Reporting and Procedures Regulations: Consolidation of Information Collections; Annual Reports on Blocked Assets and Retained Transfers; Reports on Rejected Transfers; Reports on Litigation; Procedure for Releasing Funds Believed to Have Been Blocked Due to Mistaken Identity; Procedure For Removal From the Lists of Blocked Persons and Vessels

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 500, 501, 505, 515, 535, 536, 550, 560, 575, 585, 590,

595, and 596

Reporting and Procedures Regulations: Consolidation of

Information Collections; Annual Reports on Blocked Assets and Retained

Transfers; Reports on Rejected Transfers; Reports on Litigation;

Procedure for Releasing Funds Believed to Have Been Blocked Due to

Mistaken Identity; Procedure For Removal From the Lists of Blocked

Persons and Vessels

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: The Office of Foreign Assets Control (``OFAC'') is issuing the

Reporting and Procedures Regulations. This new part simplifies--by

consolidating and standardizing in a single part--common provisions on

collections of information in existing OFAC regulations. Those

collections are eliminated from the individual parts of 31 CFR chapter

V. This final rule includes an initial and annual requirement to report

on blocked assets or retained funds transfers--as well as periodic

reports on funds transfers rejected by U.S. financial institutions--for

administrative and foreign policy formulation purposes. The rule also

requires reports on U.S. litigation and other dispute resolution

proceedings where the proceedings may affect blocked assets or funds

retained by banks that have stopped violative transfers. In addition,

new procedures are set forth for persons seeking the unblocking of

funds they believe have been blocked due to mistaken identity, or

seeking administrative review of their designation or that of a vessel

as blocked. Finally, the reporting requirements and licensing and other

procedures of the new part are made applicable to transactions that

have become subject to economic sanctions programs for which

implementation and administration are delegated to the Office of

Foreign Assets Control. The final rule also makes conforming amendments

and technical corrections to the various parts of 31 CFR chapter V.

EFFECTIVE DATE: August 25, 1997.

FOR FURTHER INFORMATION CONTACT: Daniel A. Yorks, Blocked Assets

Division (tel.: 202/622-2440); Dennis P. Wood, Chief, Compliance

Programs Division (tel.: 202/622-2490); or William B. Hoffman, Chief

Counsel (tel.: 202/622-2410), Office of Foreign Assets Control,

Department of the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

This document is available as an electronic file on The Federal

Bulletin Board the day of publication in the Federal Register. By

modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for

disk or paper copies. This file is available for downloading without

charge in WordPerfect 5.1, ASCII, and Adobe Acrobat TM readable (*.PDF)

formats. For Internet access, the address for use with the World Wide

Web (Home Page), Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The

document is also accessible for downloading in ASCII format without

charge from Treasury's Electronic Library (``TEL'') in the ``Business,

Trade and Labor Mall'' of the FedWorld bulletin board. By modem, dial

703/321-3339, and select the self-extracting file T11FR00.EXE in TEL.

For Internet access, use one of the following protocols: Telnet =

fedworld.gov (192.239.93.3); World Wide Web (Home Page) = http://

www.fedworld.gov; FTP = ftp.fedworld.gov (192.239.92.205). Additional

information concerning the programs of the Office of Foreign Assets

Control is available for downloading from the Office's Internet Home

Page: http://www.ustreas.gov/treasury/services/fac/fac.html, or in fax

form through the Office's 24-hour fax-on-demand service: call 202/622-

0077 using a fax machine, fax modem, or (within the United States) a

touch-tone telephone.

Background

The Office of Foreign Assets Control (``OFAC'') is adding a new

part 501 to 31 CFR chapter V (``chapter V''), consolidating and

standardizing general information collections and license application

and other procedures currently authorized under the Paperwork Reduction

Act of 1995 (the ``PRA'') and contained in the Foreign Assets Control

Regulations (part 500), Regulations Prohibiting Transactions Involving

the Shipment of Certain Merchandise Between Foreign Countries (part

505), Cuban Assets Control Regulations (part 515), Iranian Assets

Control Regulations (part 535), Narcotics Trafficking Sanctions

Regulations (part 536), Libyan Sanctions Regulations (part 550),

Iranian Transactions Regulations (part 560), Iraqi Sanctions

Regulations (part 575), Federal Republic of Yugoslavia (Serbia &

Montenegro) and Bosnian Serb-Controlled Areas of the Republic of Bosnia

and Herzegovina Sanctions Regulations (part 585), Unita (Angola)

Sanctions Regulations (part 590), Terrorism Sanctions Regulations (part

595), and Terrorism List Governments Sanctions Regulations (part 596).

Part 501 also makes these information collections and licensing and

other procedures applicable to transactions that have become subject to

economic sanctions programs for which implementation and administration

are delegated to OFAC, but for which implementing regulations have not

yet been issued. This is intended to provide standardized procedures

for requesting licenses and other actions, as well as common

recordkeeping and reporting requirements, that will be familiar to the

public and immediately available upon the imposition of future

sanctions programs delegated to OFAC for implementation.

Section 501.601 consolidates OFAC recordkeeping requirements and

standardizes record retention periods at 5 years from the date of a

transaction subject to the prohibitions in chapter V and 5 years from

the date property blocked or retained (see Sec. 596.504(b) of part 596)

under chapter V is unblocked or released. Section 501.602 consolidates

provisions requiring reports at OFAC's demand concerning transactions

or property subject to the prohibitions in chapter V. These provisions

were previously found in subpart F of the individual parts of chapter

V.

New Sec. 501.603 establishes a comprehensive reporting system for

property blocked pursuant to chapter V or retained pursuant to

Sec. 596.504(b) of the Terrorism List Governments Sanctions

Regulations, 31 CFR part 596 (the ``TLGSR''). Section 501.603 imposes

an affirmative obligation to report information regarding such property

within 10 days of the date the property is blocked or funds retained.

Reports must thereafter be filed on a cumulative and comprehensive

annual basis with respect to blocked property or retained funds. The

reporting requirement with respect to blocked property applies to any

form of tangible or intangible ``property'' (as defined in the

individual parts contained in chapter V) that is blocked pursuant to

chapter V. The first annual report is due on September 30, 1997.

The initial and annual reporting requirement in Sec. 501.603

replaces the current requirements contained in subparts E and F of the

individual parts of chapter V for registration by any

[[Page 45099]]

person, including financial institutions (which term includes the terms

``banking institution'' in parts 500, 515, and 550, ``depository

institution'' in part 515, ``domestic bank'' in parts 500, 515, 535,

and 550, ``financial institution'' in part 596, ``United States

depository institution'' in part 560, and ``U.S. financial

institution'' in parts 536, 575, 585, and 595), of blocked property

with OFAC and for designating a person to contact for information

concerning blocked property. The annual report form (Form TDF 90-22.50)

is available by calling the fax-on-demand service maintained by the

Office of Foreign Assets Control at 202/622-0077, or by downloading the

form from the ``OFAC Press Releases and Miscellaneous Documents'' file

library (``FAC__MISC'') located on the Government Printing Office's

Federal Bulletin Board Online via GPO Access (Internet site: http://

fedbbs.access.gpo.gov/libs/fac__misc.htm). The report form is also

added as an appendix to this document, but will not be published in

chapter V. OFAC invites and will consider on a case-by-case basis

requests to submit the information required in the annual report in

alterative formats. The reporting requirements of Sec. 501.603 are

necessary to monitor compliance with regulatory requirements, to

address issues involving U.S. government and private claims, and to

support related diplomatic negotiations.

New Sec. 501.604 requires U.S. financial institutions to report

funds transfers that are rejected where the funds themselves are not

blocked under chapter V, but where the processing of the transfer would

nonetheless facilitate an underlying transaction that is prohibited

under other provisions contained in chapter V. Examples of instances

wherein funds are rejected and this reporting requirement is applicable

include funds transfer instructions (1) referencing a blocked vessel in

the absence of references to blocked parties or financial institutions,

(2) sending funds to a person in Iraq, (3) transferring unlicensed

gifts or charitable donations from the Government of Syria or Sudan to

a U.S. person, (4) crediting Iranian accounts on the books of a U.S.

financial institution, and (5) making unauthorized transfers from U.S.

persons to Iran or the Government of Iran. This reporting requirement

is necessary to monitor compliance with regulatory requirements and

replaces the current requirement in Sec. 596.603 of the TLGSR that

financial institutions report rejected funds transfers pursuant to that

section.

