Narcotics Trafficking Sanctions Regulations

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 536

Narcotics Trafficking Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of

the Treasury is issuing the Narcotics Trafficking Sanctions Regulations

to implement the President's declaration of a national emergency and

imposition of sanctions against significant foreign narcotics

traffickers centered in Colombia.

EFFECTIVE DATE: February 28, 1997.

FOR FURTHER INFORMATION CONTACT: Office of Foreign Assets Control,

Department of the Treasury, Washington, DC 20220; tel.: 202/622-2520.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

This document is available as an electronic file on The Federal

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

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

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

charge in WordPerfect 5.1, ASCII, and Adobe AcrobatTM readable

(*.PDF) formats. For Internet access, the address for use with the

World Wide Web (Home Page), Telnet, or FTP protocol is:

fedbbs.access.gpo.gov. The document is also accessible for downloading

in ASCII format without charge from Treasury's Electronic Library

(``TEL'') in the ``Business, Trade and Labor Mall'' of the FedWorld

bulletin board. By modem, dial 703/321-3339, and select the appropriate

self-expanding file in TEL. For Internet access, use one of the

following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide

Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov

(192.239.92.205). Additional information concerning the programs of the

Office of Foreign Assets Control is available for downloading from the

Office's Internet Home Page: http://www.ustreas.gov/treasury/services/

fac/fac.html, or in fax form through the Office's 24-hour fax-on-demand

service: call 202/622-0077 using a fax machine, fax modem, or (within

the United States) a touch-tone telephone.

Background

On October 21, 1995, the President issued Executive Order 12978,

declaring a national emergency with respect to ``the actions of

significant foreign narcotics traffickers centered in Colombia, and the

unparalleled violence, corruption, and harm that they cause in the

United States and abroad,''

[[Page 9960]]

and invoking the authority, inter alia, of the International Emergency

Economic Powers Act (50 U.S.C. 1701-1706). The order blocks all

property and interests in property of four persons listed in an Annex

to the order, as well as the property and interests in property of

other persons who are designated by the Secretary of the Treasury, in

consultation with the Attorney General and the Secretary of State. The

order also authorizes the Secretary of the Treasury, in consultation

with the Attorney General and the Secretary of State, to take such

actions, including the promulgation of rules and regulations, as may be

necessary to carry out the purposes of the order. In implementation of

the order, the Treasury Department is issuing the Narcotics Trafficking

Sanctions Regulations (the ``Regulations'').

The Regulations block all property and interests in property of (1)

foreign persons designated in Executive Order 12978; (2) foreign

persons designated by the Secretary of the Treasury, in consultation

with the Attorney General and the Secretary of State, because they are

found:

(a) to play a significant role in international narcotics

trafficking centered in Colombia; or

(b) materially to assist in, or provide financial or technological

support for or goods or services in support of, the narcotics

trafficking activities of persons designated in or pursuant to the

order.

The Regulations also block all property and interests in property

of persons determined by the Secretary of the Treasury, in consultation

with the Attorney General and the Secretary of State, to be owned or

controlled by, or to act for or on behalf of, any other designated

person. Persons coming within any of these categories are called

specially designated narcotics traffickers (``SDNTs''). Executive Order

12978 blocks all property or interests in property of SDNTs that are in

the United States, that hereinafter come within the United States, or

that are or hereafter come within the possession or control of U.S.

persons, including their overseas branches. Section 2 of Executive

Order 12978 also prohibits any transaction or dealing by U.S. persons

or in the United States in property or interests in property of SDNTs,

including any transaction that evades or avoids, or that has the

purpose of evading or avoiding, or attempts to violate, any of the

prohibitions set forth in the order.

Transactions otherwise prohibited under this part but found to be

consistent with U.S. policy may be authorized by a general license

contained in subpart E or by a specific license issued pursuant to the

procedures described in Sec. 536.801 of subpart H. Civil and criminal

penalties for violations of the Regulations are described in subpart G.

