Federal Register / Vol. 75, No. 176 / Monday, September 13, 2010 / Rules and Regulations 55463 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (‘‘OFAC’’) is implementing 

Executive Order 13350 of July 29, 2004, 

which terminated the national 

emergency declared with respect to Iraq 

in Executive Order 12722 of August 2, 

1990, and revoked that and subsequent 

Executive orders, by removing the Iraqi 

Sanctions Regulations from the Code of 

Federal Regulations. 

DATES: Effective Date: September 13, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance, 

Outreach & Implementation, tel.: 202/ 

622–2490, Assistant Director for 

Licensing, tel.: 202/622–2480, Assistant 

Director for Policy, tel.: 202/622–4855, 

or Chief Counsel (Foreign Assets 

Control), tel.: 202/622–2410 (not toll 

free numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site 

(http: 

//www.treas.gov/ofac). Certain general 

information pertaining to OFAC’s 

sanctions programs also is available via 

facsimile through a 24-hour fax-ondemand service, tel.: 202/622–0077. 

Background 

As a result of the removal of the 

regime of Saddam Hussein and other 

developments in Iraq, the President 

issued Executive Order 13350 on July 

29, 2004 (69 FR 46055, July 30, 2004). 

Executive Order 13350 terminated the 

national emergency declared with 

respect to Iraq in Executive Order 12722 

of August 2, 1990. In addition, 

Executive Order 13350 revoked 

Executive Order 12722, Executive Order 

12724 of August 9, 1990, Executive 

Order 12743 of January 18, 1991, 

Executive Order 12751 of February 14, 

1991, and Executive Order 12817 of 

October 21, 1992. These Executive 

orders were all in furtherance of the 

national emergency declared in 

Executive Order 12722. 

In Executive Order 12722, the 

President ordered the blocking of all 

property and interests in property that 

were in the United States or that came 

within the possession or control of 

United States persons, including 

overseas branches, of the Government of 

Iraq, its agencies, instrumentalities, and 

controlled entities, and the Central Bank 

of Iraq (55 FR 31803, August 3, 1990). 

Executive Order 12722 prohibited the 

importation of any goods or services of 

Iraqi origin into the United States and 

the exportation of any goods, 

technology, or services from the United 

States to Iraq. Executive Order 12722 

also prohibited transactions relating to 

transportation and travel to or from Iraq 

by United States citizens or permanent 

resident aliens. The subsequent 

Executive orders took various additional 

steps with respect to the situation in 

Iraq. 

Section 207(a) of the International 

Emergency Economic Powers Act 

(‘‘IEEPA’’) (50 U.S.C. 1706(a)) contains a 

provision that allows the President to 

continue to prohibit transactions 

involving property in which a foreign 

country or national thereof has an 

interest after a national emergency has 

been terminated if the President 

determines that the continuation of such 

a prohibition with respect to that 

property is necessary on account of 

claims involving such country or its 

nationals. Pursuant to section 207(a) of 

IEEPA, the President determined in 

Section 1 of Executive Order 13350 that 

continuation of prohibitions with regard 

to transactions involving property 

blocked pursuant to Executive Orders 

12722 or 12724 that continued to be 

blocked as of July 30, 2004, was 

necessary on account of claims 

involving Iraq. The new Iraq 

Stabilization and Insurgency Sanctions 

Regulations, 31 CFR part 576, include a 

general license unblocking all remaining 

property blocked pursuant to Section 1 

of Executive Order 13350. See 31 CFR 

576.510. 

Please note that certain transactions 

relating to Iraq remain subject to the Iraq 

Stabilization and Insurgency 

Regulations, 31 CFR part 576, which 

implement Executive Order 13303 of 

May 22, 2003, Executive Order 13315 of 

August 28, 2003, Executive Order 13350 

of July 29, 2004, Executive Order 13364 

of November 29, 2004, and Executive 

Order 13438 of July 17, 2007. 

Accordingly, OFAC is removing the 

Iraqi Sanctions Regulations (the 

‘‘Regulations’’) in 31 CFR part 575. The 

removal of part 575 from 31 CFR 

chapter V does not affect ongoing 

enforcement proceedings or prevent the 

initiation of enforcement proceedings 

where the relevant statute of limitations 

has not run. 

Executive Order 12866, Administrative 

Procedure Act, and Regulatory 

Flexibility Act 

Because 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. 

Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because this rule does not 

impose information collection 

requirements that would require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501 et seq. 

List of Subjects in 31 CFR Part 575 

Administrative practice and 

procedure, Banks, Banking, Blocking of 

assets, Exports, Foreign trade, Imports, 

Iraq, Oil imports, Penalties, Petroleum, 

Petroleum products, Reporting and 

recordkeeping requirements, Specially 

designated nationals, Terrorism, Travel 

restrictions. 

PART 575—[REMOVED] 

■ Pursuant to 50 U.S.C. 1701 et seq. and 

Executive Order 13350, the Office of 

Foreign Assets Control amends 31 CFR 

chapter V by removing part 575 for the 

reasons set forth in the preamble. 

Dated: September 1, 2010. 

Adam J. Szubin, 

Director, Office of Foreign Assets Control, 

Department of the Treasury. 

Approved: September 2, 2010. 

Stuart A. Levey, 

Under Secretary, Office of Terrorism and 

Financial Intelligence, Department of the 

Treasury. 

[FR Doc. 2010–22548 Filed 9–10–10; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 576 

Iraq Stabilization and Insurgency 

Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (‘‘OFAC’’) is adding the Iraq 

Stabilization and Insurgency Sanctions 

Regulations as a new part to the Code 

of Federal Regulations, to implement 

Executive Order 13303 of May 22, 2003, 

Executive Order 13315 of August 28, 

2003, Executive Order 13350 of July 29, 

2004, Executive Order 13364 of 

November 29, 2004, and Executive 

Order 13438 of July 17, 2007. 


srobinson on DSKHWCL6B1PROD with RULES
55464 Federal Register / Vol. 75, No. 176 / Monday, September 13, 2010 / Rules and Regulations 

DATES: Effective Date: September 13, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance, 

Outreach & Implementation, tel.: 202/ 

622–2490, Assistant Director for 

Licensing, tel.: 202/622–2480, Assistant 

Director for Policy, tel.: 202/622–4855, 

or Chief Counsel (Foreign Assets 

Control), tel.: 202/622–2410 (not toll 

free numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site (http: 

//www.treas.gov/ofac). Certain general 

information pertaining to OFAC’s 

sanctions programs also is available via 

facsimile through a 24-hour fax-ondemand service, tel.: 202/622–0077. 

Background 

Following the removal from power of 

the regime of Saddam Hussein in Iraq, 

the President issued Executive Order 

13303 of May 22, 2003, under the 

authority of, inter alia, the International 

Emergency Economic Powers Act, 50 

U.S.C. 1701 et seq. (‘‘IEEPA’’), the 

National Emergencies Act, 50 U.S.C. 

1601 et seq. (‘‘NEA’’), and section 5 of 

the United Nations Participation Act, 22 

U.S.C. 287c (‘‘UNPA’’). In Executive 

Order 13303, the President found that 

the threat of attachment or other judicial 

process against the Development Fund 

for Iraq, Iraqi petroleum and petroleum 

products, and interests therein, and 

proceeds, obligations, or financial 

instruments arising from or related to 

the sale or marketing thereof obstructed 

the orderly reconstruction of Iraq, the 

restoration and maintenance of peace 

and security in the country, and the 

development of political, 

administrative, and economic 

institutions in Iraq. The President 

further determined that this situation 

constituted an unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States and declared a national 

emergency to deal with that threat. 

To deal with this emergency, section 

1 of Executive Order 13303 provided 

that, unless licensed or otherwise 

authorized, any attachment, judgment, 

execution, or other judicial process is 

prohibited and shall be deemed null 

and void with respect to (1) the 

Development Fund for Iraq, and (2) all 

Iraqi petroleum and petroleum 

products, and interests therein, and 

proceeds, obligations, or any financial 

instruments of any nature arising from 

or related to the sale or marketing 

thereof, and interests therein, in which 

any foreign country or national thereof 

has any interest, that are in, or come 

within, the United States, or that are in, 

or come within, the possession or 

control of United States persons. 

Executive Order 13303 also provided 

that two earlier Executive orders that 

had imposed comprehensive sanctions 

against Iraq following the invasion of 

Kuwait, including a trade embargo and 

a blocking of Iraqi government assets 

(i.e., Executive Order 12722 of August 2, 

1990, and Executive Order 12724 of 

August 9, 1990), as well as a more 

recent Executive order confiscating and 

vesting title to certain blocked Iraqi 

property (i.e., Executive Order 13290 of 

March 20, 2003) were not applicable to 

the property and interests in property 

described in section 1. 

On August 28, 2003, the President 

issued Executive Order 13315, under 

the authority of, inter alia, IEEPA, the 

NEA, and the UNPA, and in view of 

United Nations Security Council 

Resolution (‘‘UNSCR’’) 1483 of May 22, 

2003. The President issued this Order to 

expand the scope of the national 

emergency declared in Executive Order 

13303 to address the unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States posed by obstacles to the orderly 

reconstruction of Iraq, the restoration 

and maintenance of peace and security 

in that country, and the development of 

its political, administrative, and 

economic institutions. The President 

found that the removal of Iraqi property 

from the country by certain senior 

officials of the former Iraqi regime and 

their family members constituted such 

an obstacle. The President determined 

that the United States was engaged in 

armed hostilities and that it was in the 

interest of the United States to 

confiscate certain additional property of 

the former Iraqi regime, certain senior 

officials of the former regime, 

immediate family members of those 

officials, and controlled entities. 

