67912 Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Rules and Regulations 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart I, Section 

40103. Under that section, the FAA is 

charged with prescribing regulations to 

assign the use of airspace necessary to 

ensure the safety of aircraft and the 

efficient use of airspace. This regulation 

is within the scope of that authority as 

it amends controlled airspace at 

Jeannette, PA. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR Part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for Part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g); 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.9U, 

Airspace Designations and Reporting 

Points, dated August 18, 2010, effective 

September 15, 2010, is amended as 

follows: 

Paragraph 6005 Class E airspace areas 

extending upward from 700 feet or more 

above the surface of the earth. 

* * * * * 

AEA PA E5 Jeannette, PA [Amended] 

Monsour Medical Center Heliport Point In 

Space Coordinates 

(Lat. 40°19′49′′ N., long. 79°37′44′′ W.) 

That airspace extending upward from 700 

feet above the surface within a 6-mile radius 

of the Point in Space coordinates, at Lat. 

40°19′49′′ N., long. 79°37′44′′ W., serving the 

Monsour Medical Center Heliport. 

Issued in College Park, Georgia, on October 

19, 2010. 

Mark D. Ward, 

Manager, Operations Support Group, Eastern 

Service Center, Air Traffic Organization. 

[FR Doc. 2010–27644 Filed 11–3–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 510 

North Korea 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 issuing regulations 

with respect to North Korea to 

implement Executive Order 13466 of 

June 26, 2008, and Executive Order 

13551 of August 30, 2010. OFAC 

intends to supplement this part 510 

with a more comprehensive set of 

regulations, which may include 

additional interpretive and definitional 

guidance and additional general 

licenses and statements of licensing 

policy. 

DATES: Effective Date: November 4, 

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, 

Office of Foreign Assets Control, or 

Chief Counsel (Foreign Assets Control), 

tel.: 202/622–2410, Office of the General 

Counsel, Department of the Treasury 

(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-on-demand service, tel.: 202/ 

622–0077. 

Background 

On June 26, 2008, the President, 

invoking the authority of, inter alia, the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701–1706) 

(‘‘IEEPA’’) and the National Emergencies 

Act (50 U.S.C. 1601 et seq.) (‘‘NEA’’), 

issued Executive Order 13466 (73 FR 

36787, June 27, 2008) (‘‘E.O. 13466’’). On 

August 30, 2010, the President, invoking 

the authority of, inter alia, IEEPA, the 

NEA, and section 5 of the United 

Nations Participation Act (22 U.S.C. 

287c), issued Executive Order 13551 (75 

FR 53837, September 1, 2010) (‘‘E.O. 

13551’’), effective at 12:01 p.m. eastern 

daylight time on August 30, 2010. 

The Department of the Treasury’s 

Office of Foreign Assets Control is 

issuing the North Korea Sanctions 

Regulations, 31 CFR part 510 (the 

‘‘Regulations’’), to implement E.O. 13466 

and E.O. 13551, pursuant to authorities 

delegated to the Secretary of the 

Treasury in those orders. A copy of E.O. 

13466 appears in appendix A to this 

part. A copy of E.O. 13551 appears in 

appendix B to this part. 

The Regulations are being published 

in abbreviated form at this time for the 

purpose of providing immediate 

guidance to the public. OFAC intends to 

supplement this part 510 with a more 

comprehensive set of regulations, which 

may include additional interpretive and 

definitional guidance and additional 

general licenses and statements of 

licensing policy. (The appendices to the 

Regulations will be removed when 

OFAC supplements this part with a 

more comprehensive set of regulations.) 

Public Participation 

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 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 

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 510 

Administrative practice and 

procedure, Banks, Banking, Blocking of 

assets, Credit, North Korea, Services. 

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Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Rules and Regulations 67913 

■ For the reasons set forth in the 

preamble, the Department of the 

Treasury’s Office of Foreign Assets 

Control adds part 510 to 31 CFR Chapter 

V to read as follows: 

PART 510—NORTH KOREA 

SANCTIONS REGULATIONS 

Subpart A—Relation of This Part to Other 

Laws and Regulations 

Sec. 

510.101 Relation of this part to other laws 

and regulations. 

Subpart B—Prohibitions 

510.201 Prohibited transactions. 

510.202 Effect of transfers violating the 

provisions of this part. 