Since the Regulations involve a foreign affairs function, the

provisions of Executive Order 12866 and the Administrative Procedure

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

opportunity for public participation, and delay in effective date, are

inapplicable. Because no notice of proposed rulemaking is required for

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

apply. Wherever possible, however, it is the practice of the Office of

Foreign Assets Control to receive written submissions or hold informal

consultations with interested parties concerning any rule or other

public document.

Paperwork Reduction Act

The Regulations are being issued without prior notice and public

comment procedure pursuant to the Administrative Procedure Act (5

U.S.C. 553). Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C.

3507), the collections of information contained in the Regulations have

been submitted to and approved by the Office of Management and Budget

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

1505-0163. An agency may not conduct or sponsor, and a person is not

required to respond to, a collection of information unless the

collection of information displays a valid control number.

The collections of information in the Regulations are contained in

Secs. 536.503, 536.504, subpart F, and Sec. 536.801. This information

is required by the Office of Foreign Assets Control for licensing,

compliance, civil penalty, and enforcement purposes. This information

will be used to determine the eligibility of applicants for the

benefits provided through specific licenses, to determine whether

persons subject to the Regulations are in compliance with applicable

requirements, and to determine whether and to what extent civil penalty

or other enforcement action is appropriate. The likely respondents and

record keepers are individuals and business organizations.

The estimated total annual reporting and/or recordkeeping burden:

500 hours.

The estimated annual burden per respondent/record keeper varies

from 30 minutes to 2 hours, depending on individual circumstances, with

an estimated average of 1 hour.

Estimated number of respondents and/or record keepers: 500.

Estimated annual frequency of responses: 1-12.

Comments are invited on: (a) whether these collections of

information are necessary for the proper performance of the functions

of the agency, including whether the information has practical utility;

(b) the accuracy of the agency's estimate of the burden of the

collections of information; (c) ways to enhance the quality, utility,

and clarity of the information to be collected; (d) ways to minimize

the burden of the collection of information on respondents, including

through the use of automated collection techniques or other forms of

information technology; and (e) estimates of capital or start-up costs

and costs of operation, maintenance, and purchase of services to

provide information.

Comments concerning the above information, the accuracy of

estimated average annual burden, and suggestions for reducing this

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

number 1505-0163, Washington, DC 20503, with a copy to the Office of

Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania

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

submitted not later than May 5, 1997. Comments on aspects of the

Regulations other than those involving collections of information

should not be sent to OMB.

List of Subjects in 31 CFR Part 536

Administrative practice and procedure, Banks, banking, Blocking of

assets, Drug traffic control, Narcotics trafficking, Penalties,

Reporting and recordkeeping requirements, Specially designated

narcotics traffickers, Transfer of assets.

For the reasons set forth in the preamble, 31 CFR part 536 is added

to read as follows:

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

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

Sec.

536.101 Relation of this part to other laws and regulations.

Subpart B--Prohibitions

536.201 Prohibited transactions involving blocked property.

536.202 Effect of transfers violating the provisions of this part.

536.203 Holding of certain types of blocked property in interest-

bearing accounts.

536.204 Evasions; attempts; conspiracies.

536.205 Exempt transactions.

[[Page 9961]]

Subpart C--General Definitions

536.301 Blocked account; blocked property.

536.302 Effective date.

536.303 Entity.

536.304 Foreign person.

536.305 General license.

536.306 Information and informational materials.

536.307 Interest.

536.308 License.

536.309 Person.

536.310 Property; property interest.

536.311 Narcotics trafficking.

536.312 Specially designated narcotics trafficker.

536.313 Specific license.

536.314 Transfer.

536.315 United States.

536.316 United States person; U.S. person.

536.317 U.S. financial institution.

Subpart D--Interpretations

536.401 Reference to amended sections.

536.402 Effect of amendment.

536.403 Termination and acquisition of an interest in blocked

property.

536.404 Setoffs prohibited.

536.405 Transactions incidental to a licensed transaction.

536.406 Provision of services.

536.407 Offshore transactions.

536.408 Alleged change in ownership or control of an entity

designated as a specially designated narcotics trafficker.

