.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 515.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 515.201 is amended by

adding new paragraph (e) to read as

follows:

§ 515.201 Transactions involving

designated foreign countries or their

nationals; effective date.

* * * * *

(e) When a transaction results in the

blocking of funds at a banking

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—General Definitions

4. The note at the end of § 515.306 is

amended by adding a sentence to the

end of the note to read as follows:

§ 515.306 Specially designated national.

* * * * *

Note to § 515.306: * * * Section 501.807

of this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation or that of

a vessel as blocked, or who wish to assert

that the circumstances resulting in the

designation are no longer applicable.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

5. Section 515.508 is amended by

removing paragraph (f) and by adding a

note to the end of the section to read as

follows:

§ 515.508 Payments to blocked accounts

in domestic banks.

* * * * *

Note to § 515.508: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 515.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 515.701 [Amended]

7. Section 515.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and by adding in their

place the words ‘‘as adjusted by’’.

Subpart H—Procedures

8. Section 515.801 is revised to read

as follows:

§ 515.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 515.802–500.806 and 515.809

[Removed]

8a. Sections 515.802 through 515.806

and 515.809 are removed.

§§ 515.807 and 515.808 [Redesignated as

§§ 515.802 and 515.803]

8b. Sections 515.807 and 515.808 are

redesignated as §§ 515.802 and 515.803,

respectively.

Subpart I—Miscellaneous Provisions

9. Section 515.901 is revised to read

as follows:

§ 515.901 Paperwork Reduction Act notice.

Collection of information on TDF 90–

22.39, ‘‘Declaration, Travel to Cuba,’’

has been approved by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act (44

U.S.C. 3507(j)) and assigned control

number 1505–0118. For approval by

OMB under the Paperwork Reduction

Act of information collections relating

to recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 535—IRANIAN ASSETS

CONTROL REGULATIONS

1. The authority citation for part 535

is revised to read as follows:

Authority: 18 U.S.C. 2332d; 31 U.S.C.

321(b); 50 U.S.C. 1701–1706; Pub. L. 101–

410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O.

12170, 44 FR 65729, 3 CFR, 1979 Comp., p.

457; E.O. 12205, 45 FR 24099, 3 CFR, 1980

Comp., p. 248; E.O. 12211, 45 FR 26685, 3

CFR, 1980 Comp., p. 253; E.O. 12276, 46 FR

7913, 3 CFR 1981 Comp., p. 104; E.O. 12279,

46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O.

12280, 46 FR 7921, 3 CFR, 1981 Comp., p.

110; E.O. 12281, 46 FR 7923, 3 CFR, 1981

Comp., p. 110; E.O. 12282, 46 FR 7925, 3

CFR, 1981 Comp., p. 113; E.O. 12283, 46 FR

7927, 3 CFR, 1981 Comp., p. 114; and E.O.
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45107

12294, 46 FR 14111, 3 CFR, 1981 Comp., p.

139.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 535.101 is amended by

removing the first two sentences of

paragraph (a) and adding a new

sentence in their place to read as

follows:

§ 535.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart E—Licenses, Authorizations

and Statements of Licensing Policy

3. Section 535.508 is amended by

removing paragraph (f) and by adding a

note to the end of the section to read as

follows:

§ 535.508 Payments to blocked accounts

in domestic banks.

* * * * *

Note to § 535.508: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

4. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 535.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 535.701 [Amended]

5. Section 535.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

6. Subpart H is revised to read as

follows:

Subpart H—Procedures

§ 535.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

Subpart I—Miscellaneous Provisions

7. Section 535.905 is revised to read

as follows:

§ 535.905 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 536—NARCOTICS TRAFFICKING

SANCTIONS REGULATIONS

1. The authority citation for part 536

is revised to read as follows:

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);

50 U.S.C. 1601–1641, 1701–1706; Pub. L.

101–410, 104 Stat. 890 (28 U.S.C. 2461 note);

E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp.,

p. 415.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 536.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 536.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 536.201 is amended by

designating the existing paragraph as

paragraph (a) and by adding new

paragraph (b) to read as follows:

§ 536.201 Prohibited transactions

involving blocked property.