510.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

Subpart C—General Definitions 

510.301 Blocked account; blocked property. 

510.302 Effective date. 

510.303 Entity. 

510.304 Interest. 

510.305 Licenses; general and specific. 

510.306 Person. 

510.307 Property; property interest. 

510.308 Transfer. 

510.309 United States. 

510.310 U.S. financial institution. 

510.311 United States person; U.S. person. 

Subpart D—Interpretations 

510.401 [Reserved] 

510.402 Effect of amendment. 

510.403 Termination and acquisition of an 

interest in blocked property. 

510.404 Transactions ordinarily incident to 

a licensed transaction authorized. 

510.405 Setoffs prohibited. 

510.406 Entities owned by a person whose 

property and interests in property are 

blocked. 

Subpart E—Licenses, Authorizations, and 

Statements of Licensing Policy 

510.501 [Reserved] 

510.502 [Reserved] 

510.503 Exclusion from licenses. 

510.504 Payments and transfers to blocked 

accounts in U.S. financial institutions. 

510.505 Entries in certain accounts for 

normal service charges authorized. 

510.506 Provision of certain legal services 

authorized. 

510.507 Authorization of emergency 

medical services. 

Subpart F—[Reserved] 

Subpart G—[Reserved] 

Subpart H—Procedures 

510.801 [Reserved] 

510.802 Delegation by the Secretary of the 

Treasury. 

Subpart I—Paperwork Reduction Act 

510.901 Paperwork Reduction Act notice. 

Appendix A to Part 510—Executive Order 

13466 

Appendix B to Part 510—Executive Order 

13551 

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

50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C. 

287c; Pub. L. 101–410, 104 Stat. 890 (28 

U.S.C. 2461 note); Pub. L. 110–96, 121 Stat. 

1011 (50 U.S.C. 1705 note); E.O. 13466, 73 FR 

36787, June 27, 2008, 3 CFR, 2008 Comp., p. 

195; E.O. 13551, 75 FR 53837, September 1, 

2010. 

Subpart A—Relation of This Part to 

Other Laws and Regulations 

§ 510.101 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 § 510.101: This part has been 

published in abbreviated form for the 

purpose of providing immediate guidance to 

the public. OFAC intends to supplement this 

part with a more comprehensive set of 

regulations, which may include additional 

interpretive and definitional guidance and 

additional general licenses and statements of 

licensing policy. 

Subpart B—Prohibitions 

§ 510.201 Prohibited transactions. 

(a) All transactions prohibited 

pursuant to Executive Order 13466 are 

also prohibited pursuant to this part. 

Note 1 to § 510.201(a): The property and 

interests in property of North Korea or a 

North Korean national blocked pursuant to 

this paragraph are referred to throughout this 

part as ‘‘property and interests in property 

blocked pursuant to § 510.201(a).’’ 

(b) All transactions prohibited pursuant to 

Executive Order 13551 are also prohibited 

pursuant to this part. 

Note 1 to § 510.201: The names of persons 

listed in or designated pursuant to Executive 

Order 13551, whose property and interests in 

property are blocked pursuant to 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 ‘‘[DPRK].’’ 

See § 510.406 concerning entities that may 

not be listed on the SDN list but whose 

property and interests in property are 

nevertheless blocked pursuant to this section. 

Note 2 to § 510.201: Section 203 of the 

International Emergency Economic Powers 

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

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 also are published on 

the SDN list, published in the Federal 

Register, and incorporated into Appendix A 

to this chapter with the identifier ‘‘[BPI– 

DPRK].’’ 

Note 3 to § 510.201: 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 the status of their property 

and interests in property as blocked pursuant 

to § 501.201(a) or of their status as persons 

whose property and interests in property are 

blocked pursuant to § 510.201(b). 

§ 510.202 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 § 510.201 

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 interest. 

(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 

§ 510.201, 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 Order 13466, 

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67914 Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Rules and Regulations 

Executive Order 13551, 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 is or 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 directive 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 § 510.202: 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 or interest in 

property blocked pursuant to § 510.201. 

§ 510.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

(a) Except as provided in paragraphs 

(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 § 510.201 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 

§ 510.201 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 paragraphs (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 

§ 510.201 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 of 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 North Korea or any North Korean 

national who has property or interests 

in property blocked pursuant to 

§ 510.201(a) or any person whose 

property and interests in property are 

blocked pursuant to § 510.201(b), nor 

may their holder cooperate in or 

facilitate the pledging or other 

attempted use as collateral of blocked 

funds or other assets. 