536.409 Credit extended and cards issued by U.S. financial

institutions.

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

536.501 Effect of license or authorization.

536.502 Exclusion from licenses and authorizations.

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

institutions.

536.504 Investment and reinvestment of certain funds.

536.505 Entries in certain accounts for normal service charges

authorized.

536.506 Provision of certain legal services authorized.

536.507 Authorization of emergency medical services.

Subpart F--Reports

536.601 Required records.

536.602 Reports to be furnished on demand.

536.603 Registration of persons holding blocked property subject to

Sec. 536.201.

Subpart G--Penalties

536.701 Penalties.

536.702 Prepenalty notice.

536.703 Response to prepenalty notice.

536.704 Penalty notice.

536.705 Administrative collection; referral to United States

Department of Justice.

Subpart H--Procedures

536.801 Licensing.

536.802 Decisions.

536.803 Amendment, modification, or revocation.

536.804 Rulemaking.

536.805 Delegation by the Secretary of the Treasury.

536.806 Rules governing availability of information.

Subpart I--Paperwork Reduction Act

536.901 Paperwork Reduction Act notice.

Authority: 3 U.S.C. 301; 50 U.S.C. 1601-1641, 1701-1706; Pub. L.

101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 12978, 60 FR

54579 (October 24, 1995), 3 CFR, 1995 Comp., p. 415.

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

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. Differing foreign policy and national security

contexts may result in differing interpretations of similar language

among the parts of this chapter. No license or authorization contained

in or issued pursuant to those other parts authorizes any transaction

prohibited by this part. No license or authorization contained in or

issued pursuant to any other provision of law or regulation authorizes

any transaction prohibited by this part.

(b) No license or authorization contained in or issued pursuant to

this part relieves the involved parties from complying with any other

applicable laws or regulations.

Subpart B--Prohibitions

Sec. 536.201 Prohibited transactions involving blocked property.

Except as authorized by regulations, orders, directives, rulings,

instructions, licenses, or otherwise, and notwithstanding any contract

entered into or any license or permit granted prior to the effective

date, no property or interests in property of a specially designated

narcotics trafficker that are in the United States, that hereafter come

within the United States, or that are or hereafter come within the

possession or control of U.S. persons, including their overseas

branches, may be transferred, paid, exported, withdrawn or otherwise

dealt in.

Sec. 536.202 Effect of transfers violating the provisions of this

part.

(a) Any transfer after the effective date, which is in violation of

any provision of this part or of any regulation, order, directive,

ruling, instruction, license, or other authorization hereunder and

involves any property held in the name of a specially designated

narcotics trafficker or in which a specially designated narcotics

trafficker has or has had an interest since such date, is null and void

and shall not be the basis for the assertion or recognition of any

interest in or right, remedy, power or privilege with respect to such

property.

(b) No transfer before the effective date shall be the basis for

the assertion or recognition of any right, remedy, power, or privilege

with respect to, or interest in, any property held in the name of a

specially designated narcotics trafficker or in which a specially

designated narcotics trafficker has an interest, or has had an interest

since such date, unless the person with whom such property is held or

maintained, prior to such date, had written notice of the transfer or

by any written evidence had recognized such transfer.

(c) Unless otherwise provided, an appropriate license or other

authorization issued by or pursuant to the direction or authorization

of the Director of the Office of Foreign Assets Control before, during,

or after a transfer shall validate such transfer or render it

enforceable to the same extent that it would be valid or enforceable

but for the provisions of the International Emergency Economic Powers

Act, this part, and any regulation, order, directive, ruling,

instruction, or license issued hereunder.

