Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations 9959

Original amendment

submission date

Date of final publication Citation/description

May 1, 1986 ................ January 29, 1991 ........ LQD Rules, Ch IV, §§ 3(h)(iii)(A), (B); Ch VI, § 3(c)(ii)(C)(I)

March 21, 1991 ........... July 8, 1992 ................ W.S. Article 1, subsection 35–11–103(e) (xxvi), (xxvii); Article 4, subsection 35–11–402(b).

June 24, 1991 ............. October 29, 1992 ........ W.S. 35–11–103(d)(ii)(D); LQD Rules, Ch I, §§ 2(br), (ba), 3(b)(i); Ch II, §§ 3(a)(vi)(E), (M),

(b)(xvi)(D), (xx), (v)(C); Ch IV, §§ 3(d)(vii), (e)(i)(H); Ch XI, § 2(b)(iv); Ch XII, § 1(a); Ch XIII,

§ 1(a)(v)(A); Ch XXI, § 3(b)(vii), (x).

March 19, 1993 ........... August 23, 1993 .......... W.S. 35–11–406(h), (j).

July 8, 1992 ................. October 7, 1993 .......... LQD Rules, Ch II, § 3(b)(iv)(B); Ch IV, § 3(o)(iv); Appendix B, ‘‘Wildlife Monitoring Requirements for Surface Coal Mining Operations’’.

July 24, 1992 ............... November 2, 1993 ...... LQD Rules, Ch I, § 2(e); Ch II, § 3(a)(i)(D); Ch XIV, §§ 2(b)(i), 6(a).

August 18, 1982,

March 9, 1993.

January 24, 1994 ........ W.S. 35–11–437(f); LQD Rules, Ch I, § 2(cv) defining ‘‘toxic materials;’’ Ch II, § 7; Ch V pertaining to the award of costs and expenses in administrative proceedings; Ch VI pertaining

to informal review by the Director.

December 15, 1992,

August 6, 1993.

March 30, 1994 ........... LQD Rules, Chs I through XX, Appendices A, B.

May 1, 1986 ................ June 30, 1994 ............. LQD Rules, Ch IV, § 2(b)(i).

April 13, 1994 .............. October 21, 1994 ........ W.S. 35–11–437(f), (g).

November 8, 1994 ...... March 17, 1995 ........... Appendix B, §§ C, E.

June 2, 1995 ............... September 14, 1995 ... W.S. 35–11–406(j).

April 21, 1995 .............. February 21, 1996 ...... W.S. 35–11–1206(a), (b), –1209(a), (b).

November 29, 1995 .... August 6, 1996 ............ W.S. 35–11–103(e)(xxviii), (xxix), (xxx); 35–11–402(b), (c); Ch I, § 2(ac), (ax), (bc)(iii), (viii),

(xi), (v), (w); Ch. II, § 2(a)(vi)(G)(II), (b)(iv)(C); Ch IV, § 2(d)(x)(E)(I), (II), (III), appendix A;

Ch X, § 4(e); Ch XI, § 5(a); Ch. XIII, § 1(a).

April 18, 1996 .............. August 27, 1996 .......... W.S. 35–11–426(a), (b); 35–11–431(a)(vi).

68. Section 950.35 is revised to read as follows:

§ 950.35 Approval of Wyoming abandoned mine land reclamation plan amendments.

(a) Wyoming certification of completing all known coal-related impacts is accepted, effective May 25, 1984.

(b) The following is a list of the dates amendments were submitted to OSM, the dates when the Director’s decision

approving all, or portions of these amendments, were published in the Federal Register and the State citations or

a brief description of each amendment. The amendments in this table are listed in order of the date of final publication

in the Federal Register.

Original amendment

submission date

Date of final publication Citation/description

December 16, 1991 .... April 13, 1992 .............. W.S. 35–11–1201 through 1304; Chs I through VIII of State’s AML rules.

April 21, 1995 .............. February 21, 1996 ...... W.S. 35–11–1206(a), (b); –1209(a), (b).

[FR DOC. 97–5243 Filed 3–4–97; 8:45 am]

BILLING CODE 4310–05–P

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 536

Narcotics Trafficking Sanctions

Regulations

AGENCY: Office of Foreign Assets

Control, Treasury.

ACTION: Final rule.

SUMMARY: The Office of Foreign Assets

Control of the U.S. Department of the

Treasury is issuing the Narcotics

Trafficking Sanctions Regulations to

implement the President’s declaration of

a national emergency and imposition of

sanctions against significant foreign

narcotics traffickers centered in

Colombia.

EFFECTIVE DATE: February 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Office of Foreign Assets Control,

Department of the Treasury,

Washington, DC 20220; tel.: 202/622–

2520.

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 AcrobatTM 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 appropriate

self–expanding file 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–on–

demand service: call 202/622–0077

using a fax machine, fax modem, or

(within the United States) a touch–tone

telephone.

Background

On October 21, 1995, the President

issued Executive Order 12978, declaring

a national emergency with respect to

‘‘the actions of significant foreign

narcotics traffickers centered in

Colombia, and the unparalleled

violence, corruption, and harm that they

cause in the United States and abroad,’’
9960 Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations

and invoking the authority, inter alia, of

the International Emergency Economic

Powers Act (50 U.S.C. 1701–1706). The

order blocks all property and interests

in property of four persons listed in an

Annex to the order, as well as the

property and interests in property of

other persons who are designated by the

Secretary of the Treasury, in

consultation with the Attorney General

and the Secretary of State. The order

also authorizes the Secretary of the

Treasury, in consultation with the

Attorney General and the Secretary of

State, to take such actions, including the

promulgation of rules and regulations,

as may be necessary to carry out the

purposes of the order. In

implementation of the order, the

Treasury Department is issuing the

Narcotics Trafficking Sanctions

Regulations (the ‘‘Regulations’’).

The Regulations block all property

and interests in property of (1) foreign

persons designated in Executive Order

12978; (2) foreign persons designated by

the Secretary of the Treasury, in

consultation with the Attorney General

and the Secretary of State, because they

are found:

(a) to play a significant role in

international narcotics trafficking

centered in Colombia; or

(b) materially to assist in, or provide

financial or technological support for or

goods or services in support of, the

narcotics trafficking activities of persons

designated in or pursuant to the order.