New Sec. 501.605 requires that parties involved in litigation,

arbitration, or other binding alternative dispute resolution

proceedings in the United States on behalf of or against persons whose

property is blocked or required to be retained under chapter V--or

where the outcome of any proceeding may affect blocked property or

retained funds--provide notice of the proceedings to OFAC, as well as

copies of certain documents pertaining to the proceedings. They must

also notify OFAC of certain judicial or similar actions that may affect

blocked property or retained funds, and notify the court or other

adjudicatory body of applicable regulatory restrictions on transfers of

blocked property or retained funds. This reporting requirement is

necessary to ensure that blocked property or retained funds are not

intentionally or inadvertently transferred by judicial or similar

action except as authorized by OFAC. This requirement also replaces

identical reporting requirements previously contained in specific

licenses authorizing payment of attorneys' fees by blocked persons from

unblocked sources.

New Sec. 501.606 makes these reporting requirements in subpart C of

part 501 applicable to transactions subject to economic sanctions

programs for which implementation and administration have been

delegated to the Office of Foreign Assets Control.

Sections 501.801-501.805 include most of the material previously

contained in subpart H of the individual parts of chapter V governing

licensing procedures and procedures relating to administrative

decisions; amendments, modifications, or revocations of licenses;

rulemaking; and requests for documents pursuant to the Freedom of

Information and Privacy Acts.

Section 501.801 provides procedures for requesting specific

licenses, including application procedures under those statements of

licensing policy contained in subpart E of the individual parts in

chapter V, which note the availability of specific licenses for

particular categories of transactions but do not establish requirements

for the submission of specific information.

Information collection provisions that require production of

specified documentation unique to a given general license or statement

of licensing policy will continue to be authorized separately under the

PRA. Examples include statements of licensing policy contained in

subpart E of the individual parts in chapter V that require the

submission of particular, specified documents and/or information in

license applications; quarterly reports by U.S. persons on certain

Iran-related oil transactions by foreign affiliates pursuant to

Sec. 560.603 of chapter V; and censuses of blocked property and claims

previously conducted under sanctions programs administered against

Cambodia, Vietnam, and Libya.

This final rule institutes new administrative procedures in

Sec. 501.806 for requesting the unblocking of funds believed to have

been blocked due to mistaken identity. New administrative procedures

are also set forth in Sec. 501.807 for persons seeking administrative

reconsideration of their designation or that of a vessel as blocked, or

who wish to assert that the circumstances resulting in the designation

are no longer applicable. Denial of an application for removal from the

list of designees subject to the applicable prohibitions of chapter V

(see appendices A, B, and C to chapter V) constitutes final agency

action for purposes of judicial review. These procedures standardize

and codify collections of information for these purposes that were

previously made by individual requests for specific licenses.

New Sec. 501.808 makes these license application and other

procedures in subpart D of part 501 applicable to transactions that

have become subject to economic sanctions programs for which

implementation and administration are delegated to the Office of

Foreign Assets Control, but for which implementing regulations have not

yet been issued.

This final rule also makes a technical correction to the civil

penalty provisions of each affected sanctions program to note that the

Civil Penalties Inflation Adjustment Act of 1990, as amended by the

Debt Collection Improvement Act of 1996, required adjustments to civil

penalties, but did not ``amend'' the underlying statutes authorizing

imposition of those penalties. These changes are made to Sec. 701(a) of

parts 500, 515, 535, 550, 560, 575, 585, 590, and 595.

Since this final rule involves a foreign affairs function,

Executive Order 12886 and the provisions of the Administrative

Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking,

opportunity for public participation, and delay in effective date are

inapplicable. Because no notice of proposed rulemaking is required for

this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not

apply.

Paperwork Reduction Act

The Reporting and Procedures Regulations are being issued without

prior notice and public comment procedure pursuant to the

Administrative Procedure Act (5 U.S.C. 553). Pursuant to the Paperwork

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

[[Page 45100]]

the collections of information contained in the Regulations have been

submitted to and approved by the Office of Management and Budget

(``OMB'') pending public comment, and have been assigned control number

1505-0164. An agency may not conduct or sponsor, and a person is not

required to respond to, a collection of information unless it displays

a valid control number assigned by OMB.

Collections of information previously authorized are contained in

Secs. 501.601-501.602 and 501.801-501.805. Section 501.601 relates to

the maintenance of records and Sec. 501.602 relates to OFAC demands for

information. These provisions were previously contained in subpart F of

the individual parts of chapter V. Sections 501.801-501.805 relate to

licensing, decisionmaking, amendment, modification or revocation,

rulemaking, and document request procedures previously set forth in

subpart H of the individual parts of chapter V.

The new collections of information are contained in Secs. 501.603,

501.604, 501.605, 501.806, and 501.807. Section 501.603 imposes

reporting requirements pertaining to blocked assets and retained funds

transfers. This information is required by OFAC to monitor compliance

with regulatory requirements, to support diplomatic negotiations

concerning the targets of sanctions, and to support settlement

negotiations addressing U.S. claims. Section 501.604 requires the

filing of reports for compliance purposes by U.S. financial

institutions where a funds transfer is not required to be blocked but

is rejected because the underlying transaction is otherwise prohibited.

Section 501.605 requires reporting of information pertaining to

litigation, arbitration, and other binding alternative dispute

resolution proceedings in the United States to prevent the intentional

or inadvertent transfer through such proceedings of blocked property or

retained funds. Section 501.806 sets forth the procedures to be

followed by a person seeking to have funds released at a financial

institution if the person believes that the funds were blocked due to

mistaken identity. Section 501.807 sets forth the procedures to be

followed by persons seeking administrative reconsideration of their

designation or that of a vessel as blocked, or who wish to assert that

the circumstances resulting in the designation are no longer

applicable.

The likely respondents and recordkeepers affected by the

information collections contained in part 501 are financial

institutions, business organizations, and legal representatives.

The estimated total annual reporting and/or recordkeeping burden:

10,000 hours. The estimated annual burden per respondent/record keeper

varies from thirty minutes to 10 hours, depending on individual

circumstances, with an estimated average of 1.25 hours. Estimated

number of respondents and/or record keepers: 8,000. Estimated annual

frequency of responses: 1-12.

Comments are invited on: (a) Whether these new or restated

collections of information are necessary for the proper performance of

the functions of the agency, including whether the information has

practical utility; (b) the accuracy of the agency's estimate of the

burden of the collections of information; (c) ways to enhance the

quality, utility, and clarity of the information to be collected; (d)

ways to minimize the burden of the collection of information on

respondents, including through the use of automated collection

techniques or other forms of information technology; and (e) estimates

of capital or start-up costs and costs of operation, maintenance, and

purchase of services to provide information.

Comments concerning the above information, the accuracy of

estimated average annual burden, and suggestions for reducing this

burden should be directed to OMB, Paperwork Reduction Project, control

number 1505-0164, Washington, DC '20503, with a copy to the Office of

Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania

Ave., NW--Annex, Washington, D.C. 20220. Any such comments should be

submitted not later than October 24, 1997. Comments on aspects of this

final rule other than those involving collections of information

subject to the PRA should not be sent to OMB.

List of Subjects

31 CFR Part 500

Administrative practice and procedure, Banks, banking, Blocking of

assets, Cambodia, Exports, Finance, Foreign claims, Foreign investment

in the United States, Foreign trade, Imports, Information and

informational materials, International organizations, North Korea,

Penalties, Publications, Reporting and recordkeeping requirements,

Securities, Services, Specially designated nationals, Terrorism, Travel

restrictions, Trusts and estates, Vietnam.

31 CFR Part 501

Administrative practice and procedure, Banks, banking, Blocking of

assets, Foreign trade, Reporting and recordkeeping requirements

31 CFR Part 505

Administrative practice and procedure, Banks, banking, COCOM,

Communist countries, Exports, Finance, Foreign trade, Penalties,

Reporting and recordkeeping requirements.