(d) Transfers of property which otherwise would be null and void or

unenforceable by virtue of the provisions of this section shall not be

deemed to be null and void or unenforceable as to any person with whom

such property was held or maintained (and as to such person only) in

cases in which such person is able to establish to the satisfaction of

the Director of the Office of Foreign Assets Control each of the

following:

(1) Such transfer did not represent a willful violation of the

provisions of this part by the person with whom such property was held

or maintained;

(2) The person with whom such property was held or maintained did

not have reasonable cause to know or suspect, in view of all the facts

and circumstances known or available to such person, that such transfer

required a license or authorization by or pursuant to this part and was

not so licensed or authorized, or if a license or authorization did

purport to cover the transfer, that such license or authorization had

been obtained by misrepresentation of a third party or the withholding

of material facts or was otherwise fraudulently obtained; and

(3) The person with whom such property was held or maintained filed

with the Office of Foreign Assets Control a report setting forth in

full the circumstances relating to such transfer promptly upon

discovery that:

(i) Such transfer was in violation of the provisions of this part

or any

[[Page 9962]]

regulation, ruling, instruction, license, or other direction or

authorization hereunder; or

(ii) Such transfer was not licensed or authorized by the Director

of the Office of Foreign Assets Control; or

(iii) If a license did purport to cover the transfer, such license

had been obtained by misrepresentation of a third party or the

withholding of material facts or was otherwise fraudulently obtained.

Note to paragraph (d)(3): The filing of a report in accordance with

the provisions of this paragraph (d)(3) shall not be deemed evidence

that the terms of paragraphs (d)(l) and (2) of this section have been

satisfied.

(e) Unless licensed or authorized pursuant to this part, any

attachment, judgment, decree, lien, execution, garnishment, or other

judicial process is null and void with respect to any property which,

on or since the effective date, was held in the name of a specially

designated narcotics trafficker or in which there existed an interest

of a specially designated narcotics trafficker.

536.203 Holding of certain types of blocked property in interest-

bearing accounts.

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

currently holding property subject to Sec. 536.201 which, as of the

effective date or the date of receipt if subsequent to the effective

date, is not being held in an interest-bearing account, or otherwise

invested in a manner authorized by the Office of Foreign Assets Control

(e.g., Sec. 536.504), shall transfer such property to, or hold such

property or cause such property to be held in, an interest-bearing

account or interest-bearing status in a U.S. financial institution as

of the effective date or the date of receipt if subsequent to the

effective date of this section, unless otherwise authorized or directed

by the Office of Foreign Assets Control.

(2) The requirement set forth in paragraph (a)(1) of this section

shall apply to currency, bank deposits, accounts, obligations, and any

other financial or economic resources or assets, and any proceeds

resulting from the sale of tangible or intangible property. If interest

is credited to an account separate from that in which the interest-

bearing asset is held, the name of the account party on both accounts

must be the same and must clearly indicate the specially designated

narcotics trafficker having an interest in the accounts. If the account

is held in the name of a specially designated narcotics trafficker, the

name of the account to which interest is credited must be the same.

(b) For purposes of this section, the term interest-bearing account

means a blocked account in a U.S. financial institution earning

interest at rates that are commercially reasonable for the amount of

funds in the account. Except as otherwise authorized, the funds may not

be invested or held in instruments the maturity of which exceeds 90

days.

(c) This section does not apply to blocked tangible property, such

as chattels, nor does it create an affirmative obligation on the part

of the holder of such blocked tangible property to sell or liquidate

the property and put the proceeds in a blocked account. However, the

Office of Foreign Assets Control may issue licenses permitting or

directing sales of tangible property in appropriate cases.

536.204 Evasions; attempts; conspiracies.

Any transaction for the purpose of, or which has the effect of,

evading or avoiding, or which facilitates the evasion or avoidance of,

any of the prohibitions set forth in this part, is hereby prohibited.

Any attempt to violate the prohibitions set forth in this part is

hereby prohibited. Any conspiracy formed for the purpose of engaging in

a transaction prohibited by this part is hereby prohibited.

536.205 Exempt transactions.

(a) Personal communications. The prohibitions contained in this

part do not apply to any postal, telegraphic, telephonic, or other

personal communication, which does not involve the transfer of anything

of value.

(b) Information and informational materials. (1) The importation

from any country and the exportation to any country of information or

informational materials as defined in Sec. 536.306, whether commercial

or otherwise, regardless of format or medium of transmission, are

exempt from the prohibitions and regulations of this part.