Section 1 of Executive Order 13315 

blocked all property and interests in 

property in the United States or in the 

possession or control of United States 

persons, including any overseas branch, 

of: (1) The former Iraqi regime, (2) its 

state bodies, corporations, or agencies, 

(3) persons listed in the Annex to the 

Order, and (4) persons determined by 

the Secretary of the Treasury, in 

consultation with the Secretary of State, 

to be senior officials of the former Iraqi 

regime or their immediate family 

members or to be owned or controlled 

by, or acting or purporting to act for or 

on behalf of, directly or indirectly, any 

of the persons listed in the Annex or 

determined to be subject to the Order. 

Section 2 of Executive Order 13315 

authorized the Secretary of the 

Treasury, in consultation with the 

Secretary of State, to confiscate property 

blocked pursuant to section 1 and 

determined to belong to a person, 

organization, or country that had 

planned, authorized, aided, or engaged 

in armed hostilities against the United 

States. Section 2 directed that all right, 

title, and interest in such confiscated 

property shall vest in the Department of 

the Treasury, and such vested property 

shall promptly be transferred to the 

Development Fund for Iraq. 

Section 3 of Executive Order 13315 

prohibited any transaction by a United 

States person or within the United 

States that evades or avoids, has the 

purpose of evading or avoiding, or 

attempts to violate, any of the 

prohibitions set forth in the Order, as 

well as any conspiracy formed to violate 

such prohibitions. Section 4 defined 

certain terms used in the Order. Section 

5 set forth the President’s determination 

that the making of donations of the type 

specified in section 203(b)(2) of IEEPA 

(i.e., donations of articles, such as food, 

clothing, and medicine, intended to be 

used to relieve human suffering) by or 

to persons determined to be subject to 

the sanctions would seriously impair 

his ability to deal with the national 

emergency declared in Executive Order 

13303 and expanded in scope in this 

Order and would endanger Armed 

Forces of the United States that were 

engaged in hostilities. Accordingly, the 

President prohibited the donation of 

such items unless authorized by OFAC. 

On July 29, 2004, the President issued 

Executive Order 13350, which, because 

of the removal of the regime of Saddam 

Hussein and other developments, 

terminated the national emergency that 

had been declared in Executive Order 

12722 with respect to Iraq, and revoked 

that Order, Executive Order 12724, and 

subsequent Orders that were based on 

the national emergency declared in 

Executive Order 12722. In Executive 

Order 13350, the President also took 

certain additional steps to deal with the 

national emergency declared in 

Executive Order 13303 and expanded in 

Executive Order 13315, which remains 

in effect. 

Among other things, the President’s 

termination of the national emergency 

that had been declared in Executive 

Order 12722 and his revocation of that 

and related Orders ended, as of July 30, 

2004, the import and export 

prohibitions that had been imposed 

pursuant to Executive Orders 12722 and 

12724 and related regulations, including 


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Federal Register / Vol. 75, No. 176 / Monday, September 13, 2010 / Rules and Regulations 55465 

the Iraqi Sanctions Regulations, 31 CFR 

part 575. As a practical matter, most 

import and export transactions had been 

authorized by the provisions of subpart 

E of part 575 since May 23, 2003. OFAC 

has now removed the Iraqi Sanctions 

Regulations from 31 CFR chapter V 

effective September 13, 2010. 

Section 1 of Executive Order 13350 

provided for the continuation of 

prohibitions under section 207 of 

IEEPA, 50 U.S.C. 1706, with regard to 

transactions involving property blocked 

pursuant to Executive Orders 12722 and 

12724 that continued to be blocked as 

of July 30, 2004. In addition, section 1 

provided that the termination of the 

national emergency declared in 

Executive Order 12722 shall not affect 

any action taken or proceeding pending 

but not finally concluded or determined 

as of July 30, 2004, any action or 

proceeding based on any act committed 

prior to such date, or any rights or 

duties that matured or penalties that 

were incurred prior to such date. 

Accordingly, property blocked pursuant 

to Executive Orders 12722 and 12724 as 

of July 30, 2004, remained blocked. 

Section 2 replaced and superseded 

the Annex to Executive Order 13315 in 

its entirety with the Annex to Executive 

Order 13350. Section 3 amended 

Executive Order 13290 by substituting 

the national emergency declared in 

Executive Order 13303 and expanded in 

Executive Order 13315 for the one 

declared in Executive Order 12722. 

Section 4 prohibited the trade in or 

transfer of ownership or possession of 

Iraqi cultural property or other items of 

archeological, historical, cultural, rare 

scientific, and religious importance that 

were illegally removed, or for which a 

reasonable suspicion existed that they 

were illegally removed, from the Iraq 

National Museum, the National Library, 

and other locations in Iraq since August 

6, 1990, unless licensed or authorized 

pursuant to Executive Order 13350 or 

otherwise consistent with U.S. law. 

Section 5 prohibited the making of 

donations of the type specified in 

section 203(b)(2) of IEEPA by or to 

persons determined to be subject to the 

sanctions imposed by Executive Order 

13315, as amended by Executive Order 

13350. 

The President issued Executive Order 

13364 on November 29, 2004, further 

modifying the scope of the national 

emergency that was declared in 

Executive Order 13303, expanded in 

Executive Order 13315, and modified in 

Executive Order 13350. The President 

found that the threat of attachment or 

other judicial process against the 

Central Bank of Iraq constituted an 

obstacle to the orderly reconstruction of 

Iraq, the restoration and maintenance of 

peace and security in that country, and 

the development of political, 

administrative, and economic 

institutions in Iraq. Accordingly, 

Executive Order 13364 amended section 

1 of Executive Order 13303 to extend 

that section’s protection from 

attachment, judgment, execution, or 

other judicial process to any accounts, 

assets, investments, or any other 

property of any kind owned by, 

belonging to, or held by the Central 

Bank of Iraq, or held or otherwise 

controlled by any financial institution 

in the name or on behalf of, or otherwise 

for, the Central Bank of Iraq. 

In addition, consistent with UNSCRs 

1483 and 1546, dated May 22, 2003, and 

June 8, 2004, respectively, Executive 

Order 13364 amended section 1 of 

Executive Order 13303 to limit the 

immunity provided therein in two ways. 

First, it provided that the immunity 

from attachment for Iraqi petroleum and 

petroleum products and interests 

therein shall apply only until title 

passes to the initial purchaser. Second, 

it restricted the overall prohibition 

against attachment, judgment, 

execution, or other judicial process so 

that the immunity from attachment shall 

not apply with respect to any final 

judgment arising out of a contractual 

obligation entered into by the 

Government of Iraq, including any 

agency or instrumentality thereof, after 

June 30, 2004. 

Finally, on July 17, 2007, the 

President issued Executive Order 13438, 

finding that acts of violence threatening 

the peace and stability of Iraq and 

undermining efforts to promote 

economic reconstruction and political 

reform in Iraq and to provide 

humanitarian assistance to the Iraqi 

people constitute an unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States. Accordingly, he determined that 

it was in the interests of the United 

States to take additional steps with 

respect to the national emergency 

declared in Executive Order 13303, 

expanded in Executive Order 13315, 

and relied upon for additional steps in 

Executive Orders 13350 and 13364. 

Section 1 of Executive Order 13438 

blocked the property and interests in 

property in the United States or in the 

possession or control of United States 

persons, including any overseas branch, 

of any person determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State 

and the Secretary of Defense: (i) To have 

committed, or to pose a significant risk 

of committing, an act of violence that 

has the purpose or effect of (A) 

threatening the peace or stability of Iraq 

or the Government of Iraq, or (B) 

undermining efforts to promote 

economic reconstruction and political 

reform in Iraq or to provide 

humanitarian assistance to the Iraqi 

people; (ii) to have materially assisted, 

sponsored, or provided financial, 

material, logistical, or technical support 

for, or goods or services in support of, 

such an act or acts of violence or any 

person whose property and interests in 

property are blocked pursuant to the 

Order; or (iii) to be owned or controlled 

by or to have acted or purported to act 

for or on behalf of, directly or indirectly, 

any person whose property and interests 

in property are blocked pursuant to the 

Order. The prohibitions in section 1 

include, but are not limited to, the 

making of any contribution or provision 

of funds, goods, or services by, to, or for 

the benefit of any person whose 

property and interests in property have 

been blocked, and the receipt of any 

contribution or provision of funds, 

goods, or services from any such person. 

Acting under authority delegated to 

the Secretary of the Treasury by 

Executive Orders 13303, 13315, 13350, 

13364 and 13438, OFAC is 

promulgating these Iraq Stabilization 

and Insurgency Sanctions Regulations, 

31 CFR part 576 (the ‘‘Regulations’’), to 

implement the provisions of those 

orders. 