* * * * *

(b) When a transaction results in the

blocking of funds at a financial

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—General Definitions

4. Section 536.312 is amended by

adding a note to the end of the section

to read as follows:

§ 536.312 Specially designated narcotics

traffickers.

* * * * *

NOTE TO § 536.312: Please refer to the

appendices at the end of this chapter for

listings of persons determined to fall within

this definition who have been designated

pursuant to this part. Section 501.807 of this

chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation, or who

wish to assert that the circumstances

resulting in the designation are no longer

applicable.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

5. Section 536.503 is amended by

revising paragraph (a) and by adding a

note to the end of the section to read as

follows:

§ 536.503 Payments and transfers to

blocked accounts in U.S. financial

institutions.

(a) Any payment of funds or transfer

of credit or other financial or economic

resources or assets into a blocked

account in a U.S. financial institution is

authorized, provided that a transfer

from a blocked account pursuant to this

authorization may only be made to

another blocked account held in the

same name on the books of the same

U.S. financial institution.

* * * * *

NOTE TO § 536.503: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 536.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart H—Procedures

7. Section 536.801 is revised to read

as follows:

§ 536.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.
45108 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

§§ 536.802–536.804 and 536.806

[Removed]

7a. Sections 536.802 through 536.804

and 536.806 are removed.

§ 536.805 [Redesignated as § 536.802]

7b. Section 536.805 is redesignated as

§ 536.802.

Subpart I—Paperwork Reduction Act

8. Section 536.901 is revised to read

as follows:

§ 536.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 550—LIBYAN SANCTIONS

REGULATIONS

1. The authority citation for part 550

is revised to read as follows:

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d;

22 U.S.C. 287c, 2349aa–8 and 2349aa–9; 31

U.S.C. 321(b); 49 U.S.C. App. 1514; 50 U.S.C.

1601–1651, 1701–1706; Pub. L. 101–410, 104

Stat. 890 (28 U.S.C. 2461 note); E.O. 12543,

51 FR 875, 3 CFR, 1986 Comp., p. 181; E.O.

12544, 51 FR 1235, 3 CFR, 1986 Comp., p.

183; E.O. 12801, 57 FR 14319, 3 CFR, 1992

Comp., p. 294.

Subpart A—Relation of this Part to

Other Laws and Regulations

2. Section 550.101 is amended by

removing the first two sentences of

paragraph (a) and adding a new

sentence in their place to read as

follows:

§ 550.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 550.209 is amended by

adding new paragraph (c) to read as

follows:

§ 550.209 Prohibited transactions

involving property in which the Government

of Libya has an interest; transactions with

respect to securities.

* * * * *

(c) When a transaction results in the

blocking of funds at a financial

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—Definitions

4. The note at the end of § 550.304 is

amended by adding a sentence to the

end of the note to read as follows:

§ 550.304 Government of Libya.

* * * * *

Note to § 550.304: * * * Section 501.807 of

this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation or that of

a vessel as blocked, or who wish to assert

that the circumstances resulting in the

designation are no longer applicable.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

5. Section 550.511 is amended by

removing paragraph (g) and

redesignating paragraph (h) as

paragraph (g), by removing the words

‘‘paragraph (g) of this section’’ from the

last sentence of newly designated

paragraph (g) and adding in their place

the words ‘‘the note to this section’’, and

by adding a note to the end of the

section to read as follows:

§ 550.511 Payments and transfers to

blocked accounts in domestic banks.

* * * * *

Note to § 550.511: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 550.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 550.701 [Amended]

7. Section 550.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

Subpart H—Procedures

8. Section 550.801 is revised to read

as follows:

§ 550.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 550.802–550.804 and 500.806

[Removed]

8a. Sections 550.802 through 550.804

and 500.806 are removed.

§§ 550.805 and 550.807 [Redesignated as

§§ 550.802 and 550.803]

8b. Sections 550.805 and 550.807 are

redesignated as §§ 550.802 and 550.803,

respectively.

Subpart I—Miscellaneous

9. Section 550.901 is revised to read

as follows:

§ 550.901 Paperwork Reduction Act notice.

The information collection

requirements in § 550.560(d) have been

approved by the Office of Management

and Budget (‘‘OMB’’) under the

Paperwork Reduction Act (44 U.S.C.