(2) This section does not authorize transactions related to

information and informational materials not fully created and in

existence at the date of the transactions, or to the substantive or

artistic alteration or enhancement of informational materials, or to

the provision of marketing and business consulting services by a U.S.

person. Such prohibited transactions include, without limitation,

payment of advances for informational materials not yet created and

completed, provision of services to market, produce or co-produce,

create or assist in the creation of information and informational

materials, and payment of royalties to a specially designated narcotics

trafficker with respect to income received for enhancements or

alterations made by U.S. persons to information or informational

materials imported from a specially designated narcotics trafficker.

(3) This section does not authorize transactions incident to the

exportation of technology that is not informational material as defined

in Sec. 536.306(b)(1) or incident to the exportation of goods for use

in the transmission of any information.

(c) Travel. The prohibitions contained in this part do not apply to

transactions ordinarily incident to travel to or from any country,

including importation of accompanied baggage for personal use,

maintenance within any country including payment of living expenses and

acquisition of goods or services for personal use, and arrangement or

facilitation of such travel including non-scheduled air, sea, or land

voyages. Any transactions entered into by a specially designated

narcotics trafficker while traveling in the United States that are

outside the scope of those set forth in this paragraph are in violation

of Sec. 536.201.

Subpart C--General Definitions

Sec. 536.301 Blocked account; blocked property.

The terms blocked account and blocked property shall mean any

account or property subject to the prohibition in Sec. 536.201 held in

the name of a specially designated narcotics trafficker or in which a

specially designated narcotics trafficker has an interest, and with

respect to which payments, transfers, exportations, withdrawals, or

other dealings may not be made or effected except pursuant to an

authorization or license from the Office of Foreign Assets Control

authorizing such action.

Sec. 536.302 Effective date.

The term effective date refers to the effective date of the

applicable prohibitions and directives contained in this part which is

12:01 a.m. EDT, October 22, 1995, or, in the case of specially

designated narcotics traffickers designated after that date, the

earlier of the date on which a person receives actual or constructive

notice of such designation.

Sec. 536.303 Entity.

The term entity means a partnership, association, corporation, or

other organization, group or subgroup.

Sec. 536.304 Foreign person.

The term foreign person means any citizen or national of a foreign

state (including any such individual who is also a citizen or national

of the United

[[Page 9963]]

States), or any entity not organized solely under the laws of the

United States or existing solely in the United States, but does not

include a foreign state.

Sec. 536.305 General license.

The term general license means any license or authorization the

terms of which are set forth in this part.

Sec. 536.306 Information and informational materials.

(a) For purposes of this part, the term information and

informational materials means:

(1) Publications, films, posters, phonograph records, photographs,

microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and

news wire feeds, and other information and informational articles.

(2) To be considered informational materials, artworks must be

classified under chapter subheading 9701, 9702, or 9703 of the

Harmonized Tariff Schedule of the United States.

(b) The terms information and informational materials with respect

to U.S. exports do not include items:

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

controlled for export pursuant to section 5 of the Export

Administration Act of 1979, 50 U.S.C. App. 2401-2420 (the ``EAA''), or

section 6 of the EAA to the extent that such controls promote

nonproliferation or antiterrorism policies of the United States,

including software as defined in 15 CFR part 772 that is not publicly

available (see 15 CFR parts 734 and 772); or

(2) With respect to which acts are prohibited by 18 U.S.C. chapter

37.

Sec. 536.307 Interest.

Except as otherwise provided in this part, the term interest when

used with respect to property (e.g., ``an interest in property'') means

an interest of any nature whatsoever, direct or indirect.

Sec. 536.308 License.

Except as otherwise specified, the term license means any license

or authorization contained in or issued pursuant to this part.

Sec. 536.309 Person.

The term person means an individual or entity.

Sec. 536.310 Property; property interest.