31 CFR Part 515

Administrative practice and procedure, Air carriers, Banks,

banking, Blocking of assets, Cuba, Currency, Estates, Exports, Foreign

investment in the United States, Foreign trade, Imports, Informational

materials, Penalties, Publications, Reporting and recordkeeping

requirements, Securities, Shipping, Specially designated nationals,

Terrorism, Travel restrictions, Trusts and trustees, Vessels.

31 CFR Part 535

Administrative practice and procedure, Banks, banking, Blocking of

assets, Currency, Foreign investment in the United States, Iran,

Penalties, Reporting and recordkeeping requirements, Securities,

Terrorism.

31 CFR Part 536

Administrative practice and procedure, Banks, banking, Blocking of

assets, Narcotics trafficking, Penalties, Reporting and recordkeeping

requirements, Specially designated narcotics traffickers, Transfer of

assets.

31 CFR Part 550

Administrative practice and procedure, Banks, banking, Blocking of

assets, Exports, Foreign investment, Foreign trade, Government of

Libya, Imports, Libya, Loans, Penalties, Reporting and recordkeeping

requirements, Securities, Services, Specially designated nationals,

Terrorism, Travel restrictions.

31 CFR Part 560

Administrative practice and procedure, Agriculture commodities,

Banks, banking, Exports, Foreign trade, Imports, Information,

Investments, Iran, Loans, Penalties, Reporting and recordkeeping

requirements, Services, Specially designated nationals, Terrorism,

Transportation.

31 CFR Part 575

Administrative practice and procedure, Banks, banking, Blocking of

assets, Exports, Foreign trade, Humanitarian aid, Imports, Iraq, Oil

imports, Penalties, Petroleum, Petroleum products, Reporting and

recordkeeping requirements, Specially designated nationals, Terrorism,

Travel restrictions.

[[Page 45101]]

31 CFR Part 585

Administrative practice and procedure, Banks, banking, Blocking of

assets, Bosnian Serbs, Exports, Federal Republic of Yugoslavia (Serbia

and Montenegro), Foreign trade, Imports, Intellectual property, Loans,

Penalties, Reporting and recordkeeping requirements, Securities,

Services, Shipping, Telecommunications, Transfer of assets, Vessels.

31 CFR Part 590

Administrative practice and procedure, Angola, Exports, Foreign

trade, National Union for the Total Independence of Angola, Penalties,

Reporting and recordkeeping requirements, Shipping, UNITA, Vessels.

31 CFR Part 595

Administrative practice and procedure, Banks, banking, Blocking of

assets, Penalties, Reporting and recordkeeping requirements, Specially

designated terrorists, Terrorism, Transfer of assets.

31 CFR Part 596

Administrative practice and procedure, Banks, banking, Cuba,

Penalties, Iran, Iraq, Libya, North Korea, Reporting and recordkeeping

requirements, Sudan, Syria, Terrorism, Transfer of assets.

For the reasons set forth in the preamble, 31 CFR chapter V is

amended as follows:

PART 500--FOREIGN ASSETS CONTROL REGULATIONS

1. The authority citation for part 500 is revised to read as

follows:

Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. App. 1-

44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193,

7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3

CFR, 1943-1948 Comp., p. 748.

1a. The heading of subpart A is revised to read as follows:

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 500.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 500.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 500.201 is amended by adding new paragraph (e) to read

as follows:

Sec. 500.201 Transactions involving designated foreign countries or

their nationals; effective date.

* * * * *

(e) When a transaction results in the blocking of funds at a

banking institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--General Definitions

4. The note at the end of Sec. 500.306 is amended by adding a

sentence to the end of the note to read as follows:

Sec. 500.306 Specially designated national.

* * * * *

Note to Sec. 500.306: * * * Section 501.807 of this chapter sets

forth the procedures to be followed by persons seeking

administrative reconsideration of their designation or that of a

vessel as blocked, or who wish to assert that the circumstances

resulting in the designation are no longer applicable.

Subpart E--Licenses, Authorizations and Statements of Licensing

Policy

5. Section 500.508 is amended by removing paragraph (f) and by

adding a note to the end of the section to read as follows:

Sec. 500.508 Payments to blocked accounts in domestic banks.

* * * * *

Note to Sec. 500.508: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 500.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 500.701 [Amended]

7. Section 500.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

8. Section 500.801 is revised to read as follows:

Sec. 500.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 500.802--500.806 and 500.809 [Removed]

8a. Sections 500.802 through 500.806 and 500.809 are removed.

Secs. 500.807 and 500.808 [Redesignated as Secs. 500.802 and 500.803]

8b. Sections 500.807 and 500.808 are redesignated as Secs. 500.802

and 500.803, respectively.

Subpart I--Miscellaneous Provisions

9. Section 500.901 is revised to read as follows:

Sec. 500.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

10. Part 501 is added to read as follows:

PART 501--REPORTING AND PROCEDURES REGULATIONS

Subpart A--Relation of This Part to Other Parts in This Chapter

Sec.

501.101 Relation of this part to other parts in this chapter.

Subpart B--Definitions

501.301 Definitions.

Subpart C--Reports

501.601 Records and recordkeeping requirements.

501.602 Reports to be furnished on demand.

501.603 Reports on blocked property.

501.604 Reports by U.S. financial institutions on rejected funds

transfers.

501.605 Reports on litigation, arbitration, and dispute resolution

proceedings.

[[Page 45102]]

501.606 Reporting and recordkeeping requirements applicable to

economic sanctions programs.

Subpart D--Procedures

501.801 Licensing.

501.802 Decisions.

501.803 Amendment, modification, or revocation.

501.804 Rulemaking.

501.805 Rules governing availability of information.

501.806 Procedures for unblocking funds believed to have been

blocked due to mistaken identity.

501.807 Procedures governing removal of names from appendices A, B,

and C to this chapter.

501.808 License application and other procedures applicable to

economic sanctions programs.

Subpart E--Paperwork Reduction Act

501.901 Paperwork Reduction Act notice.

Authority: 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1701-

1706; 50 U.S.C. App. 1-44.

Subpart A--Relation of This Part to Other Parts in This Chapter

Sec. 501.101 Relation of this part to other parts in this chapter.

This part sets forth standard reporting and recordkeeping

requirements and license application and other procedures governing

transactions regulated pursuant to other parts codified in this

chapter, as well as to economic sanctions programs for which

implementation and administration are delegated to the Office of

Foreign Assets Control. Substantive prohibitions and policies

particular to each economic sanctions program are not contained in this

part but are set forth in the particular part of this chapter dedicated

to that program, or, in the case of economic sanctions programs not yet

implemented in regulations, in the applicable executive order or other

authority. License application procedures and reporting requirements

set forth in this part govern transactions undertaken pursuant to

general or specific licenses, the criteria for which are set forth in

subpart E of the individual parts in this chapter. Statements of

licensing policy contained in subpart E of the individual parts in this

chapter, however, may contain additional information collection

provisions that require production of specified documentation unique to

a given general license or statement of licensing policy.

Subpart B--Definitions

Sec. 501.301 Definitions.

Definitions of terms used in this part are found in subpart C of

the part within this chapter applicable to the relevant application,

record, report, procedure or transaction. In the case of economic

sanctions programs for which implementation and administration are

delegated to the Office of Foreign Assets Control but for which

regulations have not yet been issued, the definitions of terms in this

part are governed by definitions contained in the implementing statute

or Executive order.

Subpart C--Reports

Sec. 501.601 Records and recordkeeping requirements.

Except as otherwise provided, every person engaging in any

transaction subject to the provisions of this chapter shall keep a full

and accurate record of each such transaction engaged in, regardless of

whether such transaction is effected pursuant to license or otherwise,

and such record shall be available for examination for at least 5 years

after the date of such transaction. Except as otherwise provided, every

person holding property blocked pursuant to the provisions of this

chapter or funds transfers retained pursuant to Sec. 596.504(b) of this

chapter shall keep a full and accurate record of such property, and

such record shall be available for examination for the period of time

that such property is blocked and for at least 5 years after the date

such property is unblocked.