3507(j)) and assigned control number

1505–0093. For approval by OMB under

the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 560—IRANIAN TRANSACTIONS

REGULATIONS

1. The authority citation for part 560

is revised to read as follows:

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d;

22 U.S.C. 2349aa-9; 31 U.S.C. 321(b); 50

U.S.C. 1601–1651, 1701–1706; Pub. L. 101–

410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O.

12613, 52 FR 41940, 3 CFR, 1987 Comp., p.

256; E.O. 12957, 60 FR 14615, 3 CFR, 1995

Comp., p. 332; E.O. 12959, 60 FR 24757, 3

CFR, 1995 Comp., p. 356.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 560.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45109

§ 560.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter, including part 535 of this

chapter, ‘‘Iranian Assets Control

Regulations,’’ with the exception of part

501 of this chapter, the recordkeeping

and reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart F—Reports

3. Section 560.601 is revised to read

as follows:

§ 560.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

§ 560.602 [Removed and reserved]

3a. Section 560.602 is removed and

reserved.

Subpart G—Penalties

§ 560.701 [Amended]

4. Section 560.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

Subpart H—Procedures

5. Section 560.801 is revised to read

as follows:

§ 560.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 560.802–560.804 and 560.807

[Removed]

5a. Sections 560.802 through 560.804

and 560.807 are removed.

§§ 560.805 and 560.806 [Redesignated as

§§ 560.802 and 560.803]

5b. Sections 560.805 and 560.806 are

redesignated as §§ 560.802 and 560.803,

respectively.

Subpart I—Paperwork Reduction Act

6. Section 560.901 is revised to read

as follows:

§ 560.901 Paperwork Reduction Act notice.

The specific information collection

requirements in § 560.603 have been

approved by the Office of Management

and Budget (‘‘OMB’’) under the

Paperwork Reduction Act (44 U.S.C.

3507(j)) and assigned control number

1505–0106. For approval by OMB under

the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 575—IRAQI SANCTIONS

REGULATIONS

1. The authority citation for part 575

is revised to read as follows:

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d;

22 U.S.C. 287c; Pub. L. 101–513, 104 Stat.

2047–55 (50 U.S.C. 1701 note); 31 U.S.C.

321(b); 50 U.S.C. 1601–1651, 1701–1706;

Pub. L. 101–410, 104 Stat. 890 (28 U.S.C.

2461 note); E.O. 12722, 55 FR 31803, 3 CFR,

1990 Comp., p. 294; E.O. 12724, 55 FR 33089,

3 CFR, 1992 Comp., p. 317; E.O. 12817, 57

FR 48433, 3 CFR, 1992 Comp., p. 317.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 575.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 575.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 575.201 is amended by

adding new paragraph (c) to read as

follows:

§ 575.201 Prohibited transactions

involving property in which the Government

of Iraq has an interest; transactions with

respect to securities.

* * * * *

(c) When a transaction results in the

blocking of funds at a financial

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—General Definitions

4. The note at the end of § 575.306 is

amended by adding a sentence to the

end of the note to read as follows:

§ 575.306 Government of Iraq.

* * * * *

Note to § 575.306: * * * Section 501.807 of

this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation or that of

a vessel as blocked, or who wish to assert

that the circumstances resulting in the

designation are no longer applicable.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

5. Section 575.503 is amended by

removing paragraph (h) and by adding

a note to the end of the section to read

as follows:

§ 575.503 Payments and transfers to

blocked accounts in U.S. financial

institutions.

* * * * *

Note to § 575.503: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 575.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 575.701 [Amended]

7. Section 557.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

Subpart H—Procedures

8. Section 575.801 is revised to read

as follows:

§ 575.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 575.802–575.804 and 575.806

[Removed]

8a. Sections 575.802 through 575.804

and 575.806 are removed.

§ 575.805 [Redesignated as § 575.802]

8b. Section 575.805 is redesignated as

§ 575.802.
45110 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

Subpart I—Paperwork Reduction Act

9. Section 575.901 is revised to read

as follows:

§ 575.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 585—FEDERAL REPUBLIC OF

YUGOSLAVIA (SERBIA AND

MONTENEGRO) AND BOSNIAN SERBCONTROLLED AREAS OF THE

REPUBLIC OF BOSNIA AND

HERZEGOVINA SANCTIONS

REGULATIONS

1. The authority citation for part 585

is revised to read as follows:

Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31

U.S.C. 321(b); 49 U.S.C. 40106; 50 U.S.C.