The Regulations also block all

property and interests in property of

persons determined by the Secretary of

the Treasury, in consultation with the

Attorney General and the Secretary of

State, to be owned or controlled by, or

to act for or on behalf of, any other

designated person. Persons coming

within any of these categories are called

specially designated narcotics traffickers

(‘‘SDNTs’’). Executive Order 12978

blocks all property or interests in

property of SDNTs that are in the

United States, that hereinafter come

within the United States, or that are or

hereafter come within the possession or

control of U.S. persons, including their

overseas branches. Section 2 of

Executive Order 12978 also prohibits

any transaction or dealing by U.S.

persons or in the United States in

property or interests in property of

SDNTs, including any transaction that

evades or avoids, or that has the

purpose of evading or avoiding, or

attempts to violate, any of the

prohibitions set forth in the order.

Transactions otherwise prohibited

under this part but found to be

consistent with U.S. policy may be

authorized by a general license

contained in subpart E or by a specific

license issued pursuant to the

procedures described in § 536.801 of

subpart H. Civil and criminal penalties

for violations of the Regulations are

described in subpart G.

Since the Regulations involve a

foreign affairs function, the provisions

of Executive Order 12866 and 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. Wherever possible, however,

it is the practice of the Office of Foreign

Assets Control to receive written

submissions or hold informal

consultations with interested parties

concerning any rule or other public

document.

Paperwork Reduction Act

The 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),

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–

0163. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The collections of information in the

Regulations are contained in §§ 536.503,

536.504, subpart F, and § 536.801. This

information is required by the Office of

Foreign Assets Control for licensing,

compliance, civil penalty, and

enforcement purposes. This information

will be used to determine the eligibility

of applicants for the benefits provided

through specific licenses, to determine

whether persons subject to the

Regulations are in compliance with

applicable requirements, and to

determine whether and to what extent

civil penalty or other enforcement

action is appropriate. The likely

respondents and record keepers are

individuals and business organizations.

The estimated total annual reporting

and/or recordkeeping burden: 500

hours.

The estimated annual burden per

respondent/record keeper varies from 30

minutes to 2 hours, depending on

individual circumstances, with an

estimated average of 1 hour.

Estimated number of respondents

and/or record keepers: 500.

Estimated annual frequency of

responses: 1–12.

Comments are invited on: (a) whether

these 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 1505–0163,

Washington, DC 20503, with a copy to

the Office of Foreign Assets Control,

Department of the Treasury, 1500

Pennsylvania Ave., NW—Annex,

Washington, DC 20220. Any such

comments should be submitted not later

than May 5, 1997. Comments on aspects

of the Regulations other than those

involving collections of information

should not be sent to OMB.

List of Subjects in 31 CFR Part 536

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Drug traffic control, Narcotics

trafficking, Penalties, Reporting and

recordkeeping requirements, Specially

designated narcotics traffickers, Transfer

of assets.

For the reasons set forth in the

preamble, 31 CFR part 536 is added to

read as follows:

PART 536—NARCOTICS TRAFFICKING

SANCTIONS REGULATIONS

Subpart A—Relation of This Part to Other

Laws and Regulations

Sec.

536.101 Relation of this part to other laws

and regulations.

Subpart B—Prohibitions

536.201 Prohibited transactions involving

blocked property.

536.202 Effect of transfers violating the

provisions of this part.

536.203 Holding of certain types of blocked

property in interest–bearing accounts.

536.204 Evasions; attempts; conspiracies.

536.205 Exempt transactions.
Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations 9961

Subpart C—General Definitions

536.301 Blocked account; blocked property.

536.302 Effective date.

536.303 Entity.

536.304 Foreign person.

536.305 General license.

536.306 Information and informational

materials.

536.307 Interest.

536.308 License.

536.309 Person.

536.310 Property; property interest.

536.311 Narcotics trafficking.

536.312 Specially designated narcotics

trafficker.

536.313 Specific license.

536.314 Transfer.

536.315 United States.

536.316 United States person; U.S. person.

536.317 U.S. financial institution.

Subpart D—Interpretations

536.401 Reference to amended sections.

536.402 Effect of amendment.

536.403 Termination and acquisition of an

interest in blocked property.

536.404 Setoffs prohibited.

536.405 Transactions incidental to a licensed

transaction.

536.406 Provision of services.

536.407 Offshore transactions.

536.408 Alleged change in ownership or

control of an entity designated as a

specially designated narcotics trafficker.

536.409 Credit extended and cards issued by

U.S. financial institutions.

Subpart E—Licenses, Authorizations, and

Statements of Licensing Policy

536.501 Effect of license or authorization.

536.502 Exclusion from licenses and

authorizations.

536.503 Payments and transfers to blocked

accounts in U.S. financial institutions.

536.504 Investment and reinvestment of

certain funds.

536.505 Entries in certain accounts for

normal service charges authorized.

536.506 Provision of certain legal services

authorized.

536.507 Authorization of emergency medical

services.

Subpart F—Reports

536.601 Required records.

536.602 Reports to be furnished on demand.

536.603 Registration of persons holding

blocked property subject to § 536.201.

Subpart G—Penalties

536.701 Penalties.

536.702 Prepenalty notice.

536.703 Response to prepenalty notice.

536.704 Penalty notice.

536.705 Administrative collection; referral to

United States Department of Justice.

Subpart H—Procedures

536.801 Licensing.

536.802 Decisions.

536.803 Amendment, modification, or

revocation.

536.804 Rulemaking.

536.805 Delegation by the Secretary of the

Treasury.

536.806 Rules governing availability of

information.

Subpart I—Paperwork Reduction Act

536.901 Paperwork Reduction Act notice.

Authority: 3 U.S.C. 301; 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 (October 24, 1995), 3 CFR, 1995

Comp., p. 415.

Subpart A—Relation of This Part to

Other Laws and Regulations

§ 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. Differing foreign policy and

national security contexts may result in

differing interpretations of similar

language among the parts of this

chapter. No license or authorization

contained in or issued pursuant to those

other parts authorizes any transaction

prohibited by this part. No license or

authorization contained in or issued

pursuant to any other provision of law

or regulation authorizes any transaction

prohibited by this part.

(b) No license or authorization

contained in or issued pursuant to this

part relieves the involved parties from

complying with any other applicable

laws or regulations.

Subpart B—Prohibitions

§ 536.201 Prohibited transactions

involving blocked property.