The terms property and property interest include, but are not

limited to, money, checks, drafts, bullion, bank deposits, savings

accounts, debts, indebtedness, obligations, notes, guarantees,

debentures, stocks, bonds, coupons, any other financial instruments,

bankers acceptances, mortgages, pledges, liens or other rights in the

nature of security, warehouse receipts, bills of lading, trust

receipts, bills of sale, any other evidences of title, ownership or

indebtedness, letters of credit and any documents relating to any

rights or obligations thereunder, powers of attorney, goods, wares,

merchandise, chattels, stocks on hand, ships, goods on ships, real

estate mortgages, deeds of trust, vendors sales agreements, land

contracts, leaseholds, ground rents, real estate and any other interest

therein, options, negotiable instruments, trade acceptances, royalties,

book accounts, accounts payable, judgments, patents, trademarks or

copyrights, insurance policies, safe deposit boxes and their contents,

annuities, pooling agreements, services of any nature whatsoever,

contracts of any nature whatsoever, and any other property, real,

personal, or mixed, tangible or intangible, or interest or interests

therein, present, future or contingent.

Sec. 536.311 Narcotics trafficking.

The term narcotics trafficking means any activity undertaken

illicitly to cultivate, produce, manufacture, distribute, sell, finance

or transport, or otherwise assist, abet, conspire, or collude with

others in illicit activities relating to narcotic drugs, including, but

not limited to, cocaine.

Sec. 536.312 Specially designated narcotics trafficker.

The term specially designated narcotics trafficker means:

(a) Persons listed in the annex to Executive Order 12978 (3 CFR,

1995 Comp., p.415);

(b) Foreign persons designated by the Secretary of Treasury, in

consultation with the Attorney General and the Secretary of State,

because they are found:

(1) To play a significant role in international narcotics

trafficking centered in Colombia; or

(2) Materially to assist in, or provide financial or technological

support for or goods or services in support of, the narcotics

trafficking activities of specially designated narcotics traffickers;

and

(c) Persons determined by the Secretary of the Treasury, in

consultation with the Attorney General and the Secretary of State, to

be owned or controlled by, or to act for or on behalf of, any other

specially designated narcotics trafficker.

Sec. 536.313 Specific license.

The term specific license means any license or authorization not

set forth in this part but issued pursuant to this part.

Sec. 536.314 Transfer.

The term transfer means any actual or purported act or transaction,

whether or not evidenced by writing, and whether or not done or

performed within the United States, the purpose, intent, or effect of

which is to create, surrender, release, convey, transfer, or alter,

directly or indirectly, any right, remedy, power, privilege, or

interest with respect to any property and, without limitation upon the

foregoing, shall include the making, execution, or delivery of any

assignment, power, conveyance, check, declaration, deed, deed of trust,

power of attorney, power of appointment, bill of sale, mortgage,

receipt, agreement, contract, certificate, gift, sale, affidavit, or

statement; the making of any payment; the setting off of any obligation

or credit; the appointment of any agent, trustee, or fiduciary; the

creation or transfer of any lien; the issuance, docketing, filing, or

levy of or under any judgment, decree, attachment, injunction,

execution, or other judicial or administrative process or order, or the

service of any garnishment; the acquisition of any interest of any

nature whatsoever by reason of a judgment or decree of any foreign

country; the fulfillment of any condition; the exercise of any power of

appointment, power of attorney, or other power; or the acquisition,

disposition, transportation, importation, exportation, or withdrawal of

any security.

Sec. 536.315 United States.

The term United States means the United States, its territories and

possessions, and all areas under the jurisdiction or authority thereof.

Sec. 536.316 United States person; U.S. person.

The term United States person or U.S. person means any United

States citizen or national; permanent resident alien; entity organized

under the laws of the United States or any jurisdiction within the

United States (including foreign branches); or any person in the United

States.

Sec. 536.317 U.S. financial institution.