Sec. 501.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of

reports or otherwise, from time to time and at any time as may be

required by the Director, Office of Foreign Assets Control, complete

information relative to any transaction, regardless of whether such

transaction is effected pursuant to license or otherwise, subject to

the provisions of this chapter or relative to any property in which any

foreign country or any national thereof has any interest of any nature

whatsoever, direct or indirect. The Director may require that such

reports include the production of any books of account, contracts,

letters or other papers connected with any such transaction or

property, in the custody or control of the persons required to make

such reports. Reports with respect to transactions may be required

either before or after such transactions are completed. The Director

may, through any person or agency, conduct investigations, hold

hearings, administer oaths, examine witnesses, receive evidence, take

depositions, and require by subpoena the attendance and testimony of

witnesses and the production of all books, papers, and documents

relating to any matter under investigation, regardless of whether any

report has been required or filed in connection therewith.

Sec. 501.603 Reports on blocked property.

(a) Who must report--(1) Holders of blocked property. Any person,

including a financial institution, holding property blocked pursuant to

this chapter must report. The requirement includes financial

institutions that receive and block payments or transfers. This

requirement is mandatory and applies to all U.S. persons (or persons

subject to U.S. jurisdiction in the case of parts 500 and 515 of this

chapter) who have in their possession or control any property or

interests in property blocked pursuant to this chapter.

(2) Primary responsibility to report. A report may be filed on

behalf of a holder of blocked property by an attorney, agent, or other

person. Primary responsibility for reporting blocked property, however,

rests with the actual holder of the property, or the person exercising

control over property located outside the United States, with the

following exceptions: primary responsibility for reporting any trust

assets rest with the trustee; and primary responsibility for reporting

real property rests with any U.S. co-owner, legal representative,

agent, or property manager in the United States. No person is excused

from filing a report by reason of the fact that another person has

submitted a report with regard to the same property, except upon actual

knowledge of the report filed by such other person. Reports filed are

regarded as privileged and confidential.

(3) Financial institutions. For purposes of this section, the term

``financial institution'' shall include a banking institution, domestic

bank, United States depository institution, financial institution, or

U.S. financial institution, as those terms are defined in the

applicable part of this chapter.

(b) What must be reported--(1) Initial reports--(i) When reports

are due. Reports are required to be filed within 10 business days from

the date that property becomes blocked. This reporting requirement

includes payments or transfers that are received and blocked by

financial institutions.

(ii) Contents of reports. Initial reports on blocked property shall

describe the owner or account party, the property, its location, any

existing or new account number or similar reference necessary to

identify the property, actual or estimated value and the date it was

blocked, and shall include the name and

[[Page 45103]]

address of the holder, along with the name and telephone number of a

contact person from whom compliance information can be obtained. If the

report is filed by a financial institution and involves the receipt of

a payment or transfer of funds which are blocked by the financial

institution, the report shall also include a photocopy of the payment

or transfer instructions received and shall confirm that the payment

has been deposited into a new or existing blocked account which is

labeled as such and is established in the name of, or contains a means

of clearly identifying the interest of, the individual or entity

subject to blocking pursuant to the requirements of this chapter.

(2) Annual reports--(i) When reports are due. A comprehensive

report on all blocked property held as of June 30 of the current year

shall be filed annually by September 30. The first annual report is due

September 30, 1997.

(ii) Contents of reports. Annual reports shall be filed using Form

TDF 90-22.50, Annual Report of Blocked Property. Copies of Form TDF 90-

22.50 may be obtained directly from the Office of Foreign Assets

Control, by calling the fax-on-demand service maintained by the Office

of Foreign Assets Control at 202/622-0077, or by downloading the form

from the ``OFAC Press Releases and Miscellaneous Documents'' file

library (``FAC__MISC'') located on the Government Printing Office's

Federal Bulletin Board Online via GPO Access (Internet site: http://

fedbbs.access.gpo.gov/libs/fac__misc.htm). Photocopies of the report

form may be used. Requests to submit the information required on Form

TDF 90-22.50 in an alternative format developed by the reporter are

invited and will be considered by the Office of Foreign Assets Control

on a case-by-case basis. A copy of reports filed using form TDF 90-

22.50 or in alternative formats must be retained for the reporter's

records.

(c) Reports on retained funds pursuant to Sec. 596.504(b) of this

chapter. The reporting requirements set forth in this section are

applicable to any financial institution retaining funds pursuant to

Sec. 596.504(b) of this chapter, except that the account name shall

reflect the name of the person whose interest required retention of the

funds.

(d) Where to report. All reports must be filed with the Office of

Foreign Assets Control, Compliance Programs Division, U.S. Treasury

Department, 1500 Pennsylvania Avenue NW--Annex, Washington, DC 20220.

Sec. 501.604 Reports by U.S. financial institutions on rejected funds

transfers.

(a) Who must report. Any financial institution that rejects a funds

transfer where the funds are not blocked under the provisions of this

chapter, but where processing the transfer would nonetheless violate,

or facilitate an underlying transaction that is prohibited under, other

provisions contained in this chapter, must report. For purposes of this

section, the term ``financial institution'' shall include a banking

institution, depository institution or United States depository

institution, domestic bank, financial institution or U.S. financial

institution, as those terms are defined in the applicable part of this

chapter.

(b) Rejected transfers. Examples of transactions involving rejected

funds transfers include funds transfer instructions:

(1) Referencing a blocked vessel but where none of the parties or

financial institutions involved in the transaction is a blocked person;

(2) Sending funds to a person in Iraq;

(3) Transferring unlicensed gifts or charitable donations from the

Government of Syria or Sudan to a U.S. person;

(4) Crediting Iranian accounts on the books of a U.S. financial

institution; and

(5) Making unauthorized transfers from U.S. persons to Iran or the

Government of Iran.

(c) When reports are due. Reports are required to be filed within

10 business days by any financial institution rejecting instructions to

execute payments or transfers involving underlying transactions

prohibited by the provisions of this chapter.

(d) What must be reported. The report shall include the name and

address of the transferee financial institution, the date of the

transfer, the amount of the payment transfer, and a photocopy of the

payment or transfer instructions received, and shall state the basis

for the rejection of the transfer instructions. The report shall also

provide the name and telephone number of a contact person at the

transferee financial institution from whom compliance information may

be obtained.

(e) Where to report. Reports must be filed with the Office of

Foreign Assets Control, Compliance Programs Division, U.S. Treasury

Department, 1500 Pennsylvania Avenue NW--Annex, Washington, DC 20220.

Sec. 501.605 Reports on litigation, arbitration, and dispute

resolution proceedings.

(a) U.S. persons (or persons subject to the jurisdiction of the

United States in the case of parts 500 and 515 of this chapter)

participating in litigation, arbitration, or other binding alternative

dispute resolution proceedings in the United States on behalf of or

against persons whose property or interests in property are blocked or

whose funds have been retained pursuant to Sec. 596.504(b) of this

chapter, or when the outcome of any proceeding may affect blocked

property or retained funds, must:

(1) Provide notice of such proceedings upon their commencement or

upon submission or receipt of documents bringing the proceedings within

the terms of the introductory text to this paragraph (a);

(2) Submit copies of all pleadings, motions, memoranda, exhibits,

stipulations, correspondence, and proposed orders or judgments

(including any proposed final judgment or default judgment) submitted

to the court or other adjudicatory body, and all orders, decisions,

opinions, or memoranda issued by the court, to the Chief Counsel,

Office of Foreign Assets Control, U.S. Department of the Treasury, 1500

Pennsylvania Avenue, NW--Annex, Washington, DC 20220, within 10 days of

filing, submission or issuance. This paragraph (a)(2) shall not apply

to discovery requests or responses, documents filed under seal, or

requests for procedural action not seeking action dispositive of the

proceedings (such as requests for extension of time to file); and

(3) Report by immediate facsimile transmission to the Chief

Counsel, Office of Foreign Assets Control, at facsimile number 202/622-

1911, the scheduling of any hearing or status conference in the

proceedings whenever it appears that the court or other adjudicatory

body may issue an order or judgment in the proceedings (including a

final judgment or default judgment) or is considering or may decide any

pending request dispositive of the merits of the proceedings or of any

claim raised in the proceedings.

(b) The reporting requirements of paragraph (a) of this section do

not apply to proceedings to which the Office of Foreign Assets Control

is a party.