Except as authorized by regulations,

orders, directives, rulings, instructions,

licenses, or otherwise, and

notwithstanding any contract entered

into or any license or permit granted

prior to the effective date, no property

or interests in property of a specially

designated narcotics trafficker that are

in the United States, that hereafter come

within the United States, or that are or

hereafter come within the possession or

control of U.S. persons, including their

overseas branches, may be transferred,

paid, exported, withdrawn or otherwise

dealt in.

§ 536.202 Effect of transfers violating the

provisions of this part.

(a) Any transfer after the effective

date, which is in violation of any

provision of this part or of any

regulation, order, directive, ruling,

instruction, license, or other

authorization hereunder and involves

any property held in the name of a

specially designated narcotics trafficker

or in which a specially designated

narcotics trafficker has or has had an

interest since such date, is null and void

and shall not be the basis for the

assertion or recognition of any interest

in or right, remedy, power or privilege

with respect to such property.

(b) No transfer before the effective

date shall be the basis for the assertion

or recognition of any right, remedy,

power, or privilege with respect to, or

interest in, any property held in the

name of a specially designated narcotics

trafficker or in which a specially

designated narcotics trafficker has an

interest, or has had an interest since

such date, unless the person with whom

such property is held or maintained,

prior to such date, had written notice of

the transfer or by any written evidence

had recognized such transfer.

(c) Unless otherwise provided, an

appropriate license or other

authorization issued by or pursuant to

the direction or authorization of the

Director of the Office of Foreign Assets

Control before, during, or after a transfer

shall validate such transfer or render it

enforceable to the same extent that it

would be valid or enforceable but for

the provisions of the International

Emergency Economic Powers Act, this

part, and any regulation, order,

directive, ruling, instruction, or license

issued hereunder.

(d) Transfers of property which

otherwise would be null and void or

unenforceable by virtue of the

provisions of this section shall not be

deemed to be null and void or

unenforceable as to any person with

whom such property was held or

maintained (and as to such person only)

in cases in which such person is able to

establish to the satisfaction of the

Director of the Office of Foreign Assets

Control each of the following:

(1) Such transfer did not represent a

willful violation of the provisions of this

part by the person with whom such

property was held or maintained;

(2) The person with whom such

property was held or maintained did not

have reasonable cause to know or

suspect, in view of all the facts and

circumstances known or available to

such person, that such transfer required

a license or authorization by or pursuant

to this part and was not so licensed or

authorized, or if a license or

authorization did purport to cover the

transfer, that such license or

authorization had been obtained by

misrepresentation of a third party or the

withholding of material facts or was

otherwise fraudulently obtained; and

(3) The person with whom such

property was held or maintained filed

with the Office of Foreign Assets

Control a report setting forth in full the

circumstances relating to such transfer

promptly upon discovery that:

(i) Such transfer was in violation of

the provisions of this part or any
9962 Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations

regulation, ruling, instruction, license,

or other direction or authorization

hereunder; or

(ii) Such transfer was not licensed or

authorized by the Director of the Office

of Foreign Assets Control; or

(iii) If a license did purport to cover

the transfer, such license had been

obtained by misrepresentation of a third

party or the withholding of material

facts or was otherwise fraudulently

obtained.

Note to paragraph (d)(3): The filing of

a report in accordance with the

provisions of this paragraph (d)(3) shall

not be deemed evidence that the terms

of paragraphs (d)(l) and (2) of this

section have been satisfied.

(e) Unless licensed or authorized

pursuant to this part, any attachment,

judgment, decree, lien, execution,

garnishment, or other judicial process is

null and void with respect to any

property which, on or since the effective

date, was held in the name of a specially

designated narcotics trafficker or in

which there existed an interest of a

specially designated narcotics trafficker.

536.203 Holding of certain types of

blocked property in interest–bearing

accounts.

(a)(1) Any person, including a U.S.

financial institution, currently holding

property subject to § 536.201 which, as

of the effective date or the date of

receipt if subsequent to the effective

date, is not being held in an interest–

bearing account, or otherwise invested

in a manner authorized by the Office of

Foreign Assets Control (e.g., § 536.504),

shall transfer such property to, or hold

such property or cause such property to

be held in, an interest–bearing account

or interest–bearing status in a U.S.

financial institution as of the effective

date or the date of receipt if subsequent

to the effective date of this section,

unless otherwise authorized or directed

by the Office of Foreign Assets Control.

(2) The requirement set forth in

paragraph (a)(1) of this section shall

apply to currency, bank deposits,

accounts, obligations, and any other

financial or economic resources or

assets, and any proceeds resulting from

the sale of tangible or intangible

property. If interest is credited to an

account separate from that in which the

interest–bearing asset is held, the name

of the account party on both accounts

must be the same and must clearly

indicate the specially designated

narcotics trafficker having an interest in

the accounts. If the account is held in

the name of a specially designated

narcotics trafficker, the name of the

account to which interest is credited

must be the same.

(b) For purposes of this section, the

term interest–bearing account means a

blocked account in a U.S. financial

institution earning interest at rates that

are commercially reasonable for the

amount of funds in the account. Except

as otherwise authorized, the funds may

not be invested or held in instruments

the maturity of which exceeds 90 days.

(c) This section does not apply to

blocked tangible property, such as

chattels, nor does it create an affirmative

obligation on the part of the holder of

such blocked tangible property to sell or

liquidate the property and put the

proceeds in a blocked account.

However, the Office of Foreign Assets

Control may issue licenses permitting or

directing sales of tangible property in

appropriate cases.

536.204 Evasions; attempts; conspiracies.

Any transaction for the purpose of, or

which has the effect of, evading or

avoiding, or which facilitates the

evasion or avoidance of, any of the

prohibitions set forth in this part, is

hereby prohibited. Any attempt to

violate the prohibitions set forth in this

part is hereby prohibited. Any

conspiracy formed for the purpose of

engaging in a transaction prohibited by

this part is hereby prohibited.

536.205 Exempt transactions.

(a) Personal communications. The

prohibitions contained in this part do

not apply to any postal, telegraphic,

telephonic, or other personal

communication, which does not involve

the transfer of anything of value.

(b) Information and informational

materials. (1) The importation from any

country and the exportation to any

country of information or informational

materials as defined in § 536.306,

whether commercial or otherwise,

regardless of format or medium of

transmission, are exempt from the

prohibitions and regulations of this part.