Subpart C—General Definitions 

§ 510.301 Blocked account; blocked 

property. 

The terms blocked account and 

blocked property shall mean any 

account or property subject to the 

prohibitions in § 510.201, and either 

blocked pursuant to § 510.201(a) or held 

in the name of a person whose property 

and interests in property are blocked 

pursuant to § 510.201(b), or in which 

such person has an interest, and with 

respect to which payments, transfers, 

exportations, withdrawals, or other 

dealings may not be made or effected 

except pursuant to an authorization or 

license from the Office of Foreign Assets 

Control expressly authorizing such 

action. 

Note to § 510.301: See § 510.406 

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 § 510.201. 

§ 510.302 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 property and 

interests in property blocked pursuant 

to E.O. 13466, June 26, 2008; 

Note to paragraph (a): Prior to June 26, 

2008, all property and interests in property 

currently blocked pursuant to E.O. 13466 

were blocked pursuant to 31 CFR part 500. 

(b) With respect to a person listed in 

the Annex to E.O. 13551, 12:01 p.m. 

eastern daylight time, August 30, 2010; 

or 

(c) With respect to a person whose 

property and interests in property are 

otherwise blocked pursuant to E.O. 

13551, the earlier of the date of actual 

or constructive notice that such person’s 

property and interests in property are 

blocked. 

§ 510.303 Entity. 

The term entity means a partnership, 

association, trust, joint venture, 

corporation, group, subgroup, or other 

organization. 

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Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Rules and Regulations 67915 

§ 510.304 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. 

§ 510.305 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 § 510.305: See § 501.801 of this 

chapter on licensing procedures. 

§ 510.306 Person. 

The term person means an individual 

or entity. 

§ 510.307 Property; property interest. 

The terms property and property 

interest include, but are not limited to, 

money, checks, drafts, bullion, bank 

deposits, savings accounts, debts, 

indebtedness, obligations, notes, 

guarantees, debentures, stocks, bonds, 

coupons, any other financial 

instruments, bankers acceptances, 

mortgages, pledges, liens or other rights 

in the nature of security, warehouse 

receipts, bills of lading, trust receipts, 

bills of sale, any other evidences of title, 

ownership or indebtedness, letters of 

credit and any documents relating to 

any rights or obligations thereunder, 

powers of attorney, goods, wares, 

merchandise, chattels, stocks on hand, 

ships, goods on ships, real estate 

mortgages, deeds of trust, vendors’ sales 

agreements, land contracts, leaseholds, 

ground rents, real estate and any other 

interest therein, options, negotiable 

instruments, trade acceptances, 

royalties, book accounts, accounts 

payable, judgments, patents, trademarks 

or copyrights, insurance policies, safe 

deposit boxes and their contents, 

annuities, pooling agreements, services 

of any nature whatsoever, contracts of 

any nature whatsoever, and any other 

property, real, personal, or mixed, 

tangible or intangible, or interest or 

interests therein, present, future, or 

contingent. 

§ 510.308 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. 

§ 510.309 United States. 

The term United States means the 

United States, its territories and 

possessions, and all areas under the 

jurisdiction or authority thereof. 

§ 510.310 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. 

§ 510.311 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 

§ 510.401 [Reserved] 

§ 510.402 Effect of amendment. 

Unless otherwise specifically 

provided, any amendment, 

modification, or revocation of any 

provision in this part, any provision in 

or appendix to this chapter, or 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. 

§ 510.403 Termination and acquisition of 

an interest in blocked property. 

(a) Whenever a transaction licensed or 

authorized by or pursuant to this part 

results in the transfer of property 

(including any property interest) away 

from a person, such property shall no 

longer be deemed to be property 

blocked pursuant to § 510.201, unless 

there exists in the property another 

interest that is blocked pursuant to 

§ 510.201 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 § 510.201(b), such property 

shall be deemed to be property in which 

that person has an interest and therefore 

blocked. 

§ 510.404 Transactions ordinarily incident 

to a licensed transaction authorized. 

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 

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whose property and interests in 

property are blocked pursuant to 

§ 510.201(b); 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. 

§ 510.405 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 § 510.201 if 

effected after the effective date. 

§ 510.406 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 § 510.201(b) 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 

§ 510.201(b), regardless of whether the 

entity itself is listed in the Annex or 

designated pursuant to Executive Order 

13551. 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

§ 510.501 [Reserved] 

§ 510.502 [Reserved] 

§ 510.503 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. 