(c) Persons initiating proceedings subject to the reporting

requirements of this section must notify the court or other

adjudicatory body of the restrictions set forth under the applicable

part in this chapter governing the transfer of blocked property or

funds retained pursuant to Sec. 596.504(b) of this chapter, including

the prohibition on any unlicensed attachment, judgment, decree, lien,

execution, garnishment or other judicial process with respect to

[[Page 45104]]

any property in which, on or after the applicable effective date, there

existed an interest of any person whose property and property interests

were subject to blocking pursuant to this chapter or were subject to

retention pursuant to Sec. 596.504(b) of this chapter.

Sec. 501.606 Reporting and recordkeeping requirements applicable to

economic sanctions programs.

The reporting and recordkeeping requirements set forth in this

subpart are applicable to economic sanctions programs for which

implementation and administration have been delegated to the Office of

Foreign Assets Control.

Subpart D--Procedures

Sec. 501.801 Licensing.

(a) General licenses. General licenses have been issued authorizing

under appropriate terms and conditions certain types of transactions

which are subject to the prohibitions contained in this chapter. All

such licenses are set forth in subpart E of each part contained in this

chapter. General licenses may also be issued authorizing under

appropriate terms and conditions certain types of transactions which

are subject to prohibitions contained in economic sanctions programs

the implementation and administration of which have been delegated to

the Director of the Office of Foreign Assets Control but which are not

yet codified in this chapter. It is the policy of the Office of Foreign

Assets Control not to grant applications for specific licenses

authorizing transactions to which the provisions of an outstanding

general license are applicable. Persons availing themselves of certain

general licenses may be required to file reports and statements in

accordance with the instructions specified in those licenses. Failure

to file such reports or statements will nullify the authority of the

general license.

(b) Specific licenses--(1) General course of procedure.

Transactions subject to the prohibitions contained in this chapter, or

to prohibitions the implementation and administration of which have

been delegated to the Director of the Office of Foreign Assets Control,

which are not authorized by general license may be effected only under

specific licenses.

(2) Applications for specific licenses. Applications for specific

licenses to engage in any transactions prohibited by or pursuant to

this chapter or sanctions programs that have been delegated to the

Director of the Office of Foreign Assets Control for implementation and

administration may be filed by letter with the Office of Foreign Assets

Control. Any person having an interest in a transaction or proposed

transaction may file an application for a license authorizing such

transaction, but the applicant for a specific license is required to

make full disclosure of all parties in interest to the transaction so

that a decision on the application may be made with full knowledge of

all relevant facts and so that the identity and location of the persons

who know about the transaction may be easily ascertained in the event

of inquiry.

(3) Information to be supplied. The applicant must supply all

information specified by relevant instructions and/or forms, and must

fully disclose the names of all parties who are concerned with or

interested in the proposed transaction. If the application is filed by

an agent, the agent must disclose the name of his principal(s). Such

documents as may be relevant shall be attached to each application as a

part of such application, except that documents previously filed with

the Office of Foreign Assets Control may, where appropriate, be

incorporated by reference in such application. Applicants are required

to supply their taxpayer identifying number pursuant to 31 U.S.C. 7701,

which number may be used for purposes of collecting and reporting on

any delinquent amounts arising out of the applicant's relationship with

the United States Government. Applicants may be required to furnish

such further information as is deemed necessary to a proper

determination by the Office of Foreign Assets Control. Any applicant or

other party in interest desiring to present additional information may

do so at any time before or after decision. Arrangements for oral

presentation should be made with the Office of Foreign Assets Control.

(4) Effect of denial. The denial of a license does not preclude the

reopening of an application or the filing of a further application. The

applicant or any other party in interest may at any time request

explanation of the reasons for a denial by correspondence or personal

interview.

(5) Reports under specific licenses. As a condition for the

issuance of any license, the licensee may be required to file reports

with respect to the transaction covered by the license, in such form

and at such times and places as may be prescribed in the license or

otherwise.

(6) Issuance of license. Licenses will be issued by the Office of

Foreign Assets Control acting on behalf of the Secretary of the

Treasury or licenses may be issued by the Secretary of the Treasury

acting directly or through any specifically designated person, agency,

or instrumentality.

(7) Address. License applications, reports, and inquiries should be

addressed to the appropriate division or individual within the Office

of Foreign Assets Control, or to its Director, at the following

address: Office of Foreign Assets Control, U.S. Department of the

Treasury, 1500 Pennsylvania Avenue, NW--Annex, Washington, DC 20220.

Sec. 501.802 Decisions.

The Office of Foreign Assets Control will advise each applicant of

the decision respecting filed applications. The decision of the Office

of Foreign Assets Control acting on behalf of the Secretary of the

Treasury with respect to an application shall constitute final agency

action.

Sec. 501.803 Amendment, modification, or revocation.

The provisions of this part and any rulings, licenses (whether

general or specific), authorizations, instructions, orders, or forms

issued hereunder may be amended, modified, or revoked at any time.

Sec. 501.804 Rulemaking.

(a) All rules and other public documents are issued by the Director

of the Office of Foreign Assets Control. In general, rulemaking by the

Office of Foreign Assets Control involves foreign affairs functions of

the United States, and for that reason is exempt from the requirements

under the Administrative Procedure Act (5 U.S.C. 553) for notice of

proposed rulemaking, opportunity for public comment, and delay in

effective date.

(b) Any interested person may petition the Director of the Office

of Foreign Assets Control in writing for the issuance, amendment, or

repeal of any rule.

Sec. 501.805 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control which are

required by the Freedom of Information Act (5 U.S.C. 552) to be made

available to the public shall be made available in accordance with the

definitions, procedures, payment of fees, and other provisions of the

regulations on the Disclosure of Records of the Departmental Offices

and of other bureaus and offices of the Department of the Treasury

issued under 5 U.S.C. 552 and published at 31 CFR part 1.

(b) The records of the Office of Foreign Assets Control which are

required by the Privacy Act (5 U.S.C. 552a) to be made available to an

[[Page 45105]]

individual shall be made available in accordance with the definitions,

procedures, requirements for payment of fees, and other provisions of

the Regulations on the Disclosure of Records of the Departmental

Offices and of other bureaus and offices of the Department of the

Treasury issued under 5 U.S.C. 552a and published at 31 CFR part 1.

(c) Any form issued for use in connection with this chapter may be

obtained in person or by writing to the Office of Foreign Assets

Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue,

NW--Annex, Washington, DC 20220, or by calling 202/622-2480.

Sec. 501.806 Procedures for unblocking funds believed to have been

blocked due to mistaken identity.

When a transaction results in the blocking of funds at a financial

institution pursuant to the applicable regulations of this chapter and

a party to the transaction believes the funds have been blocked due to

mistaken identity, that party may seek to have such funds unblocked

pursuant to the following administrative procedures:

(a) Any person who is a party to the transaction may request the

release of funds which the party believes to have been blocked due to

mistaken identity.

(b) Requests to release funds which a party believes to have been

blocked due to mistaken identity must be made in writing and addressed

to the Office of Foreign Assets Control, 1500 Pennsylvania Avenue, NW--

Annex, Washington, DC 20220, or sent by facsimile transmission to 202/

622-1657.

(c) The written request to release funds must include the name,

address, telephone number, and (where available) fax number of the

party seeking the release of the funds. For individuals, the inclusion

of a social security number is voluntary but will facilitate resolution

of the request. For corporations or other entities, the application

should include its principal place of business, the state of

incorporation or organization, and the name and telephone number of the

appropriate person to contact regarding the application.

(d) A request to release funds should include the following

information, where known, concerning the transaction:

(1) The name of the financial institution in which the funds are

blocked;

(2) The amount blocked;

(3) The date of the blocking;

(4) The identity of the original remitter of the funds and any

intermediary financial institutions;

(5) The intended beneficiary of the blocked transfer;

(6) A description of the underlying transaction including copies of

related documents (e.g., invoices, bills of lading, promissory notes,

etc.);

(7) The nature of the applicant's interest in the funds; and

(8) A statement of the reasons why the applicant believes the funds

were blocked due to mistaken identity.