(2) This section does not authorize

transactions related to information and

informational materials not fully created

and in existence at the date of the

transactions, or to the substantive or

artistic alteration or enhancement of

informational materials, or to the

provision of marketing and business

consulting services by a U.S. person.

Such prohibited transactions include,

without limitation, payment of advances

for informational materials not yet

created and completed, provision of

services to market, produce or co–

produce, create or assist in the creation

of information and informational

materials, and payment of royalties to a

specially designated narcotics trafficker

with respect to income received for

enhancements or alterations made by

U.S. persons to information or

informational materials imported from a

specially designated narcotics trafficker.

(3) This section does not authorize

transactions incident to the exportation

of technology that is not informational

material as defined in § 536.306(b)(1) or

incident to the exportation of goods for

use in the transmission of any

information.

(c) Travel. The prohibitions contained

in this part do not apply to transactions

ordinarily incident to travel to or from

any country, including importation of

accompanied baggage for personal use,

maintenance within any country

including payment of living expenses

and acquisition of goods or services for

personal use, and arrangement or

facilitation of such travel including

non–scheduled air, sea, or land voyages.

Any transactions entered into by a

specially designated narcotics trafficker

while traveling in the United States that

are outside the scope of those set forth

in this paragraph are in violation of

§ 536.201.

Subpart C—General Definitions

§ 536.301 Blocked account; blocked

property.

The terms blocked account and

blocked property shall mean any

account or property subject to the

prohibition in § 536.201 held in the

name of a specially designated narcotics

trafficker or in which a specially

designated narcotics trafficker has an

interest, and with respect to which

payments, transfers, exportations,

withdrawals, or other dealings may not

be made or effected except pursuant to

an authorization or license from the

Office of Foreign Assets Control

authorizing such action.

§ 536.302 Effective date.

The term effective date refers to the

effective date of the applicable

prohibitions and directives contained in

this part which is 12:01 a.m. EDT,

October 22, 1995, or, in the case of

specially designated narcotics traffickers

designated after that date, the earlier of

the date on which a person receives

actual or constructive notice of such

designation.

§ 536.303 Entity.

The term entity means a partnership,

association, corporation, or other

organization, group or subgroup.

§ 536.304 Foreign person.

The term foreign person means any

citizen or national of a foreign state

(including any such individual who is

also a citizen or national of the United
Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations 9963

States), or any entity not organized

solely under the laws of the United

States or existing solely in the United

States, but does not include a foreign

state.

§ 536.305 General license.

The term general license means any

license or authorization the terms of

which are set forth in this part.

§ 536.306 Information and informational

materials.

(a) For purposes of this part, the term

information and informational

materials means:

(1) Publications, films, posters,

phonograph records, photographs,

microfilms, microfiche, tapes, compact

disks, CD ROMs, artworks, and news

wire feeds, and other information and

informational articles.

(2) To be considered informational

materials, artworks must be classified

under chapter subheading 9701, 9702,

or 9703 of the Harmonized Tariff

Schedule of the United States.

(b) The terms information and

informational materials with respect to

U.S. exports do not include items:

(1) That were, as of April 30, 1994, or

that thereafter become, controlled for

export pursuant to section 5 of the

Export Administration Act of 1979, 50

U.S.C. App. 2401–2420 (the ‘‘EAA’’), or

section 6 of the EAA to the extent that

such controls promote nonproliferation

or antiterrorism policies of the United

States, including software as defined in

15 CFR part 772 that is not publicly

available (see 15 CFR parts 734 and

772); or

(2) With respect to which acts are

prohibited by 18 U.S.C. chapter 37.

§ 536.307 Interest.

Except as otherwise provided in this

part, the term interest when used with

respect to property (e.g., ‘‘an interest in

property’’) means an interest of any

nature whatsoever, direct or indirect.

§ 536.308 License.

Except as otherwise specified, the

term license means any license or

authorization contained in or issued

pursuant to this part.

§ 536.309 Person.

The term person means an individual

or entity.

§ 536.310 Property; property interest.

The terms property and property

interest include, but are not limited to,

money, checks, drafts, bullion, bank

deposits, savings accounts, debts,

indebtedness, obligations, notes,

guarantees, debentures, stocks, bonds,

coupons, any other financial

instruments, bankers acceptances,

mortgages, pledges, liens or other rights

in the nature of security, warehouse

receipts, bills of lading, trust receipts,

bills of sale, any other evidences of title,

ownership or indebtedness, letters of

credit and any documents relating to

any rights or obligations thereunder,

powers of attorney, goods, wares,

merchandise, chattels, stocks on hand,

ships, goods on ships, real estate

mortgages, deeds of trust, vendors sales

agreements, land contracts, leaseholds,

ground rents, real estate and any other

interest therein, options, negotiable

instruments, trade acceptances,

royalties, book accounts, accounts

payable, judgments, patents, trademarks

or copyrights, insurance policies, safe

deposit boxes and their contents,

annuities, pooling agreements, services

of any nature whatsoever, contracts of

any nature whatsoever, and any other

property, real, personal, or mixed,

tangible or intangible, or interest or

interests therein, present, future or

contingent.

§ 536.311 Narcotics trafficking.

The term narcotics trafficking means

any activity undertaken illicitly to

cultivate, produce, manufacture,

distribute, sell, finance or transport, or

otherwise assist, abet, conspire, or

collude with others in illicit activities

relating to narcotic drugs, including, but

not limited to, cocaine.

§ 536.312 Specially designated narcotics

trafficker.

The term specially designated

narcotics trafficker means:

(a) Persons listed in the annex to

Executive Order 12978 (3 CFR, 1995

Comp., p.415);

(b) Foreign persons designated by the

Secretary of Treasury, in consultation

with the Attorney General and the

Secretary of State, because they are

found:

(1) To play a significant role in

international narcotics trafficking

centered in Colombia; or

(2) Materially to assist in, or provide

financial or technological support for or

goods or services in support of, the

narcotics trafficking activities of

specially designated narcotics

traffickers; and

(c) Persons determined by the

Secretary of the Treasury, in

consultation with the Attorney General

and the Secretary of State, to be owned

or controlled by, or to act for or on

behalf of, any other specially designated

narcotics trafficker.

§ 536.313 Specific license.

The term specific license means any

license or authorization not set forth in

this part but issued pursuant to this

part.

§ 536.314 Transfer.