1601–1651, 1701–1706; Pub.L. 101–410, 104

Stat 890 (28 U.S.C. 2461 note); E.O. 12808,

57 FR 23299, 3 CFR, 1992 Comp., p. 305; E.O.

12810, 57 FR 24347, 3 CFR, 1992 Comp., p.

307; E.O. 12831, 58 FR 5253, 3 CFR, 1993

Comp., p. 576; E.O. 12846, 58 FR 25771, 3

CFR, 1993 Comp., p. 501; E.O. 12934, 59 FR

54117, 3 CFR, 1994 Comp., p. 930.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 585.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 585.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 585.201 is amended by

adding a new sentence to the end of the

note to § 585.201(c) and by adding new

paragraph (e) to read as follows:

§ 585.201 Prohibited transactions

involving blocked property; transactions

with respect to securities.

* * * * *

(c) * * *

Note to § 585.201(c): * * * Section 501.807

of this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation or that of

a vessel as blocked, or who wish to assert

that the circumstances resulting in the

designation are no longer applicable.

* * * * *

(e) When a transaction results in the

blocking of funds at a financial

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—General Definitions

4. The note at the end of § 585.311 is

amended by adding a sentence to the

end of the note to read as follows:

§ 585.311 Government of the FRY (S&M).

* * * * *

Note to § 585.311: * * * Section 501.807 of

this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation, or who

wish to assert that the circumstances

resulting in the designation are no longer

applicable.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

5. Section 585.503 is amended by

revising paragraph (a) and by adding a

note to the end of the section to read as

follows:

§ 585.503 Payments and transfers to

blocked accounts in U.S. financial

institutions.

(a) Any payment of funds or transfer

of credit or other financial or economic

resources or assets into a blocked

account in a U.S. financial institution is

authorized, provided that a transfer

from a blocked account pursuant to this

authorization may only be made to

another blocked account held in the

same name on the books of the same

U.S. financial institution.

* * * * *

Note to § 585.503: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 585.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 585.701 [Amended]

7. Section 585.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

Subpart H—Procedures

8. Section 585.801 is revised to read

as follows:

§ 585.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 585.802–585.804 and 585.806

[Removed]

8a. Sections 585.802 through 585.804

and 585.806 are removed.

§ 585.805 [Redesignated as § 585.802]

8b. Section 585.805 is redesignated as

§ 585.802.

Subpart I—Paperwork Reduction Act

9. Section 585.901 is revised to read

as follows:

§ 585.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 590—UNITA (ANGOLA)

SANCTIONS REGULATIONS

1. The authority citation for part 590

is revised to read as follows:

Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31

U.S.C. 321(b); 50 U.S.C. 1601–1651, 1701–

1706; Pub. L. 101–410, 104 Stat. 890 (28

U.S.C. 2461 note); E.O. 12865, 58 FR 51005,

3 CFR, 1993 Comp., p. 636.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 590.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45111

§ 590.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

3. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 590.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 590.701 [Amended]

4. Section 590.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by’’.

Subpart H—Procedures

5. Section 590.801 is revised to read

as follows:

§ 590.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 590.802 through 590.804 and 590.806

[Removed]

5a. Sections 590.802 through 590.804

and 590.806 are removed.

§ 590.805 [Redesignated as § 590.802]

5b. Section 590.805 is redesignated as

§ 590.802.

Subpart I—Paperwork Reduction Act

6. Section 590.901 is added to read as

follows:

§ 590.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 595—TERRORISM SANCTIONS

REGULATIONS

1. The authority citation for part 595

is revised to read as follows:

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);

50 U.S.C. 1601–1651, 1701–1706; Pub. L.

101–410, 104 Stat. 890 (28 U.S.C. 2461 note);

E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp.,

p. 319.

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 595.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 595.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

Subpart B—Prohibitions

3. Section 595.201 is amended by

designating the existing paragraph as

paragraph (a) and by adding new

paragraph (b) to read as follows:

§ 595.201 Prohibited transactions

involving blocked property.