§ 510.504 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 § 510.201(b) 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 § 510.504: See § 501.603 of this 

chapter for mandatory reporting 

requirements regarding financial transfers. 

See also § 510.203 concerning the obligation 

to hold blocked funds in interest-bearing 

accounts. 

§ 510.505 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 charges 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. 

§ 510.506 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 

§ 510.201(b) 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 and 

interests in property are blocked 

pursuant to § 510.201(b), 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 § 510.201 

is prohibited unless licensed pursuant 

to this part. 

§ 510.507 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 § 510.201(b) is authorized, 

provided that all receipt of payment for 

such services must be specifically 

licensed. 

Subpart F—[Reserved] 

Subpart G—[Reserved] 

Subpart H—Procedures 

§ 510.801 [Reserved] 

§ 510.802 Delegation by the Secretary of 

the Treasury. 

Any action that the Secretary of the 

Treasury is authorized to take pursuant 

to Executive Order 13466 of June 26, 

2008 (73 FR 36787, June 27, 2008), or 

Executive Order 13551 of August 30, 

2010 (75 FR 53837, September 1, 2010), 

and any further Executive orders 

relating to the national emergency 

declared in Executive Order 13466, may 

be taken by the Director of the Office of 

Foreign Assets Control or by any other 

person to whom the Secretary of the 

Treasury has delegated authority so to 

act. 

Subpart I—Paperwork Reduction Act 

§ 510.901 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 

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Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Rules and Regulations 67917 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by OMB. 

Appendix A to Part 510—Executive 

Order 13466 

Executive Order 13466 of June 26, 2008 

Continuing Certain Restrictions With Respect 

to North Korea and North Korean Nationals 

By the authority vested in me as President 

by the Constitution and the laws of the 

United States of America, including 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 301 of title 3, United 

States Code, I, GEORGE W. BUSH, President 

of the United States of America, find that the 

current existence and risk of the proliferation 

of weapons-usable fissile material on the 

Korean Peninsula constitute an unusual and 

extraordinary threat to the national security 

and foreign policy of the United States, and 

I hereby declare a national emergency to deal 

with that threat. I further find that, as we deal 

with that threat through multilateral 

diplomacy, it is necessary to continue certain 

restrictions with respect to North Korea that 

would otherwise be lifted pursuant to a 

forthcoming proclamation that will terminate 

the exercise of authorities under the Trading 

With the Enemy Act (50 U.S.C. App. 1 et 

seq.) (TWEA) with respect to North Korea. 

Accordingly, I hereby order: 

Section 1. Except to the extent provided in 

statutes or in regulations, orders, directives, 

or licenses that may be issued pursuant to 

this order, and notwithstanding any contract 

entered into or any license or permit granted 

prior to the date of this order, the following 

are blocked and may not be transferred, paid, 

exported, withdrawn, or otherwise dealt in: 

All property and interests in property of 

North Korea or a North Korean national that, 

pursuant to the President’s authorities under 

the TWEA, the exercise of which has been 

continued in accordance with section 101(b) 

of Public Law 95–223 (91 Stat. 1625; 50 

U.S.C. App. 5(b) note), were blocked as of 

June 16, 2000, and remained blocked 

immediately prior to the date of this order. 

Sec. 2. Except to the extent provided in 

statutes or in regulations, orders, directives, 

or licenses that may be issued pursuant to 

this order, and notwithstanding any contract 

entered into or any license or permit granted 

prior to the date of this order, United States 

persons may not register a vessel in North 

Korea, obtain authorization for a vessel to fly 

the North Korean flag, or own, lease, operate, 

or insure any vessel flagged by North Korea. 

Sec. 3. (a) 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 this order is 

prohibited. 

(b) Any conspiracy formed to violate any 

of the prohibitions set forth in this order is 

prohibited. 

Sec. 4. For the purposes of this order: 

(a) The term ‘‘person’’ means an individual 

or entity; 

(b) The term ‘‘entity’’ means a partnership, 

association, trust, joint venture, corporation, 

group, subgroup, or other organization; and 

(c) The term ‘‘United States 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. 

Sec. 5. The Secretary of the Treasury, after 

consultation with the Secretary of State, is 

hereby authorized to take such actions, 

including the promulgation of rules and 

regulations, and to employ all powers 

granted to the President by IEEPA as may be 

necessary to carry out the purposes of this 

order. The Secretary of the Treasury may 

redelegate any of these functions to other 

officers and agencies of the United States 

Government consistent with applicable law. 