The term U.S. financial institution means any U.S. person

(including foreign branches) that is engaged in the business of

accepting deposits, making, granting, transferring, holding, or

brokering loans or credits, or purchasing or selling foreign exchange,

securities, commodity futures or options, or procuring purchasers and

sellers thereof, as principal or agent; including,

[[Page 9964]]

but not limited to, depository institutions, banks, savings banks,

trust companies, securities brokers and dealers, commodity futures and

options brokers and dealers, forward contract and foreign exchange

merchants, securities and commodities exchanges, clearing corporations,

investment companies, employee benefit plans, and U.S. holding

companies, U.S. affiliates, or U.S. subsidiaries of any of the

foregoing. This term includes those branches, offices and agencies of

foreign financial institutions which are located in the United States,

but not such institutions' foreign branches, offices, or agencies.

Subpart D--Interpretations

Sec. 536.401 Reference to amended sections.

Except as otherwise specified, reference to any section of this

part or to any regulation, ruling, order, instruction, direction, or

license issued pursuant to this part shall be deemed to refer to the

same as currently amended.

Sec. 536.402 Effect of amendment.

Any amendment, modification, or revocation of any section of this

part or of any order, regulation, ruling, instruction, or license

issued by or under the direction of the Director of the Office of

Foreign Assets Control shall not, unless otherwise specifically

provided, be deemed to affect any act done or omitted to be done, or

any civil or criminal suit or proceeding commenced or pending prior to

such amendment, modification, or revocation. All penalties,

forfeitures, and liabilities under any such order, regulation, ruling,

instruction, or license shall continue and may be enforced as if such

amendment, modification, or revocation had not been made.

Sec. 536.403 Termination and acquisition of an interest in blocked

property.

(a) Whenever a transaction licensed or authorized by or pursuant to

this part results in the transfer of property (including any property

interest) away from a specially designated narcotics trafficker, such

property shall no longer be deemed to be property in which a specially

designated narcotics trafficker has or has had an interest, or which is

held in the name of a specially designated narcotics trafficker, unless

there exists in the property another interest of a specially designated

narcotics trafficker, the transfer of which has not been effected

pursuant to license or other authorization.

(b) Unless otherwise specifically provided in a license or

authorization issued pursuant to this part, if property (including any

property interest) is transferred or attempted to be transferred to a

specially designated narcotics trafficker, such property shall be

deemed to be property in which there exists an interest of the

specially designated narcotics trafficker.

Sec. 536.404 Setoffs prohibited.

A setoff against blocked property (including a blocked account),

whether by a U.S. bank or other U.S. person, is a prohibited transfer

under Sec. 536.201 if effected after the effective date.

Sec. 536.405 Transactions incidental to a licensed transaction.

Any transaction ordinarily incident to a licensed transaction and

necessary to give effect thereto is also authorized, except a

transaction by an unlicensed, specially designated narcotics trafficker

or involving a debit to a blocked account or a transfer of blocked

property not explicitly authorized within the terms of the license.

Sec. 536.406 Provision of services.

(a) Except as provided in Sec. 536.205, the prohibitions contained

in Sec. 536.201 apply to services performed by U.S. persons, wherever

located:

(1) On behalf of, or for the benefit of, a specially designated

narcotics trafficker; or

(2) With respect to property interests of a specially designated

narcotics trafficker.

(b) Example: U.S. persons may not, except as authorized by the

Office of Foreign Assets Control by or pursuant to this part, provide

legal, accounting, financial, brokering, freight forwarding,

transportation, public relations, educational, or other services to a

specially designated narcotics trafficker. See Sec. 536.506, with

respect to certain authorized legal services.

Sec. 536.407 Offshore transactions.

The prohibitions contained in Sec. 536.201 apply to transactions by

U.S. persons in locations outside the United States with respect to

property which the U.S. person knows, or has reason to know, is held in

the name of a specially designated narcotics trafficker, or in which

the U.S. person knows, or has reason to know, a specially designated

narcotics trafficker has or has had an interest since the effective

date.

Sec. 536.408 Alleged change in ownership or control of an entity

designated as a specially designated narcotics trafficker.