Subpart A of the Regulations clarifies 

the relation of this part to other laws 

and regulations. Subpart B of the 

Regulations sets forth: (a) The 

prohibitions contained in section 1 of 

Executive Order 13303, as amended by 

Executive Order 13364; (b) the 

prohibitions contained in section 1 of 

Executive Order 13315, as amended by 

Executive Order 13350; (c) the 

prohibitions contained in sections 1 and 

4 of Executive Order 13350; and (d) the 

prohibitions contained in section 1 of 

Executive Order 13438. See §§ 576.201, 

576.206, 576.208. Persons identified in 

the Annex to Executive Order 13315, as 

amended by Executive Order 13350, or 

designated by or under the authority of 

the Secretary of the Treasury pursuant 

to Executive Orders 13315 or 13438 are 

referred to throughout the Regulations 

as ‘‘persons whose property and 

interests in property are blocked 

pursuant to § 576.201(a).’’ The names of 

persons listed in or designated pursuant 

to Executive Orders 13315, 13350, and 

13438 are published on OFAC’s 

Specially Designated Nationals and 

Blocked Persons List, which is 

accessible via OFAC’s Web site. Those 

names also are published in the Federal 

Register as they are added to the List, 

and the entire List is republished 


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55466 Federal Register / Vol. 75, No. 176 / Monday, September 13, 2010 / Rules and Regulations 

annually as Appendix A to 31 CFR 

chapter V. 

Subpart C of the Regulations defines 

key terms used throughout this part. 

Subpart D of the Regulations sets forth 

interpretive sections regarding other 

provisions in the Regulations. Section 

576.411 of subpart D interprets a 

provision unique to Part 576, § 576.208, 

which provides that the trade in or 

transfer of certain Iraqi cultural property 

is prohibited. OFAC may establish a 

violation of § 576.208 separate from, and 

independent of, other laws and 

regulations that prohibit the trade in or 

transfer of Iraqi cultural property. 

Section 576.411 states that the mere 

compliance with certain legal, 

administrative, or procedural 

requirements, such as those set forth by 

U.S. Customs and Border Protection, 

does not preclude a violation of 

§ 576.208. 

Transactions otherwise prohibited 

under the Regulations but found to be 

consistent with U.S. policy may be 

authorized by one of the general 

licenses contained in subpart E of the 

Regulations or by a specific license 

issued pursuant to the procedures 

described in subpart E of part 501 of 31 

CFR chapter V. In addition to the 

general licenses, subpart E of the 

Regulations also contains certain 

statements of licensing policy. In 

particular, OFAC may license or 

authorize, on a case-by-case basis, 

judicial process with regard to property 

and interests in property protected by 

§ 576.206(a) to satisfy liability for 

damages assessed in connection with an 

ecological accident, including an oil 

spill. See § 576.508. The language in 

§ 576.508 derives from UNSCR 1483, 

which requires all States to provide 

immunity to Iraqi petroleum, petroleum 

products, and natural gas in regard to 

any form of attachment, garnishment, or 

execution in their respective domestic 

legal systems, unless the proceeds are 

needed to satisfy liability for damages 

assessed in connection with an 

ecological accident that occurred after 

May 22, 2003. 

Subpart F of the Regulations refers to 

subpart C of part 501 for applicable 

recordkeeping and reporting 

requirements. Subpart G of the 

Regulations describes the civil and 

criminal penalties applicable to 

violations of the regulations, as well as 

the procedures governing the potential 

imposition of a civil monetary penalty. 

Subpart H of the Regulations refers to 

subpart D of part 501 for applicable 

provisions relating to administrative 

procedures and sets forth a delegation of 

authorities. Subpart I of the Regulations 

sets forth a Paperwork Reduction Act 

notice. 

Public Participation 

Because the Regulations involve a 

foreign affairs function, Executive Order 

12866 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 collections of information related 

to the Regulations are contained in 31 

CFR part 501 (the ‘‘Reporting, 

Procedures and Penalties Regulations’’). 

Pursuant to the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507), those 

collections of information have been 

previously approved by the Office of 

Management and Budget under 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 the collection of 

information displays a valid control 

number. 

List of Subjects in 31 CFR Part 576 

Administrative practice and 

procedure, Banks, Banking, Blocking of 

assets, Courts, Exports, Foreign trade, 

Imports, Iraq, Oil imports, Penalties, 

Petroleum, Petroleum products, 

Reporting and recordkeeping 

requirements, Specially designated 

nationals. 

■ For the reasons set forth in the 

preamble, the Department of the 

Treasury’s Office of Foreign Assets 

Control adds part 576 to 31 CFR chapter 

V to read as follows: 

PART 576—IRAQ STABILIZATION AND 

INSURGENCY SANCTIONS 

REGULATIONS 

Subpart A—Relation of This Part to Other 

Laws and Regulations 

Sec. 

576.101 Relation of this part to other laws 

and regulations. 

Subpart B—Prohibitions 

576.201 Prohibited transactions involving 

blocked property. 

576.202 Effect of transfers violating the 

provisions of this part. 

576.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

576.204 Expenses of maintaining blocked 

physical property; liquidation of blocked 

property. 

576.205 Evasions; attempts; conspiracies. 

576.206 Protection granted to the 

Development Fund for Iraq, Iraqi 

Petroleum and Petroleum Products, and 

the Central Bank of Iraq. 

576.207 Exemption for property controlled 

by the military forces of the United 

States and their coalition partners in 

Iraq. 

576.208 Prohibited transactions related to 

certain Iraqi cultural property. 

576.209 Exempt transactions. 

Subpart C—General Definitions 

576.301 Blocked account; blocked 

property. 

576.302 Development Fund for Iraq. 

576.303 Effective date. 

576.304 Entity. 

576.305 Former Iraqi regime. 

576.306 Information or informational 

materials. 

576.307 Interest. 

576.308 Iraqi petroleum and petroleum 

products. 

576.309 Licenses; general and specific. 

576.310 Government of Iraq. 

576.311 Person. 

576.312 Property; property interest. 

576.313 Transfer. 

576.314 UNSC Resolution 1483. 

576.315 United States. 

576.316 U.S. financial institution. 

576.317 United States person; U.S. person. 

Subpart D—Interpretations 

576.401 Reference to amended sections. 

576.402 Effect of amendment. 

576.403 Setoffs prohibited. 

576.404 Termination and acquisition of an 

interest in property. 

576.405 Transactions ordinarily incident to 

a licensed transaction. 

576.406 Provision of services. 

576.407 Offshore transactions. 

576.408 Payments from blocked accounts 

to satisfy obligations prohibited. 

576.409 Charitable contributions. 

576.410 Credit extended and cards issued 

by U.S. financial institutions. 

576.411 Prohibited transactions involving 

certain Iraqi cultural property. 

576.412 Entities owned by a person whose 

property and interests in property are 

blocked. 

Subpart E—Licenses, Authorizations, and 

Statements of Licensing Policy 

576.501 General and specific licensing 

procedures. 

576.502 Effect of license or authorization. 

576.503 Exclusion from licenses. 

576.504 Payments and transfers to blocked 

accounts in U.S. financial institutions. 

576.505 Entries in certain accounts for 

normal service charges authorized. 

576.506 Investment and reinvestment of 

certain funds. 

576.507 Provision of certain legal services 

authorized. 

576.508 Judicial process in legal 

proceedings involving ecological 

accidents. 

576.509 Authorization of emergency 

medical services. 

576.510 Unblocking certain blocked 

property. 


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576.511 Property controlled by the military 

forces of the United States and their 

coalition partners in Iraq. 

576.512 Transactions with certain blocked 

persons authorized. 

Subpart F—Reports 

576.601 Records and reports. 

Subpart G—Penalties 

576.701 Penalties. 

576.702 Pre-Penalty Notice; settlement. 

576.703 Penalty imposition. 

576.704 Administrative collection; referral 

to United States Department of Justice. 

Subpart H—Procedures 

576.801 Procedures. 

576.802 Delegation by the Secretary of the 

Treasury. 

Subpart I—Paperwork Reduction Act 

576.901 Paperwork Reduction Act notice. 

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. 110–96, 121 Stat. 1011; E.O. 

13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 

227; E.O. 13315, 68 FR 52315, 3 CFR, 2003 

Comp., p. 252; E.O. 13350, 69 FR 46055, 3 

CFR, 2004 Comp., p. 196; E.O. 13364, 69 FR 

70177, 3 CFR, 2004 Comp., p. 236; E.O. 

13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 

224. 

Subpart A—Relation of This Part to 

Other Laws and Regulations 

§ 576.101 Relation of this part to other 

laws and regulations. 

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. Actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. Differing foreign 

policy and national security 

circumstances 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. 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. 

Note to § 576.101: The Iraqi Sanctions 

Regulations, 31 CFR part 575, have been 

removed from 31 CFR chapter V. 

Subpart B—Prohibitions 

§ 576.201 Prohibited transactions 

involving blocked property. 