* * * * *

(b) When a transaction results in the

blocking of funds at a financial

institution pursuant to this section and

a party to the transaction believes the

funds have been blocked due to

mistaken identity, that party may seek

to have such funds unblocked pursuant

to the administrative procedures set

forth in § 501.806 of this chapter.

Subpart C—General Definitions

4. The note at the end of § 595.311 is

amended by adding a sentence to the

end of the note to read as follows:

§ 595.311 Specially designated terrorist.

* * * * *

Note to § 595.311: * * * Section 501.807

of this chapter sets forth the procedures to be

followed by persons seeking administrative

reconsideration of their designation, or who

wish to assert that the circumstances

resulting in the designation are no longer

applicable.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

5. Section 595.503 is amended by

revising paragraph (a) and by adding a

note to the end of the section to read as

follows:

§ 595.503 Payments and transfers to

blocked accounts in U.S. financial

institutions.

(a) Any payment of funds or transfer

of credit or other financial or economic

resources or assets into a blocked

account in a U.S. financial institution is

authorized, provided that a transfer

from a blocked account pursuant to this

authorization may only be made to

another blocked account held in the

same name on the books of the same

U.S. financial institution.

* * * * *

Note to § 595.503: Please refer to § 501.603

of this chapter for mandatory reporting

requirements regarding financial transfers.

6. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 595.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart G—Penalties

§ 595.701 [Amended]

7. Section 595.701(a) introductory text

is amended by removing the words ‘‘as

amended by’’ and adding in their place

the words ‘‘as adjusted by.’’

Subpart H—Procedures

8. Section 595.801 is revised to read

as follows:

§ 595.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 595.802–595.804 and 595.806

[Removed]

8a. Sections 595.802 through 595.804

and 595.806 are removed.

§ 595.805 [Redesignated as § 595.802]

8b. Section 595.805 is redesignated as

§ 595.802.

Subpart I—Paperwork Reduction Act

9. Section 595.901 is revised to read

as follows:

§ 595.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of
45112 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

PART 596—TERRORISM LIST

GOVERNMENTS SANCTIONS

REGULATIONS

1. The authority citation for part 596

is revised to read as follows:

Authority: 18 U.S.C. 2332d; 31 U.S.C.

321(b).

Subpart A—Relation of This Part to

Other Laws and Regulations

2. Section 596.101 is amended by

revising the first sentence of paragraph

(a) to read as follows:

§ 596.101 Relation of this part to other

laws and regulations.

(a) This part is separate from, and

independent of, the other parts of this

chapter with the exception of part 501

of this chapter, the recordkeeping and

reporting requirements and license

application and other procedures of

which apply to this part. * * *

* * * * *

3. Subpart F is revised to read as

follows:

Subpart F—Reports

§ 596.601 Records and reports.

For provisions relating to records and

reports, see subpart C of part 501 of this

chapter.

Subpart H—Procedures

4. Section 596.801 is revised to read

as follows:

§ 596.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see subpart D of part 501 of this

chapter.

§§ 596.802–596.804 and 596.806

[Removed]

4a. Sections 596.802 through 596.804

and 596.806 are removed.

§ 596.805 [Redesignated as § 596.802]

4b. Section 596.805 is redesignated as

§ 596.802.

Subpart I—Paperwork Reduction Act

5. Section 596.901 is revised to read

as follows:

§ 596.901 Paperwork Reduction Act notice.

For approval by the Office of

Management and Budget (‘‘OMB’’)

under the Paperwork Reduction Act of

information collections relating to

recordkeeping and reporting

requirements, to licensing procedures

(including those pursuant to statements

of licensing policy), and to other

procedures, see § 501.901 of this

chapter. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

Dated: August 7, 1997.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: August 11, 1997.

John P. Simpson,

Acting Assistant Secretary (Enforcement).

Note: The following Form will not appear

in the Code of Federal Regulations.

BILLING CODE 4810–25–P
Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations 45113
45114 Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules and Regulations

[FR Doc. 97–22378 Filed 8–22–97; 8:45 am]

BILLING CODE 4810–25–P