The term transfer means any actual or

purported act or transaction, whether or

not evidenced by writing, and whether

or not done or performed within the

United States, the purpose, intent, or

effect of which is to create, surrender,

release, convey, transfer, or alter,

directly or indirectly, any right, remedy,

power, privilege, or interest with respect

to any property and, without limitation

upon the foregoing, shall include the

making, execution, or delivery of any

assignment, power, conveyance, check,

declaration, deed, deed of trust, power

of attorney, power of appointment, bill

of sale, mortgage, receipt, agreement,

contract, certificate, gift, sale, affidavit,

or statement; the making of any

payment; the setting off of any

obligation or credit; the appointment of

any agent, trustee, or fiduciary; the

creation or transfer of any lien; the

issuance, docketing, filing, or levy of or

under any judgment, decree,

attachment, injunction, execution, or

other judicial or administrative process

or order, or the service of any

garnishment; the acquisition of any

interest of any nature whatsoever by

reason of a judgment or decree of any

foreign country; the fulfillment of any

condition; the exercise of any power of

appointment, power of attorney, or

other power; or the acquisition,

disposition, transportation, importation,

exportation, or withdrawal of any

security.

§ 536.315 United States.

The term United States means the

United States, its territories and

possessions, and all areas under the

jurisdiction or authority thereof.

§ 536.316 United States person; U.S.

person.

The term United States person or U.S.

person means any United States citizen

or national; permanent resident alien;

entity organized under the laws of the

United States or any jurisdiction within

the United States (including foreign

branches); or any person in the United

States.

§ 536.317 U.S. financial institution.

The term U.S. financial institution

means any U.S. person (including

foreign branches) that is engaged in the

business of accepting deposits, making,

granting, transferring, holding, or

brokering loans or credits, or purchasing

or selling foreign exchange, securities,

commodity futures or options, or

procuring purchasers and sellers

thereof, as principal or agent; including,
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but not limited to, depository

institutions, banks, savings banks, trust

companies, securities brokers and

dealers, commodity futures and options

brokers and dealers, forward contract

and foreign exchange merchants,

securities and commodities exchanges,

clearing corporations, investment

companies, employee benefit plans, and

U.S. holding companies, U.S. affiliates,

or U.S. subsidiaries of any of the

foregoing. This term includes those

branches, offices and agencies of foreign

financial institutions which are located

in the United States, but not such

institutions’ foreign branches, offices, or

agencies.

Subpart D—Interpretations

§ 536.401 Reference to amended sections.

Except as otherwise specified,

reference to any section of this part or

to any regulation, ruling, order,

instruction, direction, or license issued

pursuant to this part shall be deemed to

refer to the same as currently amended.

§ 536.402 Effect of amendment.

Any amendment, modification, or

revocation of any section of this part or

of any order, regulation, ruling,

instruction, or license issued by or

under the direction of the Director of the

Office of Foreign Assets Control shall

not, unless otherwise specifically

provided, be deemed to affect any act

done or omitted to be done, or any civil

or criminal suit or proceeding

commenced or pending prior to such

amendment, modification, or

revocation. All penalties, forfeitures,

and liabilities under any such order,

regulation, ruling, instruction, or license

shall continue and may be enforced as

if such amendment, modification, or

revocation had not been made.

§ 536.403 Termination and acquisition of

an interest in blocked property.

(a) Whenever a transaction licensed or

authorized by or pursuant to this part

results in the transfer of property

(including any property interest) away

from a specially designated narcotics

trafficker, such property shall no longer

be deemed to be property in which a

specially designated narcotics trafficker

has or has had an interest, or which is

held in the name of a specially

designated narcotics trafficker, unless

there exists in the property another

interest of a specially designated

narcotics trafficker, the transfer of

which has not been effected pursuant to

license or other authorization.

(b) Unless otherwise specifically

provided in a license or authorization

issued pursuant to this part, if property

(including any property interest) is

transferred or attempted to be

transferred to a specially designated

narcotics trafficker, such property shall

be deemed to be property in which there

exists an interest of the specially

designated narcotics trafficker.

§ 536.404 Setoffs prohibited.

A setoff against blocked property

(including a blocked account), whether

by a U.S. bank or other U.S. person, is

a prohibited transfer under § 536.201 if

effected after the effective date.

§ 536.405 Transactions incidental to a

licensed transaction.

Any transaction ordinarily incident to

a licensed transaction and necessary to

give effect thereto is also authorized,

except a transaction by an unlicensed,

specially designated narcotics trafficker

or involving a debit to a blocked

account or a transfer of blocked property

not explicitly authorized within the

terms of the license.

§ 536.406 Provision of services.

(a) Except as provided in § 536.205,

the prohibitions contained in § 536.201

apply to services performed by U.S.

persons, wherever located:

(1) On behalf of, or for the benefit of,

a specially designated narcotics

trafficker; or

(2) With respect to property interests

of a specially designated narcotics

trafficker.

(b) Example: U.S. persons may not,

except as authorized by the Office of

Foreign Assets Control by or pursuant to

this part, provide legal, accounting,

financial, brokering, freight forwarding,

transportation, public relations,

educational, or other services to a

specially designated narcotics trafficker.

See § 536.506, with respect to certain

authorized legal services.

§ 536.407 Offshore transactions.

The prohibitions contained in

§ 536.201 apply to transactions by U.S.

persons in locations outside the United

States with respect to property which

the U.S. person knows, or has reason to

know, is held in the name of a specially

designated narcotics trafficker, or in

which the U.S. person knows, or has

reason to know, a specially designated

narcotics trafficker has or has had an

interest since the effective date.

§ 536.408 Alleged change in ownership or

control of an entity designated as a

specially designated narcotics trafficker.

(a) A change or alleged change in

ownership or control of an entity

designated as a specially designated

narcotics trafficker shall not be the basis

for removal of that entity from the list

of specially designated narcotics

traffickers unless, upon investigation by

the Office of Foreign Assets Control and

submission of evidence by the entity, it

is demonstrated to the satisfaction of the

Director of the Office of Foreign Assets

Control that the transfer to a bona fide

purchaser at arm’s length is legitimate

and that the entity no longer meets the

criteria for designation under § 536.312.

Evidence submitted must conclusively

demonstrate that all ties with other

specially designated narcotics traffickers

have been completely severed, and may

include, but is not limited to, articles of

incorporation; identification of new

directors, officers, shareholders, and

sources of capital; and contracts

evidencing the sale of the entity to its

new owners.