(a) All property and interests in 

property 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, of the former Iraqi regime or 

its state bodies, corporations, or 

agencies, or of the following persons are 

blocked and may not be transferred, 

paid, exported, withdrawn, or otherwise 

dealt in: 

(1) Persons listed in the Annex to 

Executive Order 13315 of August 28, 

2003, as amended by Executive Order 

13350 of July 29, 2004; and 

(2) Persons determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

(i) To be senior officials of the former 

Iraqi regime or their immediate family 

members; or 

(ii) To be owned or controlled by, or 

acting or purporting to act for or on 

behalf of, directly or indirectly, any of 

the persons whose property and 

interests in property are blocked 

pursuant to paragraphs (a)(1) or (a)(2) of 

this section; and 

(3) Persons determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State 

and the Secretary of Defense, 

(i) To have committed, or to pose a 

significant risk of committing, an act or 

acts of violence that have the purpose or 

effect of: 

(A) Threatening the peace or stability 

of Iraq or the Government of Iraq; or 

(B) Undermining efforts to promote 

economic reconstruction and political 

reform in Iraq or to provide 

humanitarian assistance to the Iraqi 

people; 

(ii) To have materially assisted, 

sponsored, or provided financial, 

material, logistical, or technical support 

for, or goods or services in support of, 

such an act or acts of violence or any 

person whose property and interests in 

property are blocked pursuant to 

paragraph (a)(3) of this section; or 

(iii) To be owned or controlled by, or 

to have acted or purported to act for or 

on behalf of, directly or indirectly, any 

person whose property and interests in 

property are blocked pursuant to 

paragraph (a)(3) of this section. 

Note 1 to paragraph (a) of § 576.201: The 

names of persons listed in or designated 

pursuant to Executive Order 13315, as 

amended by Executive Order 13350, or 

designated pursuant to Executive Order 

13438 of July 17, 2007, whose property and 

interests in property are blocked pursuant to 

paragraph (a) of this section, are published 

on the Office of Foreign Assets Control’s 

Specially Designated Nationals and Blocked 

Persons List (‘‘SDN’’ list) (which is accessible 

via the Office of Foreign Assets Control’s 

Web site), published in the Federal Register, 

and incorporated into Appendix A to this 

chapter with the identifier ‘‘[IRAQ2]’’ (for 

persons designated pursuant to paragraphs 

(a)(1) and (a)(2) of this section) or ‘‘[IRAQ3]’’ 

(for persons designated pursuant to 

paragraph (a)(3) of this section). See 

§ 576.412 concerning entities that may not be 

listed on the SDN list but whose property 

and interests in property are nevertheless 

blocked pursuant to paragraph (a) of this 

section. 

Note 2 to paragraph (a) of § 576.201: The 

International Emergency Economic Powers 

Act (50 U.S.C. 1701–1706) (‘‘IEEPA’’), in 

section 203 (50 U.S.C. 1702), explicitly 

authorizes the blocking of property and 

interests in property of a person during the 

pendency of an investigation. The names of 

persons whose property and interests in 

property are blocked pending investigation 

pursuant to this part are published on the 

SDN list, published in the Federal Register, 

and incorporated into Appendix A to this 

chapter with the identifier ‘‘[BPI–IRAQ2]’’ or 

‘‘[BPI–IRAQ3].’’ 

Note 3 to paragraph (a) of § 576.201: 

Sections 501.806 and 501.807 of this chapter 

describe the procedures to be followed by 

persons seeking, respectively, the unblocking 

of funds that they believe were blocked due 

to mistaken identity, or administrative 

reconsideration of their status as persons 

whose property and interests in property are 

blocked pursuant to paragraph (a) of this 

section. 

(b) All property and interests in 

property blocked pursuant to Executive 

Order 12722 of August 2, 1990, or 

Executive Order 12724 of August 9, 

1990, that continued to be blocked as of 

July 30, 2004, remain blocked and may 

not be transferred, paid, exported, 

withdrawn, or otherwise dealt in, except 

as authorized by regulations, orders, 

directives, rulings, instructions, licenses 

or otherwise, and notwithstanding any 

contracts entered into or any license or 

permit granted prior to the effective 

date. 

Note to paragraph (b) of § 576.201: In 

§ 576.510 of this part, the Office of Foreign 

Assets Control authorizes all transactions 

involving property and interests in property 

blocked solely pursuant to Executive Orders 

12722 or 12724. The Iraqi Sanctions 

Regulations, 31 CFR part 575, which 

implemented Executive Orders 12722 and 

12724, have been removed from 31 CFR 

chapter V. 

(c) The prohibitions in paragraphs (a) 

and (b) of this section include, but are 

not limited to, prohibitions on the 

following transactions: 

(1) The making of any contribution or 

provision of funds, goods, or services 


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by, to, or for the benefit of any person 

whose property and interests in 

property are blocked pursuant to 

paragraphs (a) or (b) of this section; and 

(2) The receipt of any contribution or 

provision of funds, goods, or services 

from any person whose property and 

interests in property are blocked 

pursuant to paragraphs (a) or (b) of this 

section. 

(d) Unless otherwise authorized by 

this part or by a specific license 

expressly referring to this section, any 

dealing in any security (or evidence 

thereof) held within the possession or 

control of a U.S. person and either 

registered or inscribed in the name of, 

or known to be held for the benefit of, 

or issued by, any person whose property 

and interests in property are blocked 

pursuant to paragraph (a) of this section 

is prohibited. This prohibition includes 

but is not limited to the transfer 

(including the transfer on the books of 

any issuer or agent thereof), disposition, 

transportation, importation, exportation, 

or withdrawal of, or the endorsement or 

guaranty of signatures on, any such 

security on or after the effective date. 

This prohibition applies irrespective of 

the fact that at any time (whether prior 

to, on, or subsequent to the effective 

date) the registered or inscribed owner 

of any such security may have or might 

appear to have assigned, transferred, or 

otherwise disposed of the security. 

(e) The prohibitions in paragraphs (a) 

and (b) of this section apply except to 

the extent transactions are authorized by 

regulations, orders, directives, rulings, 

instructions, licenses, or otherwise, and 

notwithstanding any contracts entered 

into or any license or permit granted 

prior to the effective date. 

§ 576.202 Effect of transfers violating the 

provisions of this part. 

(a) Any transfer after the effective date 

that is in violation of any provision of 

this part or of any regulation, order, 

directive, ruling, instruction, or license 

issued pursuant to this part, and that 

involves any property or interest in 

property blocked pursuant to 

§ 576.201(a) or § 576.201(b), 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 or 

property interests. 

(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 

any interest in, any property or interest 

in property blocked pursuant to 

§ 576.201(a) or § 576.201(b), unless the 

person who holds or maintains such 

property, prior to that 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 the Office of 

Foreign Assets Control before, during, or 

after a transfer shall validate such 

transfer or make it enforceable to the 

same extent that it would be valid or 

enforceable but for the provisions of 

IEEPA, Executive Orders 13315, 13350, 

or 13438, this part, and any regulation, 

order, directive, ruling, instruction, or 

license issued pursuant to this part. 

(d) Transfers of property that 

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 is or 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 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 is or was held or maintained 

(and as to such person only); 

(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 issued 

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 

withholding of material facts or was 

otherwise fraudulently obtained; and 

(3) The person with whom such 

property is or 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 

regulation, ruling, instruction, license, 

or other direction or authorization 

issued pursuant to this part; 

(ii) Such transfer was not licensed or 

authorized by 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 withholding of material facts or 

was otherwise fraudulently obtained. 

Note to paragraph (d) of § 576.202: The 

filing of a report in accordance with the 

provisions of paragraph (d)(3) of this section 

shall not be deemed evidence that the terms 

of paragraphs (d)(1) and (d)(2) of this section 

have been satisfied. 

(e) Unless licensed pursuant to this 

part, any attachment, judgment, decree, 

lien, execution, garnishment, or other 

judicial process is null and void with 

respect to any property in which, on or 

since the effective date, there existed an 

interest of a person whose property and 

interests in property are blocked 

pursuant to § 576.201(a), or with respect 

to any property and interests in property 

blocked pursuant to § 576.201(b). 

§ 576.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

(a) Except as provided in paragraph 

(c) or (d) of this section, or as otherwise 

directed by the Office of Foreign Assets 

Control, any U.S. person holding funds, 

such as currency, bank deposits, or 

liquidated financial obligations, subject 

to § 576.201(a) or § 576.201(b) shall hold 

or place such funds in a blocked 

interest-bearing account located in the 

United States. 

(b)(1) For purposes of this section, the 

term blocked interest-bearing account 

means a blocked account: 

(i) In a federally-insured U.S. bank, 

thrift institution, or credit union, 

provided the funds are earning interest 

at rates that are commercially 

reasonable; or 

(ii) With a broker or dealer registered 

with the Securities and Exchange 

Commission under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.), provided the funds are invested in 

a money market fund or in U.S. 

Treasury bills. 

(2) For purposes of this section, a rate 

is commercially reasonable if it is the 

rate currently offered to other depositors 

on deposits or instruments of 

comparable size and maturity. 

(3) Funds held or placed in a blocked 

account pursuant to this paragraph (b) 

may not be invested in instruments the 

maturity of which exceeds 180 days. If 

interest is credited to a separate blocked 

account or subaccount, the name of the 

account party on each account must be 

the same. 

(c) Blocked funds held in instruments 

the maturity of which exceeds 180 days 

at the time the funds become subject to 

§ 576.201(a) or § 576.201(b) may 

continue to be held until maturity in the 

original instrument, provided any 

interest, earnings, or other proceeds 

derived therefrom are paid into a 

blocked interest-bearing account in 

accordance with paragraph (b) or (d) of 

this section. 