(e) Upon receipt of the materials required by paragraph (d) of this

section, OFAC may request additional material from the applicant

concerning the transaction pursuant to Sec. 501.602.

(f) Following review of all applicable submissions, the Director of

the Office of Foreign Assets Control will determine whether to release

the funds. In the event the Director determines that the funds should

be released, the Office of Foreign Assets Control will direct the

financial institution to return the funds to the appropriate party.

(g) For purposes of this section, the term ``financial

institution'' shall include a banking institution, depository

institution or United States depository institution, domestic bank,

financial institution or U.S. financial institution, as those terms are

defined in the applicable part of this chapter.

Sec. 501.807 Procedures governing removal of names from appendices A,

B, and C to this chapter.

Persons seeking administrative reconsideration of their designation

or that of a vessel as blocked, or who wish to assert that the

circumstances resulting in the designation are no longer applicable,

may seek to have the designation rescinded pursuant to the following

administrative procedures:

(a) A specially designated national (``SDN''), specially designated

terrorist (``SDT''), or specially designated narcotics trafficker

(``SDNT'') (collectively, a ``designated person''), or a person owning

a majority interest in a blocked vessel, may request disclosure of the

factual basis for designation and, subject to the limitations contained

in paragraph (c) of this section, review factual materials relied upon

by the Office of Foreign Assets Control in designating the person or

vessel.

(b) Requests to review such information must be made in writing and

addressed to the Director, Office of Foreign Assets Control, U.S.

Department of the Treasury, 1500 Pennsylvania Avenue, NW--Annex,

Washington, DC 20220.

(c) The Office of Foreign Assets Control will deny access to

documents that are classified pursuant to Executive Order No. 12958 or

similar Executive orders, or to documents that the Office deems

privileged, or that the Office determines would not otherwise be

available by law to a party in litigation with the Office. Similarly,

the Office may redact materials to protect confidential or privileged

information.

(d) Following a review of the basis of designation, a designated

person or person owning a majority interest in a blocked vessel may

submit arguments or evidence that the person believes refutes the basis

for designation, or may propose remedial steps on its part, including

corporate reorganization, resignation of position(s) in a blocked

organization or similar steps, which it believes would negate the basis

for designation. A person owning a majority interest in a blocked

vessel may propose the sale of the vessel, with the proceeds to be

placed into a blocked interest-bearing account after deducting the

costs incurred while the vessel was blocked and the costs of the sale.

(e) After making a written submission, a designated person or

person seeking the unblocking of a vessel may request a meeting with

the Director of the Office of Foreign Assets Control; however, such

meetings are not required, and the Director may, at his discretion,

decline to conduct such meetings prior to making a review pursuant to

this section.

(f) The information submitted by the designated person or person

seeking the unblocking of a vessel will be reviewed by the Director,

who may request clarifying, corroborating, or other additional

information.

(g) For purposes of judicial review, a decision pursuant to this

section constitutes a final agency action.

Sec. 501.808 License application and other procedures applicable to

economic sanctions programs.

Upon submission to the Office of Management and Budget of an

amendment to the overall burden hours for the information collections

imposed under this part, the license application and other procedures

set forth in this subpart are applicable to economic sanctions programs

for which implementation and administration have been delegated to the

Office of Foreign Assets Control.

Subpart E--Paperwork Reduction Act

Sec. 501.901 Paperwork Reduction Act notice.

The information collection requirements in subparts C and D have

been approved by the Office of Management and Budget (``OMB'')

[[Page 45106]]

under the Paperwork Reduction Act (44 U.S.C. 3507(j)) and assigned

control number 1505-0164. An agency may not conduct or sponsor, and a

person is not required to respond to, a collection of information

unless it displays a valid control number assigned by OMB.

PART 505--REGULATIONS PROHIBITING TRANSACTIONS INVOLVING THE

SHIPMENT OF CERTAIN MERCHANDISE BETWEEN FOREIGN COUNTRIES

1. The authority citation for part 505 is revised to read as

follows:

Authority: 31 U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-

410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3

CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-

1948 Comp., p. 748.

Sec. 505.40 [Amended]

2. Section 505.40 is amended by revising the reference to

``Secs. 500.601 and 500.602'' to read ``Secs. 501.601 and 501.602''.

3. Section 505.60 is revised to read as follows:

Sec. 505.60 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

Sec. 500.802 and subpart D of part 501 of this chapter.

PART 515--CUBAN ASSETS CONTROL REGULATIONS

1. The authority citation for part 515 is revised to read as

follows:

Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 31

U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-410, 104 Stat. 890

(28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943 Comp.,

p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 1943-48 Comp., p. 748; Proc.

3447, 27 FR 1085, 3 CFR 1959-1963 Comp., p. 157; E.O. 12854, 58 FR

36587, 3 CFR, 1993 Comp., p. 614.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 515.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 515.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 515.201 is amended by adding new paragraph (e) to read

as follows:

Sec. 515.201 Transactions involving designated foreign countries or

their nationals; effective date.

* * * * *

(e) When a transaction results in the blocking of funds at a

banking institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--General Definitions

4. The note at the end of Sec. 515.306 is amended by adding a

sentence to the end of the note to read as follows:

Sec. 515.306 Specially designated national.

* * * * *

Note to Sec. 515.306: * * * Section 501.807 of this chapter sets

forth the procedures to be followed by persons seeking

administrative reconsideration of their designation or that of a

vessel as blocked, or who wish to assert that the circumstances

resulting in the designation are no longer applicable.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

5. Section 515.508 is amended by removing paragraph (f) and by

adding a note to the end of the section to read as follows:

Sec. 515.508 Payments to blocked accounts in domestic banks.

* * * * *

Note to Sec. 515.508: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 515.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 515.701 [Amended]

7. Section 515.701(a) introductory text is amended by removing the

words ``as amended by'' and by adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

8. Section 515.801 is revised to read as follows:

Sec. 515.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 515.802-500.806 and 515.809 [Removed]

8a. Sections 515.802 through 515.806 and 515.809 are removed.

Secs. 515.807 and 515.808 [Redesignated as Secs. 515.802 and 515.803]

8b. Sections 515.807 and 515.808 are redesignated as Secs. 515.802

and 515.803, respectively.

Subpart I--Miscellaneous Provisions

9. Section 515.901 is revised to read as follows:

Sec. 515.901 Paperwork Reduction Act notice.

Collection of information on TDF 90-22.39, ``Declaration, Travel to

Cuba,'' has been approved by the Office of Management and Budget

(``OMB'') under the Paperwork Reduction Act (44 U.S.C. 3507(j)) and

assigned control number 1505-0118. For approval by OMB under the

Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

1. The authority citation for part 535 is revised to read as

follows:

Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1701-

1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O.

12170, 44 FR 65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR

24099, 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR,

1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR 1981 Comp., p.

104; E.O. 12279, 46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280,

46 FR 7921, 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3

CFR, 1981 Comp., p. 110; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp.,

p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O.

[[Page 45107]]

12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 535.101 is amended by removing the first two sentences

of paragraph (a) and adding a new sentence in their place to read as

follows:

Sec. 535.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart E--Licenses, Authorizations and Statements of Licensing

Policy

3. Section 535.508 is amended by removing paragraph (f) and by

adding a note to the end of the section to read as follows:

Sec. 535.508 Payments to blocked accounts in domestic banks.

* * * * *

Note to Sec. 535.508: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

4. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 535.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 535.701 [Amended]

5. Section 535.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

6. Subpart H is revised to read as follows:

Subpart H--Procedures

Sec. 535.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Subpart I--Miscellaneous Provisions

7. Section 535.905 is revised to read as follows:

Sec. 535.905 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

1. The authority citation for part 536 is revised to read as

follows:

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1641,

1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);

E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 536.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 536.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 536.201 is amended by designating the existing paragraph

as paragraph (a) and by adding new paragraph (b) to read as follows:

Sec. 536.201 Prohibited transactions involving blocked property.

* * * * *

(b) When a transaction results in the blocking of funds at a

financial institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--General Definitions

4. Section 536.312 is amended by adding a note to the end of the

section to read as follows:

Sec. 536.312 Specially designated narcotics traffickers.