(b) Any continuing substantial

financial obligations on the part of the

new owners to any specially designated

narcotics traffickers, including long–

term payment plans, leases, or rents,

will be considered as evidence of

continuing control of the entity by the

specially designated narcotics trafficker.

Purchase of a designated entity without

ongoing substantial financial obligations

to a specially designated narcotics

trafficker may nonetheless be a basis for

subsequent designation of the

purchaser, if the transaction is

determined materially to assist in or

provide financial support for the

narcotics trafficking activities of

specially designated narcotics traffickers

for purposes of § 536.312(b)(2). For

example, any acquisition transaction

resulting in a direct cash transfer to or

other enrichment of a specially

designated narcotics trafficker could

lead to designation of the purchaser.

Mere change in name of an entity will

not be considered as constituting a

change of the entity’s status.

§ 536.409 Credit extended and cards

issued by U.S. financial institutions.

The prohibition in § 536.201 on

dealing in property in which a specially

designated narcotics trafficker has an

interest prohibits U.S. financial

institutions from performing under any

existing credit agreements, including,

but not limited to, charge cards, debit

cards, or other credit facilities issued by

a U.S. financial institution to a person

designated under this part.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

§ 536.501 Effect of license or

authorization.

(a) No license or other authorization

contained in this part, or otherwise

issued by or under the direction of the

Director of the Office of Foreign Assets
Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations 9965

Control, shall be deemed to authorize or

validate any transaction effected prior to

the issuance of the license, unless

specifically provided in such license or

authorization.

(b) No regulation, ruling, instruction,

or license authorizes any transaction

prohibited under this part unless the

regulation, ruling, instruction, or license

is issued by the Office of Foreign Assets

Control and specifically refers to this

part. No regulation, ruling, instruction,

or license referring to this part shall be

deemed to authorize any transaction

prohibited by any provision of this

chapter unless the regulation, ruling,

instruction or license specifically refers

to such provision.

(c) Any regulation, ruling, instruction,

or license authorizing any transaction

otherwise prohibited under this part has

the effect of removing a prohibition or

prohibitions contained in this part from

the transaction, but only to the extent

specifically stated by its terms. Unless

the regulation, ruling, instruction, or

license otherwise specifies, such an

authorization does not create any right,

duty, obligation, claim, or interest in, or

with respect to, any property which

would not otherwise exist under

ordinary principles of law.

§ 536.502 Exclusion from licenses and

authorizations.

The Director of the Office of Foreign

Assets Control reserves the right to

exclude any person, property, or

transaction from the operation of any

license, or from the privileges therein

conferred, or to restrict the applicability

thereof with respect to particular

persons, property, transactions, or

classes thereof. Such action shall be

binding upon all persons receiving

actual or constructive notice of such

exclusion or restriction.

§ 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. This

authorization is subject to the condition

that written notification from the U.S.

financial institution receiving an

authorized payment or transfer is

furnished to the Compliance Programs

Division, Office of Foreign Assets

Control, U.S. Treasury Department,

1500 Pennsylvania Avenue, NW—

Annex, Washington, DC 20220, within

10 days from the value date of the

payment or transfer. This notification

shall confirm that the payment or

transfer has been deposited into a

blocked account pursuant to this section

and § 536.203 and shall provide the

account number, the name and address

of the person in whose name the

account is held and, if the account party

is not a specially designated narcotics

trafficker, the name of the specially

designated narcotics trafficker having an

interest in the account, the name and

address of the transferee U.S. financial

institution, the name and address of the

transferor financial institution, the

amount of the payment or transfer, the

name and telephone number of a

contact person at the transferee financial

institution from whom compliance

information may be obtained, and the

name and telephone number of the

person, registered with the Office of

Foreign Assets Control pursuant to

§ 536.603, responsible for the

administration of blocked assets at the

transferee financial institution from

whom records on blocked assets may be

obtained.

(b) This section does not authorize

any transfer from a blocked account

within the United States to an account

held outside the United States.

§ 536.504 Investment and reinvestment of

certain funds.

(a) U.S. financial institutions are

hereby authorized and directed to invest

and reinvest assets held in blocked

accounts in the name of a specially

designated narcotics trafficker, subject

to the following conditions:

(1) The assets representing such

investments and reinvestments are

credited to a blocked account or sub–

account which is in the name of the

specially designated narcotics trafficker

and which is located in the United

States or within the possession or

control of a U.S. person; and

(2) The proceeds of such investments

and reinvestments are not credited to a

blocked account or sub–account under

any name or designation which differs

from the name or designation of the

specific blocked account or sub–account

in which such funds or securities were

held; and

(3) No immediate financial or

economic benefit or access accrues (e.g.,

through pledging or other use) to the

specially designated narcotics trafficker.

(b)(1) U.S. persons seeking to avail

themselves of this authorization must

register with the Office of Foreign

Assets Control, Blocked Assets Division,

before undertaking transactions

authorized under this section.

(2) Transactions conducted pursuant

to this section must be reported to the

Office of Foreign Assets Control,

Blocked Assets Division, in a report

filed no later than 10 business days

following the last business day of the

month in which the transactions

occurred.

§ 536.505 Entries in certain accounts for

normal service charges authorized.

(a) U.S. financial institutions are

hereby authorized to debit any blocked

account with such U.S. financial

institution in payment or

reimbursement for normal service

charges owed to such U.S. financial

institution by the owner of such blocked

account.

(b) As used in this section, the term

normal service charge shall include

charges in payment or reimbursement

for interest due; cable, telegraph, or

telephone charges; postage costs;

custody fees; small adjustment charges

to correct bookkeeping errors; and, but

not by way of limitation, minimum

balance charges, notary and protest fees,

and charges for reference books,

photostats, credit reports, transcripts of

statements, registered mail, insurance,

stationery and supplies, check books,

and other similar items.

§ 536.506 Provision of certain legal

services authorized.

(a) The provision to or on behalf of a

specially designated narcotics trafficker

of the legal services set forth in

paragraph (b) of this section is

authorized, provided that all receipt of

payment therefor must be specifically

licensed.