(d) Blocked funds held in accounts or 

instruments outside the United States at 

the time the funds become subject to 


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§ 576.201(a) or § 576.201(b) may 

continue to be held in the same type of 

accounts or instruments, provided the 

funds earn interest at rates that are 

commercially reasonable. 

(e) This section does not create an 

affirmative obligation for the holder of 

blocked tangible property, such as 

chattels or real estate, or other blocked 

property, such as debt or equity 

securities, to sell or liquidate such 

property. However, the Office of Foreign 

Assets Control may issue licenses 

permitting or directing such sales or 

liquidation in appropriate cases. 

(f) Funds subject to this section may 

not be held, invested, or reinvested in 

a manner that provides immediate 

financial or economic benefit or access 

to any person whose property and 

interests in property are blocked 

pursuant to § 576.201(a), nor may their 

holder cooperate in or facilitate the 

pledging or other attempted use as 

collateral of blocked funds or other 

assets. 

§ 576.204 Expenses of maintaining 

blocked physical property; liquidation of 

blocked property. 

(a) Except as otherwise authorized, 

and notwithstanding the existence of 

any rights or obligations conferred or 

imposed by any international agreement 

or contract entered into or any license 

or permit granted prior to the effective 

date, all expenses incident to the 

maintenance of physical property 

blocked pursuant to § 576.201(a) or 

§ 576.201(b) shall be the responsibility 

of the owners or operators of such 

property, which expenses shall not be 

met from blocked funds. 

(b) Property blocked pursuant to 

§ 576.201(a) or § 576.201(b) may, in the 

discretion of the Office of Foreign 

Assets Control, be sold or liquidated 

and the net proceeds placed in a 

blocked interest-bearing account in the 

name of the owner of the property. 

§ 576.205 Evasions; attempts; 

conspiracies. 

(a) Except as otherwise authorized, 

and notwithstanding any contract 

entered into or any license or permit 

granted prior to the effective date, any 

transaction by any U.S. person or within 

the United States on or after the 

effective date that evades or avoids, has 

the purpose of evading or avoiding, or 

attempts to violate any of the 

prohibitions set forth in this part is 

prohibited. 

(b) Except as otherwise authorized, 

and notwithstanding any contract 

entered into or any license or permit 

granted prior to the effective date, any 

conspiracy formed to violate the 

prohibitions set forth in this part is 

prohibited. 

§ 576.206 Protection granted to the 

Development Fund for Iraq, Iraqi Petroleum 

and Petroleum Products, and the Central 

Bank of Iraq. 

(a) Unless licensed or otherwise 

authorized pursuant to this part, and 

except as provided in paragraph (b) of 

this section, any attachment, judgment, 

decree, lien, execution, garnishment, or 

other judicial process on or after the 

effective date is prohibited, and shall be 

deemed null and void, with respect to 

the following: 

(1) The Development Fund for Iraq; 

(2) All Iraqi petroleum and petroleum 

products, and interests therein, but only 

until title passes to the initial purchaser, 

and proceeds, obligations, or any 

financial instruments of any nature 

whatsoever arising from or related to the 

sale or marketing thereof, and interests 

therein, in which any foreign country or 

a national thereof has any interest, 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 United States 

persons; and 

(3) Any accounts, assets, investments, 

or any other property of any kind owned 

by, belonging to, or held by the Central 

Bank of Iraq, or held, maintained, or 

otherwise controlled by any financial 

institution of any kind in the name of, 

on behalf of, or otherwise for the Central 

Bank of Iraq. 

(b) The prohibitions in paragraph (a) 

of this section shall not apply with 

respect to any final judgment arising out 

of a contractual obligation entered into 

by the Government of Iraq, including 

any agency or instrumentality thereof, 

after June 30, 2004. 

§ 576.207 Exemption for property 

controlled by the military forces of the 

United States and their coalition partners in 

Iraq. 

The prohibitions in § 576.201(a)(1) 

and (a)(2) shall not apply to property 

and interests in property that come 

under the control of the military forces 

of the United States and their coalition 

partners present in Iraq and acting in 

their official capacity under the 

command or operational control of the 

commander of United States Central 

Command. 

§ 576.208 Prohibited transactions related 

to certain Iraqi cultural property. 

Unless licensed or otherwise 

authorized pursuant to this part or 

otherwise consistent with U.S. law, the 

trade in or transfer of ownership or 

possession of Iraqi cultural property or 

other items of archeological, historical, 

cultural, rare scientific, and religious 

importance that were illegally removed, 

or for which a reasonable suspicion 

exists that they were illegally removed, 

from the Iraq National Museum, the 

National Library, and other locations in 

Iraq since August 6, 1990, is prohibited. 

Note to § 576.208: See § 576.411 for 

interpretive guidance on this section. 

Questions concerning whether particular 

Iraqi cultural property or other items are 

subject to this section should be directed to 

the Cultural Heritage Center, U.S. 

Department of State, tel. 202–632–6301, fax 

202–632–6300, Web site http:// 

culturalheritage.state.gov, e-mail 

culprop@state.gov. 

§ 576.209 Exempt transactions. 

(a) Personal communications. The 

prohibitions contained in 

§ 576.201(a)(3) do not apply to any 

postal, telegraphic, telephonic, or other 

personal communication that does not 

involve the transfer of anything of value. 

(b) Information or informational 

materials. (1) The importation from any 

country and the exportation to any 

country of any information or 

informational materials, as defined in 

§ 576.306, whether commercial or 

otherwise, regardless of format or 

medium of transmission, are exempt 

from the prohibitions of § 576.201(a)(3). 

(2) This section does not exempt from 

regulation or authorize transactions 

related to information or 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. Such prohibited transactions 

include, but are not limited to, payment 

of advances for information or 

informational materials not yet created 

and completed (with the exception of 

prepaid subscriptions for widely 

circulated magazines and other 

periodical publications); provision of 

services to market, produce or coproduce, create, or assist in the creation 

of information or informational 

materials; and, with respect to 

information or informational materials 

imported from persons whose property 

and interests in property are blocked 

pursuant to § 576.201(a)(3), payment of 

royalties with respect to income 

received for enhancements or alterations 

made by U.S. persons to such 

information or informational materials. 

(3) This section does not exempt or 

authorize transactions incident to the 

exportation of software subject to the 

Export Administration Regulations, 15 

CFR parts 730–774, or to the exportation 

of goods, technology, or software for use 


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in the transmission of any data, or to the 

provision, sale, or leasing of capacity on 

telecommunications transmission 

facilities (such as satellite or terrestrial 

network connectivity) for use in the 

transmission of any data. The 

exportation of such items or services 

and the provision, sale, or leasing of 

such capacity or facilities to a person 

whose property and interests in 

property are blocked pursuant to 

§ 576.201(a) are prohibited. 

(c) Travel. The prohibitions contained 

in § 576.201(a)(3) do not apply to any 

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 nonscheduled air, sea, 

or land voyages. 

Subpart C—General Definitions 

§ 576.301 Blocked account; blocked 

property. 

The terms blocked account and 

blocked property shall mean: 

(a) (1) Any account or property 

subject to the prohibitions in 

§ 576.201(a) held in the name of a 

person whose property and interests in 

property are blocked pursuant to 

§ 576.201(a), or in which such person 

has an interest, or 

(2) Any account or property subject to 

the prohibitions in § 576.201(b), and 

(b) 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 expressly 

authorizing such action. 

Note to § 576.301: See § 576.412 

concerning the blocked status of property 

and interests in property of an entity that is 

50 percent or more owned by a person whose 

property and interests in property are 

blocked pursuant to § 576.201(a). 

§ 576.302 Development Fund for Iraq. 

The term Development Fund for Iraq 

means the fund established on or about 

May 22, 2003, on the books of the 

Central Bank of Iraq, by the 

Administrator of the Coalition 

Provisional Authority responsible for 

the temporary governance of Iraq and all 

accounts held for the fund or for the 

Central Bank of Iraq in the name of the 

fund. 

§ 576.303 Effective date. 

The term effective date refers to the 

effective date of the applicable 

prohibitions and directives contained in 

this part as follows: 

(a) With respect to a person whose 

property and interests in property are 

blocked pursuant to § 576.201(a)(1), 

12:01 a.m. Eastern Daylight Time 

(‘‘e.d.t.’’), August 29, 2003, for those 

persons listed on the Annex to 

Executive Order 13315, and 12:01 a.m., 

e.d.t., July 30, 2004, for those persons 

added to the Annex to Executive Order 

13315 by Executive Order 13350; 

(b) With respect to a person whose 

property and interests in property are 

otherwise blocked pursuant to 

§ 576.201(a)(2) or (a)(3), the earlier of 

the date of actual or constructive notice 

that such person’s property and 

interests in property are blocked; 

(c) With respect to the transactions 

prohibited by § 576.206(a)(1) and (a)(2), 

12:01 a.m. e.d.t., May 23, 2003; 

(d) With respect to the transactions 

prohibited by § 576.206(a)(3), 12:01 a.m. 

Eastern Standard Time (‘‘e.s.t.’’), 

November 30, 2004. 

(e) With respect to the transactions 

prohibited by § 576.201(b) or § 576.208, 

12:01 a.m. e.d.t., July 30, 2004. 

§ 576.304 Entity. 

The term entity means a partnership, 

association, trust, joint venture, 

corporation, group, subgroup or other 

organization. 