All agencies of the United States Government 

are hereby directed to take all appropriate 

measures within their authority to carry out 

the provisions of this order. 

Sec. 6. The Secretary of the Treasury, after 

consultation with the Secretary of State, is 

hereby authorized to submit the recurring 

and final reports to the Congress on the 

national emergency declared in this order, 

consistent with section 401(c) of the NEA (50 

U.S.C. 1641(c)) and section 204(c) of IEEPA 

(50 U.S.C. 1703(c)). 

Sec. 7. This order is not intended to, and 

does not, create any right or benefit, 

substantive or procedural, enforceable at law 

or in equity by any party against the United 

States, its departments, agencies, 

instrumentalities, or entities, its officers or 

employees, or any other person. 

George W. Bush, 

THE WHITE HOUSE, 

June 26, 2008. 

Appendix B to Part 510—Executive 

Order 13551 

Executive Order 13551 of August 30, 2010 

Blocking Property of Certain Persons With 

Respect to North Korea 

By the authority vested in me as President 

by the Constitution and the laws of the 

United States of America, including 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.), section 5 of the United Nations 

Participation Act of 1945 (22 U.S.C. 287c) 

(UNPA), and section 301 of title 3, United 

States Code; in view of United Nations 

Security Council Resolution (UNSCR) 1718 

of October 14, 2006, and UNSCR 1874 of June 

12, 2009; and to take additional steps with 

respect to the situation in North Korea. 

I, BARACK OBAMA, President of the 

United States of America, hereby expand the 

scope of the national emergency declared in 

Executive Order 13466 of June 26, 2008, 

finding that the continued actions and 

policies of the Government of North Korea, 

manifested most recently by its unprovoked 

attack that resulted in the sinking of the 

Republic of Korea Navy ship Cheonan and 

the deaths of 46 sailors in March 2010; its 

announced test of a nuclear device and its 

missile launches in 2009; its actions in 

violation of UNSCRs 1718 and 1874, 

including the procurement of luxury goods; 

and its illicit and deceptive activities in 

international markets through which it 

obtains financial and other support, 

including money laundering, the 

counterfeiting of goods and currency, bulk 

cash smuggling, and narcotics trafficking, 

destabilize the Korean peninsula and imperil 

U.S. Armed Forces, allies, and trading 

partners in the region, and thereby constitute 

an unusual and extraordinary threat to the 

national security, foreign policy, and 

economy of the United States. 

I hereby order: 

Section 1. (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 any United States 

person, including any overseas branch, of the 

following persons are blocked and may not 

be transferred, paid, exported, withdrawn, or 

otherwise dealt in: 

(i) The persons listed in the Annex to this 

order; and 

(ii) Any person determined by the 

Secretary of the Treasury, in consultation 

with the Secretary of State: 

(A) To have, directly or indirectly, 

imported, exported, or reexported to, into, or 

from North Korea any arms or related 

materiel; 

(B) To have, directly or indirectly, 

provided training, advice, or other services or 

assistance, or engaged in financial 

transactions, related to the manufacture, 

maintenance, or use of any arms or related 

materiel to be imported, exported, or 

reexported to, into, or from North Korea, or 

following their importation, exportation, or 

reexportation to, into, or from North Korea; 

(C) To have, directly or indirectly, 

imported, exported, or reexported luxury 

goods to or into North Korea; 

(D) To have, directly or indirectly, engaged 

in money laundering, the counterfeiting of 

goods or currency, bulk cash smuggling, 

narcotics trafficking, or other illicit economic 

activity that involves or supports the 

Government of North Korea or any senior 

official thereof; 

(E) To have materially assisted, sponsored, 

or provided financial, material, or 

technological support for, or goods or 

services to or in support of, the activities 

described in subsections (a)(ii)(A)–(D) of this 

section or any person whose property and 

interests in property are blocked pursuant to 

this order; 

(F) 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 this order; or (G) to have 

attempted to engage in any of the activities 

described in subsections (a)(ii)(A)–(F) of this 

section. 

(b) I hereby determine that, to the extent 

section 203(b)(2) of IEEPA (50 U.S.C. 