* * * * *

Note to Sec. 536.312: Please refer to the appendices at the end

of this chapter for listings of persons determined to fall within

this definition who have been designated pursuant to this part.

Section 501.807 of this chapter sets forth the procedures to be

followed by persons seeking administrative reconsideration of their

designation, or who wish to assert that the circumstances resulting

in the designation are no longer applicable.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

5. Section 536.503 is amended by revising paragraph (a) and by

adding a note to the end of the section to read as follows:

Sec. 536.503 Payments and transfers to blocked accounts in U.S.

financial institutions.

(a) Any payment of funds or transfer of credit or other financial

or economic resources or assets into a blocked account in a U.S.

financial institution is authorized, provided that a transfer from a

blocked account pursuant to this authorization may only be made to

another blocked account held in the same name on the books of the same

U.S. financial institution.

* * * * *

Note to Sec. 536.503: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 536.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart H--Procedures

7. Section 536.801 is revised to read as follows:

Sec. 536.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

[[Page 45108]]

Secs. 536.802-536.804 and 536.806 [Removed]

7a. Sections 536.802 through 536.804 and 536.806 are removed.

Sec. 536.805 [Redesignated as Sec. 536.802]

7b. Section 536.805 is redesignated as Sec. 536.802.

Subpart I--Paperwork Reduction Act

8. Section 536.901 is revised to read as follows:

Sec. 536.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

PART 550--LIBYAN SANCTIONS REGULATIONS

1. The authority citation for part 550 is revised to read as

follows:

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c,

2349aa-8 and 2349aa-9; 31 U.S.C. 321(b); 49 U.S.C. App. 1514; 50

U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28

U.S.C. 2461 note); E.O. 12543, 51 FR 875, 3 CFR, 1986 Comp., p. 181;

E.O. 12544, 51 FR 1235, 3 CFR, 1986 Comp., p. 183; E.O. 12801, 57 FR

14319, 3 CFR, 1992 Comp., p. 294.

Subpart A--Relation of this Part to Other Laws and Regulations

2. Section 550.101 is amended by removing the first two sentences

of paragraph (a) and adding a new sentence in their place to read as

follows:

Sec. 550.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 550.209 is amended by adding new paragraph (c) to read

as follows:

Sec. 550.209 Prohibited transactions involving property in which the

Government of Libya has an interest; transactions with respect to

securities.

* * * * *

(c) When a transaction results in the blocking of funds at a

financial institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--Definitions

4. The note at the end of Sec. 550.304 is amended by adding a

sentence to the end of the note to read as follows:

Sec. 550.304 Government of Libya.

* * * * *

Note to Sec. 550.304: * * * Section 501.807 of this chapter sets

forth the procedures to be followed by persons seeking

administrative reconsideration of their designation or that of a

vessel as blocked, or who wish to assert that the circumstances

resulting in the designation are no longer applicable.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

5. Section 550.511 is amended by removing paragraph (g) and

redesignating paragraph (h) as paragraph (g), by removing the words

``paragraph (g) of this section'' from the last sentence of newly

designated paragraph (g) and adding in their place the words ``the note

to this section'', and by adding a note to the end of the section to

read as follows:

Sec. 550.511 Payments and transfers to blocked accounts in domestic

banks.

* * * * *

Note to Sec. 550.511: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 550.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 550.701 [Amended]

7. Section 550.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

8. Section 550.801 is revised to read as follows:

Sec. 550.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 550.802-550.804 and 500.806 [Removed]

8a. Sections 550.802 through 550.804 and 500.806 are removed.

Secs. 550.805 and 550.807 [Redesignated as Secs. 550.802 and 550.803]

8b. Sections 550.805 and 550.807 are redesignated as Secs. 550.802

and 550.803, respectively.

Subpart I--Miscellaneous

9. Section 550.901 is revised to read as follows:

Sec. 550.901 Paperwork Reduction Act notice.

The information collection requirements in Sec. 550.560(d) have

been approved by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act (44 U.S.C. 3507(j)) and assigned control

number 1505-0093. For approval by OMB under the Paperwork Reduction Act

of information collections relating to recordkeeping and reporting

requirements, to licensing procedures (including those pursuant to

statements of licensing policy), and to other procedures, see

Sec. 501.901 of this chapter. An agency may not conduct or sponsor, and

a person is not required to respond to, a collection of information

unless it displays a valid control number assigned by OMB.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

1. The authority citation for part 560 is revised to read as

follows:

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 2349aa-9; 31

U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104

Stat. 890 (28 U.S.C. 2461 note); E.O. 12613, 52 FR 41940, 3 CFR,

1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p.

332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 560.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

[[Page 45109]]

Sec. 560.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter, including part 535 of this chapter, ``Iranian Assets

Control Regulations,'' with the exception of part 501 of this chapter,

the recordkeeping and reporting requirements and license application

and other procedures of which apply to this part. * * *

* * * * *

Subpart F--Reports

3. Section 560.601 is revised to read as follows:

Sec. 560.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Sec. 560.602 [Removed and reserved]

3a. Section 560.602 is removed and reserved.

Subpart G--Penalties

Sec. 560.701 [Amended]

4. Section 560.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

5. Section 560.801 is revised to read as follows:

Sec. 560.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 560.802-560.804 and 560.807 [Removed]

5a. Sections 560.802 through 560.804 and 560.807 are removed.

Secs. 560.805 and 560.806 [Redesignated as Secs. 560.802 and 560.803]

5b. Sections 560.805 and 560.806 are redesignated as Secs. 560.802

and 560.803, respectively.

Subpart I--Paperwork Reduction Act

6. Section 560.901 is revised to read as follows:

Sec. 560.901 Paperwork Reduction Act notice.

The specific information collection requirements in Sec. 560.603

have been approved by the Office of Management and Budget (``OMB'')

under the Paperwork Reduction Act (44 U.S.C. 3507(j)) and assigned

control number 1505-0106. For approval by OMB under the Paperwork

Reduction Act of information collections relating to recordkeeping and

reporting requirements, to licensing procedures (including those

pursuant to statements of licensing policy), and to other procedures,

see Sec. 501.901 of this chapter. An agency may not conduct or sponsor,

and a person is not required to respond to, a collection of information

unless it displays a valid control number assigned by OMB.

PART 575--IRAQI SANCTIONS REGULATIONS

1. The authority citation for part 575 is revised to read as

follows:

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c; Pub.

L. 101-513, 104 Stat. 2047-55 (50 U.S.C. 1701 note); 31 U.S.C.

321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat.

890 (28 U.S.C. 2461 note); E.O. 12722, 55 FR 31803, 3 CFR, 1990

Comp., p. 294; E.O. 12724, 55 FR 33089, 3 CFR, 1992 Comp., p. 317;

E.O. 12817, 57 FR 48433, 3 CFR, 1992 Comp., p. 317.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 575.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 575.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 575.201 is amended by adding new paragraph (c) to read

as follows:

Sec. 575.201 Prohibited transactions involving property in which the

Government of Iraq has an interest; transactions with respect to

securities.

* * * * *

(c) When a transaction results in the blocking of funds at a

financial institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--General Definitions

4. The note at the end of Sec. 575.306 is amended by adding a

sentence to the end of the note to read as follows:

Sec. 575.306 Government of Iraq.

* * * * *

Note to Sec. 575.306: * * * Section 501.807 of this chapter sets

forth the procedures to be followed by persons seeking

administrative reconsideration of their designation or that of a

vessel as blocked, or who wish to assert that the circumstances

resulting in the designation are no longer applicable.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

5. Section 575.503 is amended by removing paragraph (h) and by

adding a note to the end of the section to read as follows:

Sec. 575.503 Payments and transfers to blocked accounts in U.S.

financial institutions.

* * * * *

Note to Sec. 575.503: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 575.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 575.701 [Amended]

7. Section 557.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

8. Section 575.801 is revised to read as follows:

Sec. 575.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 575.802-575.804 and 575.806 [Removed]

8a. Sections 575.802 through 575.804 and 575.806 are removed.

Sec. 575.805 [Redesignated as Sec. 575.802]

8b. Section 575.805 is redesignated as Sec. 575.802.