§ 576.305 Former Iraqi regime. 

The term former Iraqi regime means 

the Saddam Hussein regime that 

governed Iraq until on or about May 1, 

2003. 

§ 576.306 Information or informational 

materials. 

(a) For purposes of this part, the term 

information or informational materials 

includes, but is not limited to, 

publications, films, posters, phonograph 

records, photographs, microfilms, 

microfiche, tapes, compact disks, CD 

ROMs, artworks, and news wire feeds. 

Note to paragraph (a) of § 576.307: To be 

considered information or informational 

materials, artworks must be classified under 

chapter heading 9701, 9702, or 9703 of the 

Harmonized Tariff Schedule of the United 

States. 

(b) The term information or 

informational materials, with respect to 

United States exports, does not include 

items: 

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

that thereafter become, controlled for 

export pursuant to sections 5 of the 

Export Administration Act of 1979, 50 

U.S.C. App. 2401–2420 (1979) (the 

‘‘EAA’’), or section 6 of the EAA to the 

extent that such controls promote the 

nonproliferation or antiterrorism 

policies of the United States; or 

(2) With respect to which acts are 

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

§ 576.307 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. 

§ 576.308 Iraqi petroleum and petroleum 

products. 

The term Iraqi petroleum and 

petroleum products means any 

petroleum, petroleum products, or 

natural gas originating in Iraq, including 

any Iraqi-origin oil inventories, 

wherever located. 

§ 576.309 Licenses; general and specific. 

(a) Except as otherwise specified, the 

term license means any license or 

authorization contained in or issued 

pursuant to this part. 

(b) The term general license means 

any license or authorization the terms of 

which are set forth in subpart E of this 

part. 

(c) The term specific license means 

any license or authorization not set forth 

in subpart E of this part but issued 

pursuant to this part. 

Note to § 576.309: See § 501.801 of this 

chapter for licensing procedures. 

§ 576.310 Government of Iraq. 

The term Government of Iraq means: 

(a) Any interim or permanent Iraqi 

government in authority after June 30, 

2004, and any subdivision, agency, or 

instrumentality thereof; and 

(b) Any partnership, association, 

corporation, or other organization 

substantially owned or controlled by the 

foregoing. 

§ 576.311 Person. 

The term person means an individual 

or entity. 

§ 576.312 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 


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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. 

§ 576.313 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. Without limitation on 

the foregoing, it 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. 

§ 576.314 UNSC Resolution 1483. 

The term UNSC Resolution 1483 

means United Nations Security Council 

Resolution No. 1483, adopted May 22, 

2003. 

§ 576.315 United States. 

The term United States means the 

United States, its territories and 

possessions, and all areas under the 

jurisdiction or authority thereof. 

§ 576.316 U.S. financial institution. 

The term U.S. financial institution 

means any U.S. entity (including its 

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. It includes 

but is 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 that are 

located in the United States, but not 

such institutions’ foreign branches, 

offices, or agencies. 

§ 576.317 United States person; U.S. 

person. 

The term United States person or U.S. 

person means any United States citizen, 

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. 

Subpart D—Interpretations 

§ 576.401 Reference to amended sections. 

Except as otherwise specified, 

reference to any provision in or 

appendix to this part or chapter or to 

any regulation, ruling, order, 

instruction, directive, or license issued 

pursuant to this part refers to the same 

as currently amended. 

§ 576.402 Effect of amendment. 

Unless otherwise specifically 

provided, any amendment, 

modification, or revocation of any 

provision in or appendix to this part or 

chapter or of any order, regulation, 

ruling, instruction, or license issued by 

the Office of Foreign Assets Control 

does not affect any act done or omitted, 

or any civil or criminal 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 

continue and may be enforced as if such 

amendment, modification, or revocation 

had not been made. 

§ 576.403 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 § 576.201 if 

made after the effective date. 

§ 576.404 Termination and acquisition of 

an interest in 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 person, such property shall no 

longer be deemed to be property 

blocked pursuant to § 576.201, unless 

there exists in the property another 

interest that is blocked pursuant to 

§ 576.201 or any other part of this 

chapter, 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 person whose property 

and interests in property are blocked 

pursuant to § 576.201(a), such property 

shall be deemed to be property in which 

that person has an interest and therefore 

blocked. 

(c) Unless otherwise provided in a 

license or authorization issued pursuant 

to this part, Iraqi petroleum and 

petroleum products shall enjoy the 

protections of § 576.206 until title 

passes to the initial purchaser. For 

purposes of this part, an initial 

purchaser is a purchaser other than the 

Government of Iraq or persons acting for 

it or on its behalf in the marketing or 

sale of Iraqi petroleum and petroleum 

products. 

§ 576.405 Transactions ordinarily incident 

to a licensed transaction. 

Any transaction ordinarily incident to 

a licensed transaction and necessary to 

give effect thereto is also authorized, 

except: 

(a) An ordinarily incident transaction, 

not explicitly authorized within the 

terms of the license, by or with a person 

whose property and interests in 

property are blocked pursuant to 

§ 576.201(a); or 

(b) An ordinarily incident transaction, 

not explicitly authorized within the 

terms of the license, involving a debit to 

a blocked account or a transfer of 

blocked property. 

(c) 

Example. A license authorizing Company 

A, whose property and interests in property 

are blocked pursuant to § 576.201(a), to 

complete a securities sale also authorizes all 

activities by other parties required to 


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complete the sale, including transactions by 

the buyer, broker, transfer agents, banks, etc., 

provided that such other parties are not 

themselves persons whose property and 

interests in property are blocked pursuant to 

§ 576.201(a). 

§ 576.406 Provision of services. 

(a) Except as provided in § 576.209, 

the prohibitions on transactions 

involving blocked property contained in 

§ 576.201 apply to services performed in 

the United States or by U.S. persons, 

wherever located, including by an 

overseas branch of an entity located in 

the United States: 

(1) On behalf of or for the benefit of 

a person whose property and interests 

in property are blocked pursuant to 

§ 576.201(a); or 

(2) With respect to property interests 

subject to § 576.201. 

(b) 

Example: U.S. persons may not, except as 

authorized by or pursuant to this part, 

provide legal, accounting, financial, 

brokering, freight forwarding, transportation, 

public relations, or other services to a person 

whose property and interests in property are 

blocked pursuant to § 576.201(a). 

Note to § 576.406: See §§ 576.507 and 

576.509 on licensing policy with regard to 

the provision of certain legal and medical 

services. 

§ 576.407 Offshore transactions. 

The prohibitions in § 576.201 on 

transactions or dealings involving 

blocked property apply to transactions 

by any U.S. person in a location outside 

the United States with respect to 

property held in the name of a person 

whose property and interests in 

property are blocked pursuant to 

§ 576.201, or property in which a person 

whose property and interests in 

property are blocked pursuant to 

§ 576.201 has or has had an interest 

since the effective date. 

§ 576.408 Payments from blocked 

accounts to satisfy obligations prohibited. 

Pursuant to § 576.201, no debits may 

be made to a blocked account to pay 

obligations to U.S. persons or other 

persons, except as authorized by or 

pursuant to this part. 

§ 576.409 Charitable contributions. 

Unless specifically authorized by the 

Office of Foreign Assets Control 

pursuant to this part, no charitable 

contribution of funds, goods, services, 

or technology, including contributions 

to relieve human suffering, such as food, 

clothing or medicine, may be made by, 

to, or for the benefit of, or received from, 

a person whose property and interests 

in property are blocked pursuant to 

§ 576.201(a). For the purposes of this 

part, a contribution is made by, to, or for 

the benefit of, or received from, a person 

whose property and interests in 

property are blocked pursuant to 

§ 576.201(a) if made by, to, or in the 

name of, or received from or in the 

name of, such a person; if made by, to, 

or in the name of, or received from or 

in the name of, an entity or individual 

acting for or on behalf of, or owned or 

controlled by, such a person; or if made 

in an attempt to violate, to evade, or to 

avoid the bar on the provision of 

contributions by, to, or for the benefit of 

such a person, or the receipt of 

contributions from any such person. 

§ 576.410 Credit extended and cards 

issued by U.S. financial institutions. 

The prohibition in § 576.201 on 

dealing in property subject to that 

section 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 

whose property and interests in 

property are blocked pursuant to 

§ 576.201(a). 

§ 576.411 Prohibited transactions 

involving certain Iraqi cultural property. 

(a) The prohibition on trade in or 

transfer of ownership or possession of 

certain Iraqi cultural property in 

§ 576.208 is separate from, and 

independent of, other laws and 

regulations that may also prohibit the 

same conduct. 

(b) The mere compliance with certain 

legal, administrative, or procedural 

requirements, such as the filing of a U.S. 

Customs and Border Protection Form 

3461 (Entry/Immediate Delivery) or U.S. 

Customs and Border Protection Form 

7501 (Entry Summary), does not render 

the trade in or transfer of Iraqi cultural 

property otherwise consistent with U.S. 

law for purposes of § 576.208. The trade 

in or transfer of Iraqi cultural property 

as described in § 576.208 would violate 

§ 576.208 regardless of whether the U.S. 

Customs and Border Protection forms 

were truthfully and accurately 

completed. 