1702(b)(2)) may apply, the making of 

donations of the types of articles specified in 

such section by, to, or for the benefit of any 

person whose property and interests in 

property are blocked pursuant to this order 

would seriously impair my ability to deal 

with the national emergency declared in 

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67918 Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Rules and Regulations 

Executive Order 13466 and expanded in 

scope in this order, and I hereby prohibit 

such donations as provided by subsection (a) 

of this section. 

(c) The prohibitions in subsection (a) of 

this section include, but are not limited to: 

(i) 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 are 

blocked pursuant to this order; and 

(ii) The receipt of any contribution or 

provision of funds, goods, or services from 

any such person. 

(d) The prohibitions in subsection (a) of 

this section apply except to the extent 

provided by statutes, or in regulations, 

orders, directives, or licenses that may be 

issued pursuant to this order, and 

notwithstanding any contract entered into or 

any license or permit granted prior to the 

effective date of this order. 

Sec. 2. (a) Any transaction by a United 

States person or within the United States that 

evades or avoids, has the purpose of evading 

or avoiding, causes a violation of, or attempts 

to violate any of the prohibitions set forth in 

this order is prohibited. 

(b) Any conspiracy formed to violate any 

of the prohibitions set forth in this order is 

prohibited. 

Sec. 3. The provisions of Executive Order 

13466 remain in effect, and this order does 

not affect any action taken pursuant to that 

order. 

Sec. 4. For the purposes of this order: 

(a) The term ‘‘person’’ means an individual 

or entity; 

(b) The term ‘‘entity’’ means a partnership, 

association, trust, joint venture, corporation, 

group, subgroup, or other organization; 

(c) The term ‘‘United States 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; 

(d) The term ‘‘North Korea’’ includes the 

territory of the Democratic People’s Republic 

of Korea and the Government of North Korea; 

(e) The term ‘‘Government of North Korea’’ 

means the Government of the Democratic 

People’s Republic of Korea, its agencies, 

instrumentalities, and controlled entities; 

and 

(f) The term ‘‘luxury goods’’ includes those 

items listed in 15 CFR 746.4(b)(l) and 

Supplement No. 1 to part 746 and similar 

items. 

Sec. 5. For those persons whose property 

and interests in property are blocked 

pursuant to this order who might have a 

constitutional presence in the United States, 

I find that because of the ability to transfer 

funds or other assets instantaneously, prior 

notice to such persons of measures to be 

taken pursuant to this order would render 

these measures ineffectual. I therefore 

determine that for these measures to be 

effective in addressing the national 

emergency declared in Executive Order 

13466 and expanded in scope in this order, 

there need be no prior notice of a listing or 

determination made pursuant to section 1(a) 

of this order. 

Sec. 6. The Secretary of the Treasury, in 

consultation with the Secretary of State, is 

hereby authorized to take such actions, 

including the promulgation of rules and 

regulations, and to employ all powers 

granted to the President by IEEPA and the 

UNPA, as may be necessary to carry out the 

purposes of this order. The Secretary of the 

Treasury may redelegate any of these 

functions to other officers and agencies of the 

United States Government consistent with 

applicable law. All agencies of the United 

States Government are hereby directed to 

take all appropriate measures within their 

authority to carry out the provisions of this 

order. 

Sec. 7. The Secretary of the Treasury, in 

consultation with the Secretary of State, is 

hereby authorized to determine that 

circumstances no longer warrant the blocking 

of the property and interests in property of 

a person listed in the Annex to this order, 

and to take necessary action to give effect to 

that determination. 

Sec. 8. This order is not intended to, and 

does not, create any right or benefit, 

substantive or procedural, enforceable at law 

or in equity by any party against the United 

States, its departments, agencies, or entities, 

its officers, employees, agents, or any other 

person. 

Sec. 9. This order is effective at 12:01 p.m., 

eastern daylight time on August 30, 2010. 

Barack Obama, 

THE WHITE HOUSE, 

August 30, 2010. 

ANNEX 

Individual 

1. KIM Yong Chol [born 1946 or 1947] 

Entities 

1. Green Pine Associated Corporation 

2. Reconnaissance General Bureau 

3. Office 39 

Dated: October 26, 2010. 

Adam J. Szubin, 

Director, Office of Foreign Assets Control. 

Approved: October 28, 2010. 

Stuart A. Levey, 

Under Secretary, Office of Terrorism and 

Financial Intelligence, Department of the 

Treasury. 

[FR Doc. 2010–27829 Filed 11–3–10; 8:45 am] 

BILLING CODE 4810–AL–P 

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