(b) Specific licenses may be issued, on

a case–by–case basis, authorizing

receipt of payment of professional fees

and reimbursement of incurred

expenses for the following legal services

by U.S. persons to a specially

designated narcotics trafficker:

(1) Provision of legal advice and

counseling on the requirements of and

compliance with the laws of any

jurisdiction within the United States,

provided that such advice and

counseling is not provided to facilitate

transactions that would violate any of

the prohibitions contained in this part;

(2) Representation of a specially

designated narcotics trafficker when

named as a defendant in or otherwise

made a party to domestic United States

legal, arbitration, or administrative

proceedings;

(3) Initiation of domestic United

States legal, arbitration, or

administrative proceedings in defense of

property interests subject to U.S.
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jurisdiction of a specially designated

narcotics trafficker;

(4) Representation before any federal

or state agency with respect to the

imposition, administration, or

enforcement of United States sanctions

against significant narcotics traffickers

centered in Colombia or specially

designated narcotics traffickers; and

(5) Provision of legal services in any

other context in which prevailing

United States law requires access to

legal counsel at public expense.

(c) The provision of any other legal

services to a specially designated

narcotics trafficker, not otherwise

authorized in or exempted by this part,

requires the issuance of a specific

license.

(d) Entry into a settlement agreement

affecting property or interests in

property of a specially designated

narcotics trafficker or the enforcement

of any lien, judgment, arbitral award,

decree, or other order through

execution, garnishment or other judicial

process purporting to transfer or

otherwise alter or affect a property

interest of a specially designated

narcotics trafficker is prohibited unless

specifically licensed in accordance with

§ 536.202(e).

§ 536.507 Authorization of emergency

medical services.

The provision of nonscheduled

emergency medical services to a

specially designated narcotics trafficker

located in the United States is

authorized, provided that any payment

for such services requires prior

authorization by specific license.

Subpart F—Reports

§ 536.601 Required records.

(a) Except as otherwise provided,

every person engaging in any

transaction subject to the provisions of

this part shall keep a full and accurate

record of each 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 subject to

§ 536.201 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.

(b) Any person, other than an

individual, required to maintain records

pursuant to this section, must designate

an individual to be responsible for

providing information concerning such

records to the Office of Foreign Assets

Control when so requested.

§ 536.602 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, complete

information relative to any transaction,

regardless of whether such transaction

is effected pursuant to license or

otherwise, subject to the provisions of

this part. Such reports may be required

to 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 person required to

make such reports. Reports with respect

to transactions may be required either

before or after such transactions are

completed. The Director of Foreign

Assets Control 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.

§ 536.603 Registration of persons holding

blocked property subject to § 536.201.

(a) Any individual holding property

subject to § 536.201 must register with

the Office of Foreign Assets Control,

Blocked Assets Division, by the later of

March 17, 1997, or within 10 days after

the date such property is received or

becomes subject to § 536.201.

(b) Any person, other than an

individual, holding property subject to

§ 536.201 must register the name, title,

address, and telephone number of the

individual designated under

§ 536.601(b) to be responsible for the

administration of blocked assets, from

whom the Office of Foreign Assets

Control can obtain information and

records. The registration shall be sent to

the Blocked Assets Division, Office of

Foreign Assets Control, U.S. Treasury

Department, 1500 Pennsylvania

Avenue, NW—Annex, Washington, DC

20220, by the later of March 17, 1997,

or, unless notification is given pursuant

to § 536.503, 10 days after the date such

property is received or becomes subject

to § 536.201.

Subpart G—Penalties

§ 536.701 Penalties.

(a) Attention is directed to section 206

of the International Emergency

Economic Powers Act (50 U.S.C. 1705

— the ‘‘Act’’), which is applicable to

violations of the provisions of any

license, ruling, regulation, order,

direction or instruction issued by or

pursuant to the direction or

authorization of the Secretary of the

Treasury pursuant to this part or

otherwise under the Act. Section 206 of

the Act, as adjusted pursuant to the

Federal Civil Penalties Inflation

Adjustment Act of 1990 (Pub. L. 101–

410, as amended, 28 U.S.C. 2461 note),

provides that:

(1) A civil penalty of not to exceed

$11,000 per violation may be imposed

on any person who violates any license,

order, or regulation issued under the

Act;

(2) Whoever willfully violates any

license, order, or regulation issued

under the Act shall, upon conviction, be

fined not more than $50,000, or, if a

natural person, may be imprisoned for

not more than ten years, or both; and

any officer, director, or agent of any

corporation who knowingly participates

in such violation may be punished by a

like fine, imprisonment or both.

(b) The criminal penalties provided in

the Act are subject to increase pursuant

to 18 U.S.C. 3571.

(c) Attention is also directed to 18

U.S.C. 1001, which provides that

whoever, in any matter within the

jurisdiction of any department or agency

of the United States, knowingly and

willfully falsifies, conceals or covers up

by any trick, scheme, or device a

material fact, or makes any false,

fictitious or fraudulent statements or

representations or makes or uses any

false writing or document knowing the

same to contain any false, fictitious or

fraudulent statement or entry, shall be

fined under title 18, United States Code,

or imprisoned not more than five years,

or both.

(d) Violations of this part may also be

subject to relevant provisions of other

applicable laws.

§ 536.702 Prepenalty notice.

(a) When required. If the Director of

the Office of Foreign Assets Control has

reasonable cause to believe that there

has occurred a violation of any

provision of this part or a violation of

the provisions of any license, ruling,

regulation, order, direction or

instruction issued by or pursuant to the

direction or authorization of the

Secretary of the Treasury pursuant to

this part or otherwise under the
Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations 9967

International Emergency Economic

Powers Act, and the Director determines

that further proceedings are warranted,

he shall issue to the person concerned

a notice of his intent to impose a

monetary penalty. The prepenalty

notice may be issued whether or not

another agency has taken any action

with respect to this matter.

(b) Contents—(1) Facts of violation.

The prepenalty notice shall describe the

violation, specify the laws and

regulations allegedly violated, and state

the amount of the proposed monetary

penalty.

(2) Right to respond. The prepenalty

notice also shall inform the respondent

of respondent’s right to respond to the

notice within 30 days of its mailing as

to why a monetary penalty should not

be imposed, or, if imposed, why it

should be in a lesser amount than

proposed.

§ 536.703 Response to prepenalty notice.

(a) Time within which to respond. The

respondent shall have 30 days from the

date of mailing of the prepenalty notice

to respond in writing to the Director of

the Office of Foreign Assets Control.

(b) Form and contents of written

response. The written response need not

be in any particular form, but shall

contain information sufficient to

indicate that it is in response to the

prepenalty notice. It should respond to

the allegations in the prepenalty notice

and set forth the reasons why the person

believes the penalty should not be

imposed or, if imposed, why it should

be in a lesser amount than proposed.