Note to § 576.411: Other laws and 

regulations potentially applicable to the 

unlawful trade in or transfer of Iraqi cultural 

property include, but are not limited to, the 

transportation of stolen goods, 18 U.S.C. 

2314; the receipt of stolen goods, 18 U.S.C. 

2315; the importation of goods contrary to 

law, 18 U.S.C. 545 and 19 U.S.C. 1595a(a), 

(b), and (c); the exportation of goods contrary 

to law, 19 U.S.C. 1595a(d); the importation of 

stolen cultural property, 19 U.S.C. 2607; the 

importation of cultural property pertaining to 

the inventory of a museum or religious or 

secular public monument, 19 CFR 12.104a; 

and the emergency protection of Iraqi 

cultural antiquities, 19 CFR 12.104j. 

§ 576.412 Entities owned by a person 

whose property and interests in property 

are blocked. 

A person whose property and 

interests in property are blocked 

pursuant to § 576.201(a) has an interest 

in all property and interests in property 

of an entity in which it owns, directly 

or indirectly, a 50 percent or greater 

interest. The property and interests in 

property of such an entity, therefore, are 

blocked, and such an entity is a person 

whose property and interests in 

property are blocked pursuant to 

§ 576.201(a), regardless of whether the 

entity itself is listed in the Annex to 

Executive Order 13315, as amended, or 

designated pursuant to § 576.201(a)(2) 

or (3). 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

§ 576.501 General and specific licensing 

procedures. 

For provisions relating to licensing 

procedures, see part 501, subpart E, of 

this chapter. Licensing actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. 

§ 576.502 Effect of license or 

authorization. 

(a) No license or other authorization 

contained in this part, or otherwise 

issued by the Office of Foreign Assets 

Control, authorizes or validates any 

transaction effected prior to the issuance 

of such license or other authorization, 

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 other part of this 

chapter unless the regulation, ruling, 

instruction, or license specifically refers 

to such part. 

(c) Any regulation, ruling, instruction, 

or license authorizing any transaction 

otherwise prohibited under this part has 

the effect of removing a prohibition 

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 


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with respect to, any property which 

would not otherwise exist under 

ordinary principles of law. 

§ 576.503 Exclusion from licenses. 

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 conferred by any license. The 

Office of Foreign Assets Control also 

reserves the right to restrict the 

applicability of any license to particular 

persons, property, transactions, or 

classes thereof. Such actions are binding 

upon actual or constructive notice of the 

exclusions or restrictions. 

§ 576.504 Payments and transfers to 

blocked accounts in U.S. financial 

institutions. 

Any payment of funds or transfer of 

credit in which a person whose property 

and interests in property are blocked 

pursuant to § 576.201(a) has any interest 

that comes within the possession or 

control of a U.S. financial institution 

must be blocked in an account on the 

books of that financial institution. A 

transfer of funds or credit by a U.S. 

financial institution between blocked 

accounts in its branches or offices is 

authorized, provided that no transfer is 

made from an account within the 

United States to an account held outside 

the United States, and further provided 

that a transfer from a blocked account 

may be made only to another blocked 

account held in the same name. 

Note to § 576.504: See § 501.603 of this 

chapter for mandatory reporting 

requirements regarding financial transfers. 

See also § 576.203 concerning the obligation 

to hold blocked funds in interest-bearing 

accounts. 

§ 576.505 Entries in certain accounts for 

normal service charges authorized. 

(a) A U.S. financial institution is 

authorized to debit any blocked account 

held at that financial institution in 

payment or reimbursement for normal 

service charges owed it by the owner of 

that 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, 

internet, 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, photocopies, credit reports, 

transcripts of statements, registered 

mail, insurance, stationery and supplies, 

and other similar items. 

§ 576.506 Investment and reinvestment of 

certain funds. 

Subject to the requirements of 

§ 576.203, U.S. financial institutions are 

authorized to invest and reinvest assets 

blocked pursuant to § 576.201, subject 

to the following conditions: 

(a) The assets representing such 

investments and reinvestments are 

credited to a blocked account or 

subaccount that is held in the same 

name at the same U.S. financial 

institution, or within the possession or 

control of a U.S. person, but funds shall 

not be transferred outside the United 

States for this purpose; 

(b) The proceeds of such investments 

and reinvestments shall not be credited 

to a blocked account or subaccount 

under any name or designation that 

differs from the name or designation of 

the specific blocked account or 

subaccount in which such funds or 

securities were held; and 

(c) No immediate financial or 

economic benefit accrues (e.g., through 

pledging or other use) to a person whose 

property and interests in property are 

blocked pursuant to § 576.201(a). 

§ 576.507 Provision of certain legal 

services authorized. 

(a) The provision of the following 

legal services to or on behalf of persons 

whose property and interests in 

property are blocked pursuant to 

§ 576.201(a) is authorized, provided that 

all receipts of payment of professional 

fees and reimbursement of incurred 

expenses must be specifically licensed: 

(1) Provision of legal advice and 

counseling on the requirements of and 

compliance with the laws of the United 

States or any jurisdiction within the 

United States, provided that such advice 

and counseling are not provided to 

facilitate transactions in violation of this 

part; 

(2) Representation of persons named 

as defendants in or otherwise made 

parties to domestic U.S. legal, 

arbitration, or administrative 

proceedings; 

(3) Initiation and conduct of domestic 

U.S. legal, arbitration, or administrative 

proceedings in defense of property 

interests subject to U.S. jurisdiction; 

(4) Representation of persons before 

any federal or state agency with respect 

to the imposition, administration, or 

enforcement of U.S. sanctions against 

such persons; and 

(5) Provision of legal services in any 

other context in which prevailing U.S. 

law requires access to legal counsel at 

public expense. 

(b) The provision of any other legal 

services to persons whose property or 

interests in property are blocked 

pursuant to § 576.201(a), not otherwise 

authorized in this part, requires the 

issuance of a specific license. 

(c) Entry into a settlement agreement 

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 property or interests in 

property blocked pursuant to 

§ 576.201(a) is prohibited unless 

licensed pursuant to this part. 

§ 576.508 Judicial process in legal 

proceedings involving ecological accidents. 

The Office of Foreign Assets Control 

may issue specific licenses on a case-bycase basis to authorize the attachment, 

judgment, decree, lien, execution, 

garnishment, or other judicial process 

against property and interests in 

property protected by § 576.206 to 

satisfy liability for damages assessed in 

connection with an ecological accident 

(including an oil spill) that occurred 

after May 22, 2003. 

§ 576.509 Authorization of emergency 

medical services. 

The provision of nonscheduled 

emergency medical services in the 

United States to persons whose property 

and interests in property are blocked 

pursuant to § 576.201(a) is authorized, 

provided that all receipt of payment for 

such services must be specifically 

licensed. 

§ 576.510 Unblocking certain blocked 

property. 

(a) Except for such property and 

interests in property described in 

paragraph (b) of this section, all 

transactions involving property and 

interests in property blocked pursuant 

to § 576.201(b) of this part are 

authorized. 

(b) The authorization in paragraph (a) 

of this section does not apply to blocked 

property and interests in property of 

persons subject to sanctions pursuant to 

§ 576.201(a) of this part or any other 

part of 31 CFR chapter V. 

§ 576.511 Property controlled by the 

military forces of the United States and their 

coalition partners in Iraq. 

The prohibition in § 576.201(a)(3) that 

deals with blocked property and 

interests in property shall not apply to 

property and interests in property 

controlled by the military forces of the 

United States and their coalition 

partners present in Iraq and acting in 

their official capacity under the 

command or operational control of the 

commander of United States Central 

Command. 


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Note to § 576.511: See § 576.207 of this 

part, which exempts property and interests in 

property that come under the control of the 

military forces of the United States and their 

coalition partners present in Iraq and acting 

in their official capacity from the 

prohibitions in § 576.201(a)(1) and (2). 

§ 576.512 Transactions with certain 

blocked persons authorized. 

(a) All transactions with state bodies, 

corporations, or agencies of the former 

Iraqi regime that are otherwise 

prohibited by § 576.201(a) are 

authorized. 

(b) The authorization in paragraph (a) 

of this section does not apply to any 

transactions with state bodies, 

corporations, or agencies of the former 

Iraqi regime listed in Appendix A to 31 

CFR chapter V. 

Subpart F—Reports 

§ 576.601 Records and reports. 

For provisions relating to required 

records and reports, see part 501, 

subpart C, of this chapter. 

Recordkeeping and reporting 

requirements imposed by part 501 of 

this chapter with respect to the 

prohibitions contained in this part are 

considered requirements arising 

pursuant to this part. 

Subpart G—Penalties 

§ 576.701 Penalties. 

(a) Attention is directed to section 206 

of the International Emergency 

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

(‘‘IEEPA’’), which is applicable to 

violations of the provisions of any 

license, ruling, regulation, order, 

directive, or instruction issued by or 

pursuant to the direction or 

authorization of the Secretary of the 

Treasury pursuant to this part or 

otherwise under IEEPA. 

(1) A civil penalty not to exceed the 

amount set forth in section 206 of IEEPA 

may be imposed on any person who 

violates, attempts to violate, conspires 

to violate, or causes a violation of any 

license, order, or regulation issued 

under IEEPA. 