[[Page 45110]]

Subpart I--Paperwork Reduction Act

9. Section 575.901 is revised to read as follows:

Sec. 575.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

PART 585--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO)

AND BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND

HERZEGOVINA SANCTIONS REGULATIONS

1. The authority citation for part 585 is revised to read as

follows:

Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 49

U.S.C. 40106; 50 U.S.C. 1601-1651, 1701-1706; Pub.L. 101-410, 104

Stat 890 (28 U.S.C. 2461 note); E.O. 12808, 57 FR 23299, 3 CFR, 1992

Comp., p. 305; E.O. 12810, 57 FR 24347, 3 CFR, 1992 Comp., p. 307;

E.O. 12831, 58 FR 5253, 3 CFR, 1993 Comp., p. 576; E.O. 12846, 58 FR

25771, 3 CFR, 1993 Comp., p. 501; E.O. 12934, 59 FR 54117, 3 CFR,

1994 Comp., p. 930.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 585.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 585.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 585.201 is amended by adding a new sentence to the end

of the note to Sec. 585.201(c) and by adding new paragraph (e) to read

as follows:

Sec. 585.201 Prohibited transactions involving blocked property;

transactions with respect to securities.

* * * * *

(c) * * *

Note to Sec. 585.201(c): * * * Section 501.807 of this chapter

sets forth the procedures to be followed by persons seeking

administrative reconsideration of their designation or that of a

vessel as blocked, or who wish to assert that the circumstances

resulting in the designation are no longer applicable.

* * * * *

(e) When a transaction results in the blocking of funds at a

financial institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--General Definitions

4. The note at the end of Sec. 585.311 is amended by adding a

sentence to the end of the note to read as follows:

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

* * * * *

Note to Sec. 585.311: * * * Section 501.807 of this chapter sets

forth the procedures to be followed by persons seeking

administrative reconsideration of their designation, or who wish to

assert that the circumstances resulting in the designation are no

longer applicable.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

5. Section 585.503 is amended by revising paragraph (a) and by

adding a note to the end of the section to read as follows:

Sec. 585.503 Payments and transfers to blocked accounts in U.S.

financial institutions.

(a) Any payment of funds or transfer of credit or other financial

or economic resources or assets into a blocked account in a U.S.

financial institution is authorized, provided that a transfer from a

blocked account pursuant to this authorization may only be made to

another blocked account held in the same name on the books of the same

U.S. financial institution.

* * * * *

Note to Sec. 585.503: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 585.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 585.701 [Amended]

7. Section 585.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

8. Section 585.801 is revised to read as follows:

Sec. 585.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 585.802-585.804 and 585.806 [Removed]

8a. Sections 585.802 through 585.804 and 585.806 are removed.

Sec. 585.805 [Redesignated as Sec. 585.802]

8b. Section 585.805 is redesignated as Sec. 585.802.

Subpart I--Paperwork Reduction Act

9. Section 585.901 is revised to read as follows:

Sec. 585.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

PART 590--UNITA (ANGOLA) SANCTIONS REGULATIONS

1. The authority citation for part 590 is revised to read as

follows:

Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50

U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28

U.S.C. 2461 note); E.O. 12865, 58 FR 51005, 3 CFR, 1993 Comp., p.

636.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 590.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

[[Page 45111]]

Sec. 590.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

3. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 590.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 590.701 [Amended]

4. Section 590.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by''.

Subpart H--Procedures

5. Section 590.801 is revised to read as follows:

Sec. 590.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 590.802 through 590.804 and 590.806 [Removed]

5a. Sections 590.802 through 590.804 and 590.806 are removed.

Sec. 590.805 [Redesignated as Sec. 590.802]

5b. Section 590.805 is redesignated as Sec. 590.802.

Subpart I--Paperwork Reduction Act

6. Section 590.901 is added to read as follows:

Sec. 590.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

PART 595--TERRORISM SANCTIONS REGULATIONS

1. The authority citation for part 595 is revised to read as

follows:

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,

1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);

E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319.

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 595.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 595.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

Subpart B--Prohibitions

3. Section 595.201 is amended by designating the existing paragraph

as paragraph (a) and by adding new paragraph (b) to read as follows:

Sec. 595.201 Prohibited transactions involving blocked property.

* * * * *

(b) When a transaction results in the blocking of funds at a

financial institution pursuant to this section and a party to the

transaction believes the funds have been blocked due to mistaken

identity, that party may seek to have such funds unblocked pursuant to

the administrative procedures set forth in Sec. 501.806 of this

chapter.

Subpart C--General Definitions

4. The note at the end of Sec. 595.311 is amended by adding a

sentence to the end of the note to read as follows:

Sec. 595.311 Specially designated terrorist.

* * * * *

Note to Sec. 595.311: * * * Section 501.807 of this chapter sets

forth the procedures to be followed by persons seeking

administrative reconsideration of their designation, or who wish to

assert that the circumstances resulting in the designation are no

longer applicable.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

5. Section 595.503 is amended by revising paragraph (a) and by

adding a note to the end of the section to read as follows:

Sec. 595.503 Payments and transfers to blocked accounts in U.S.

financial institutions.

(a) Any payment of funds or transfer of credit or other financial

or economic resources or assets into a blocked account in a U.S.

financial institution is authorized, provided that a transfer from a

blocked account pursuant to this authorization may only be made to

another blocked account held in the same name on the books of the same

U.S. financial institution.

* * * * *

Note to Sec. 595.503: Please refer to Sec. 501.603 of this

chapter for mandatory reporting requirements regarding financial

transfers.

6. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 595.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart G--Penalties

Sec. 595.701 [Amended]

7. Section 595.701(a) introductory text is amended by removing the

words ``as amended by'' and adding in their place the words ``as

adjusted by.''

Subpart H--Procedures

8. Section 595.801 is revised to read as follows:

Sec. 595.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 595.802-595.804 and 595.806 [Removed]

8a. Sections 595.802 through 595.804 and 595.806 are removed.

Sec. 595.805 [Redesignated as Sec. 595.802]

8b. Section 595.805 is redesignated as Sec. 595.802.

Subpart I--Paperwork Reduction Act

9. Section 595.901 is revised to read as follows:

Sec. 595.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of

[[Page 45112]]

information collections relating to recordkeeping and reporting

requirements, to licensing procedures (including those pursuant to

statements of licensing policy), and to other procedures, see

Sec. 501.901 of this chapter. An agency may not conduct or sponsor, and

a person is not required to respond to, a collection of information

unless it displays a valid control number assigned by OMB.

PART 596--TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS

1. The authority citation for part 596 is revised to read as

follows:

Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b).

Subpart A--Relation of This Part to Other Laws and Regulations

2. Section 596.101 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 596.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts

of this chapter with the exception of part 501 of this chapter, the

recordkeeping and reporting requirements and license application and

other procedures of which apply to this part. * * *

* * * * *

3. Subpart F is revised to read as follows:

Subpart F--Reports

Sec. 596.601 Records and reports.

For provisions relating to records and reports, see subpart C of

part 501 of this chapter.

Subpart H--Procedures

4. Section 596.801 is revised to read as follows:

Sec. 596.801 Procedures.

For license application procedures and procedures relating to

amendments, modifications, or revocations of licenses; administrative

decisions; rulemaking; and requests for documents pursuant to the

Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see

subpart D of part 501 of this chapter.

Secs. 596.802-596.804 and 596.806 [Removed]

4a. Sections 596.802 through 596.804 and 596.806 are removed.

Sec. 596.805 [Redesignated as Sec. 596.802]

4b. Section 596.805 is redesignated as Sec. 596.802.

Subpart I--Paperwork Reduction Act

5. Section 596.901 is revised to read as follows:

Sec. 596.901 Paperwork Reduction Act notice.

For approval by the Office of Management and Budget (``OMB'') under

the Paperwork Reduction Act of information collections relating to

recordkeeping and reporting requirements, to licensing procedures

(including those pursuant to statements of licensing policy), and to

other procedures, see Sec. 501.901 of this chapter. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless it displays a valid control number

assigned by OMB.

Dated: August 7, 1997.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: August 11, 1997.

John P. Simpson,

Acting Assistant Secretary (Enforcement).

Note: The following Form will not appear in the Code of Federal

Regulations.

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

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