(c) Informal settlement. In addition or

as an alternative to a written response

to a prepenalty notice pursuant to this

section, the respondent or respondent’s

representative may contact the Office of

Foreign Assets Control as advised in the

prepenalty notice to propose the

settlement of allegations contained in

the prepenalty notice and related

matters. In the event of settlement at the

prepenalty stage, the prepenalty notice

will be withdrawn, the respondent is

not required to take a written position

on allegations contained in the

prepenalty notice, and the Office of

Foreign Assets Control will make no

final determination as to whether a

violation occurred. The amount

accepted in settlement of allegations in

a prepenalty notice may vary from the

civil penalty that might finally be

imposed in the event of a formal

determination of violation. In the event

no settlement is reached, the 30–day

period specified in paragraph (a) of this

section for written response to the

prepenalty notice remains in effect

unless additional time is granted by the

Office of Foreign Assets Control.

§ 536.704 Penalty notice.

(a) No violation. If, after considering

any written response to the prepenalty

notice and any relevant facts, the

Director of the Office of Foreign Assets

Control determines that there was no

violation by the respondent named in

the prepenalty notice, the Director

promptly shall notify the respondent in

writing of that determination and that

no monetary penalty will be imposed.

(b) Violation. If, after considering any

written response to the prepenalty

notice and any relevant facts, the

Director of the Office of Foreign Assets

Control determines that there was a

violation by the respondent named in

the prepenalty notice, the Director

promptly shall issue a written notice of

the imposition of the monetary penalty

or other available disposition on the

respondent.

§ 536.705 Administrative collection;

referral to United States Department of

Justice.

In the event that the respondent does

not pay the penalty imposed pursuant to

this part or make payment arrangements

acceptable to the Director of the Office

of Foreign Assets Control within 30

days of the mailing of the written notice

of the imposition of the penalty, the

matter may be referred for

administrative collection measures or to

the United States Department of Justice

for appropriate action to recover the

penalty in a civil suit in a Federal

district court.

Subpart H—Procedures

§ 536.801 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 part. All such licenses in effect on

the date of publication are set forth in

subpart E of this part. 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 part 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 part 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 the 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. 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 or discuss or

argue the application 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
9968 Federal Register / Vol. 62, No. 43 / Wednesday, March 5, 1997 / Rules and Regulations

specifically designated person, agency,

or instrumentality.

(7) Address. License applications,

reports, and inquiries should be

addressed to the appropriate section 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.

§ 536.802 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.

§ 536.803 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.

§ 536.804 Rulemaking.

(a) All rules and other public

documents are issued by the Secretary

of the Treasury upon recommendation

of 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. Wherever

possible, however, it is the practice of

the Office of Foreign Assets Control to

receive written submissions or hold

informal consultations with interested

parties before the issuance of any rule

or other public document.

(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.

§ 536.805 Delegation by the Secretary of

the Treasury.

Any action which the Secretary of the

Treasury is authorized to take pursuant

to Executive Order 12978 or any further

executive orders relating to the national

emergency declared in Executive Order

12978 may be taken by the Director of

the Office of Foreign Assets Control, or

by any other person to whom the

Secretary of the Treasury has delegated

authority so to act.

§ 536.806 Rules governing availability of

information.

(a) The records of the Office of

Foreign Assets Control 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,

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. 552

and published at 31 CFR part 1.

(b) The records of the Office of

Foreign Assets Control required by the

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

available to an 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 the Narcotics

Trafficking Sanctions Regulations 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, D.C. 20220, or by calling

202/622–2520.

Subpart I—Paperwork Reduction Act

§ 536.901 Paperwork Reduction Act notice.

The information collection

requirements in §§ 536.503, 536.504,

subpart F, and § 536.801 have been

approved by the Office of Management

and Budget under the Paperwork

Reduction Act and assigned control

number 1505–0163.

Dated: February 7, 1997.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: February 18, 1997.

James E. Johnson,

Assistant Secretary (Enforcement).

[FR Doc. 97–5299 Filed 2–28–97; 12:34 pm]

BILLING CODE 4810–25–F

DEPARTMENT OF DEFENSE

Corps of Engineers; Department of the

Army

33 CFR Part 334

Danger Zones and Restricted Areas,

National Guard Training Center, Sea

Girt, NJ

AGENCY: U.S. Army Corps of Engineers,

DoD.

ACTION: Final rule.

SUMMARY: The Corps is revoking the

regulations which establish a danger

zone in the waters of the Atlantic Ocean

at the New Jersey National guard

Training Vente, Sea Girt, New Jersey.

According to the State of New Jersey,

the danger zone is no longer needed due

to the improvements made at the small

arms firing range located at Sea Girt.

The danger zone was established to

protect the public from the hazards

associated with the possibility of an

errant round or ricochet from the range

impacting into the waters offshore. The

revocation of the danger zone is

essential to allow a beach nourishment

project to proceed and formalize full

public use of the water areas offshore of

the National Guard Training Center. The

revocation of the danger zone

regulations will not affect any other

Federal, State, or local regulations in

that area.

EFFECTIVE DATE: March 20, 1997.

ADDRESSES: HQUSACE, CECW–OR,

Washington, D.C. 20314–1000.

FOR FURTHER INFORMATION CONTACT:

Mr. Ralph Eppard, Regulatory Branch,

CECW–OR at (202) 761–1783, or Mr.

Richard Tomer of the New York District

at (212) 264–9053.

SUPPLEMENTARY INFORMATION: Pursuant

to its authorities in Section 7 of the

Rivers and Harbors Act of 1917 (40 Stat.

266; 33 U.S.C. 1) and Chapter XIX of the

Army Appropriations Act of 1919 (40

Stat. 892; 33 U.S.C. 3), the Corps is

amending the regulations in 33 CFR Part

334.90. The National Guard Training

Center is located adjacent to the

federally authorized share protection

project identified as ‘‘Ashbury Park to

Manasquan South Reach’’. One entire

borrow area and a portion of another

borrow are that are designated to be

used as a source of sand for part of the

beach restoration and storm damage

protection that will be provided to this

area located within the limits of the

danger zone. The danger zone

regulations in 33 CFR 334.90 prohibits

entry by vessels into the danger zone

during operation of the range. The State