Note to paragraph (a)(1) of § 576.701: As 

of the date of publication in the Federal 

Register of the final rule adding this part to 

31 CFR chapter V September 13, 2010, IEEPA 

provides for a maximum civil penalty not to 

exceed the greater of $250,000 or an amount 

that is twice the amount of the transaction 

that is the basis of the violation with respect 

to which the penalty is imposed. 

(2) A person who willfully commits, 

willfully attempts to commit, or 

willfully conspires to commit, or aids or 

abets in the commission of a violation 

of any license, order, regulation, or 

prohibition may, upon conviction, be 

fined not more than $1,000,000, or if a 

natural person, may be imprisoned for 

not more than 20 years, or both. 

(b) Adjustments to penalty amounts. 

(1) The civil penalties provided in 

IEEPA are subject to adjustment 

pursuant to the Federal Civil Penalties 

Inflation Adjustment Act of 1990 (Pub. 

L. 101–410, as amended, 28 U.S.C. 2461 

note). 

(2) The criminal penalties provided in 

IEEPA are subject to adjustment 

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 the executive, legislative, 

or judicial branch of the Government of 

the United States, knowingly and 

willfully falsifies, conceals, or covers up 

by any trick, scheme, or device a 

material fact; makes any materially 

false, fictitious, or fraudulent statement 

or representation; or makes or uses any 

false writing or document knowing the 

same to contain any materially false, 

fictitious, or fraudulent statement or 

entry shall be fined under title 18, 

United States Code, imprisoned, or 

both. 

(d) Violations of this part may also be 

subject to relevant provisions of other 

applicable laws. 

§ 576.702 Pre-Penalty Notice; settlement. 

(a) When required. If the Office of 

Foreign Assets Control has reason 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 IEEPA and determines 

that a civil monetary penalty is 

warranted, the Office of Foreign Assets 

Control will issue a Pre-Penalty Notice 

informing the alleged violator of the 

agency’s intent to impose a monetary 

penalty. A Pre-Penalty Notice shall be in 

writing. The Pre-Penalty Notice may be 

issued whether or not another agency 

has taken any action with respect to the 

matter. For a description of the contents 

of a Pre-Penalty Notice, see Appendix A 

to part 501 of this chapter. 

(b)(1) Right to respond. An alleged 

violator has the right to respond to a 

Pre-Penalty Notice by making a written 

presentation to the Office of Foreign 

Assets Control. For a description of the 

information that should be included in 

such a response, see Appendix A to part 

501 of this chapter. 

(2) Deadline for response. A response 

to a Pre-Penalty Notice must be made 

within the applicable 30-day period set 

forth in this paragraph. The failure to 

submit a response within the applicable 

time period set forth in this paragraph 

shall be deemed to be a waiver of the 

right to respond. 

(i) Computation of time for response. 

A response to a Pre-Penalty Notice must 

be postmarked or date-stamped by the 

U.S. Postal Service (or foreign postal 

service, if mailed abroad) or courier 

service provider (if transmitted to the 

Office of Foreign Assets Control by 

courier) on or before the 30th day after 

the postmark date on the envelope in 

which the Pre-Penalty Notice was 

mailed. If the Pre-Penalty Notice was 

personally delivered by a non-U.S. 

Postal Service agent authorized by the 

Office of Foreign Assets Control, a 

response must be postmarked or datestamped on or before the 30th day after 

the date of delivery. 

(ii) Extensions of time for response. If 

a due date falls on a Federal holiday or 

weekend, that due date is extended to 

include the following business day. Any 

other extensions of time will be granted, 

at the discretion of the Office of Foreign 

Assets Control, only upon specific 

request to the Office of Foreign Assets 

Control. 

(3) Form and method of response. A 

response to a Pre-Penalty Notice need 

not be in any particular form, but it 

must be typewritten and signed by the 

alleged violator or a representative 

thereof, must contain information 

sufficient to indicate that it is in 

response to the Pre-Penalty Notice, and 

must include the Office of Foreign 

Assets Control identification number 

listed on the Pre-Penalty Notice. A copy 

of the written response may be sent by 

facsimile, but the original also must be 

sent to the Office of Foreign Assets 

Control Civil Penalties Division by mail 

or courier and must be postmarked or 

date-stamped in accordance with 

paragraph (b)(2) of this section. 

(c) Settlement. Settlement discussion 

may be initiated by the Office of Foreign 

Assets Control, the alleged violator, or 

the alleged violator’s authorized 

representative. For a description of 

practices with respect to settlement, see 

Appendix A to part 501 of this chapter. 

(d) Guidelines. Guidelines for the 

imposition or settlement of civil 

penalties by the Office of Foreign Assets 

Control are contained in Appendix A to 

part 501 of this chapter. 

(e) Representation. A representative of 

the alleged violator may act on behalf of 

the alleged violator, but any oral 

communication with the Office of 

Foreign Assets Control prior to a written 

submission regarding the specific 

allegations contained in the Pre-Penalty 


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Notice must be preceded by a written 

letter of representation, unless the PrePenalty Notice was served upon the 

alleged violator in care of the 

representative. 

§ 576.703 Penalty imposition. 

If, after considering any written 

response to the Pre-Penalty Notice and 

any relevant facts, the Office of Foreign 

Assets Control determines that there 

was a violation by the alleged violator 

named in the Pre-Penalty Notice and 

that a civil monetary penalty is 

appropriate, the Office of Foreign Assets 

Control may issue a Penalty Notice to 

the violator containing a determination 

of the violation and the imposition of 

the monetary penalty. For additional 

details concerning issuance of a Penalty 

Notice, see Appendix A to part 501 of 

this chapter. The issuance of the Penalty 

Notice shall constitute final agency 

action. The violator has the right to seek 

judicial review of that final agency 

action in federal district court. 

§ 576.704 Administrative collection; 

referral to United States Department of 

Justice. 

In the event that the violator does not 

pay the penalty imposed pursuant to 

this part or make payment arrangements 

acceptable to the Office of Foreign 

Assets Control, the matter may be 

referred for administrative collection 

measures by the Department of the 

Treasury 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 

§ 576.801 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 part 501, subpart E, of this 

chapter. 

§ 576.802 Delegation by the Secretary of 

the Treasury. 

(a) Except as provided in paragraph 

(b) of this section, any action that the 

Secretary of the Treasury is authorized 

to take pursuant to Executive Order 

13303 of May 22, 2003, and any 

subsequent Executive orders relating to 

the national emergency declared 

therein, including but not limited to 

Executive Order 13315 of August 28, 

2003, and Executive Order 13438 of July 

17, 2007, 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 

the authority so to act. 

(b) Unless otherwise delegated, the 

authority provided in section 2 of 

Executive Order 13315 to confiscate 

property blocked pursuant to this part 

and transfer all vested right, title, and 

interest in such property to the 

Development Fund for Iraq shall be 

exercised only by the Secretary of the 

Treasury, in consultation with the 

Secretary of State. 

Subpart I—Paperwork Reduction Act 

§ 576.901 Paperwork Reduction Act notice. 

For approval by the Office of 

Management and Budget (‘‘OMB’’) under 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) of information 

collections relating to recordkeeping 

and reporting requirements, licensing 

procedures (including those pursuant to 

statements of licensing policy), and 

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: September 1, 2010. 

Adam J. Szubin, 

Director, Office of Foreign Assets Control, 

Department of the Treasury. 

Approved: September 2, 2010. 

Stuart A. Levey, 

Under Secretary, Office of Terrorism and 

Financial Intelligence, Department of the 

Treasury. 

[FR Doc. 2010–22546 Filed 9–10–10; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2010–0787] 

RIN 1625–AA09 

Drawbridge Operation Regulation; 

Pequonnock River, Bridgeport, CT 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is removing 

the drawbridge operation regulations 

that govern the operation of two bridges, 

the Congress Street Bridge at mile 0.4, 

and the Grand Street Bridge at mile 0.9, 

across the Pequonnock River at 

Bridgeport, Connecticut. This final rule 

removes the regulations for the two 

bridges because the draw spans of the 

bridges have been removed. 

DATES: This rule is effective September 

13, 2010. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket, are part of docket USCG–2010– 

0787 and are available by going to 

http://www.regulations.gov, inserting 

USCG–2010–0787 in the ‘‘keyword’’ box, 

and then clicking ‘‘search.’’ This 

material is also available for inspection 

or copying at the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

e-mail Ms. Judy Leung-Yee, Project 

Officer, First Coast Guard District Bridge 

Branch, 212–668–7165, 

judy.leung-yee@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

The Coast Guard is issuing this final 

rule without prior notice and 

opportunity to comment pursuant to 

authority under section 4(a) of the 

Administrative Procedures Act (APA) 

(5 U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because we are 

removing the operation regulations for 

two moveable draw bridges that no 

longer have moveable spans. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective in less than 30 

days after publication in the Federal 

Register. The drawbridges listed under 

the regulations we are removing no 

longer have moveable spans; therefore, 

the drawbridge operation regulations are 

no longer necessary. 

Background and Purpose 

The drawbridge operation regulations 

for the Congress Street Bridge at mile 

0.4, and the Grand Street Bridge at mile 

0.9, across the Pequonnock River at 

Bridgeport, Connecticut, are listed at 33 

CFR 117.219(d) and 33 CFR 117.219(f). 

The moveable span at the Congress 

Street Bridge was removed due to 


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