(a) A change or alleged change in ownership or control of an entity

designated as a specially designated narcotics trafficker shall not be

the basis for removal of that entity from the list of specially

designated narcotics traffickers unless, upon investigation by the

Office of Foreign Assets Control and submission of evidence by the

entity, it is demonstrated to the satisfaction of the Director of the

Office of Foreign Assets Control that the transfer to a bona fide

purchaser at arm's length is legitimate and that the entity no longer

meets the criteria for designation under Sec. 536.312. Evidence

submitted must conclusively demonstrate that all ties with other

specially designated narcotics traffickers have been completely

severed, and may include, but is not limited to, articles of

incorporation; identification of new directors, officers, shareholders,

and sources of capital; and contracts evidencing the sale of the entity

to its new owners.

(b) Any continuing substantial financial obligations on the part of

the new owners to any specially designated narcotics traffickers,

including long-term payment plans, leases, or rents, will be considered

as evidence of continuing control of the entity by the specially

designated narcotics trafficker. Purchase of a designated entity

without ongoing substantial financial obligations to a specially

designated narcotics trafficker may nonetheless be a basis for

subsequent designation of the purchaser, if the transaction is

determined materially to assist in or provide financial support for the

narcotics trafficking activities of specially designated narcotics

traffickers for purposes of Sec. 536.312(b)(2). For example, any

acquisition transaction resulting in a direct cash transfer to or other

enrichment of a specially designated narcotics trafficker could lead to

designation of the purchaser. Mere change in name of an entity will not

be considered as constituting a change of the entity's status.

Sec. 536.409 Credit extended and cards issued by U.S. financial

institutions.

The prohibition in Sec. 536.201 on dealing in property in which a

specially designated narcotics trafficker has an interest prohibits

U.S. financial institutions from performing under any existing credit

agreements, including, but not limited to, charge cards, debit cards,

or other credit facilities issued by a U.S. financial institution to a

person designated under this part.

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

Policy

Sec. 536.501 Effect of license or authorization.

(a) No license or other authorization contained in this part, or

otherwise issued by or under the direction of the Director of the

Office of Foreign Assets

[[Page 9965]]

Control, shall be deemed to authorize or validate any transaction

effected prior to the issuance of the license, unless specifically

provided in such license or authorization.

(b) No regulation, ruling, instruction, or license authorizes any

transaction prohibited under this part unless the regulation, ruling,

instruction, or license is issued by the Office of Foreign Assets

Control and specifically refers to this part. No regulation, ruling,

instruction, or license referring to this part shall be deemed to

authorize any transaction prohibited by any provision of this chapter

unless the regulation, ruling, instruction or license specifically

refers to such provision.

(c) Any regulation, ruling, instruction, or license authorizing any

transaction otherwise prohibited under this part has the effect of

removing a prohibition or prohibitions contained in this part from the

transaction, but only to the extent specifically stated by its terms.

Unless the regulation, ruling, instruction, or license otherwise

specifies, such an authorization does not create any right, duty,

obligation, claim, or interest in, or with respect to, any property

which would not otherwise exist under ordinary principles of law.

Sec. 536.502 Exclusion from licenses and authorizations.

The Director of the Office of Foreign Assets Control reserves the

right to exclude any person, property, or transaction from the

operation of any license, or from the privileges therein conferred, or

to restrict the applicability thereof with respect to particular

persons, property, transactions, or classes thereof. Such action shall

be binding upon all persons receiving actual or constructive notice of

such exclusion or restriction.

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. This authorization is subject to the

condition that written notification from the U.S. financial institution

receiving an authorized payment or transfer is furnished to the

Compliance Programs Division, Office of Foreign Assets Control, U.S.

Treasury Department, 1500 Pennsylvania Avenue, NW--Annex, Washington,

DC 20220, within 10 days from the value date of the payment or

transfer. This notification shall confirm that the payment or transfer

has been deposited into a blocked account pursuant to this section and

Sec. 536.203 and shall provide the account number, the name and address

of the person in whose name the account is held and, if the account

party is not a specially designated narcotics trafficker, the name of

the specially designated narcotics trafficker having an interest in the

account, the name and address of the transferee U.S. financial

institution, the name and address of the transferor financial

institution, the amount of the payment or transfer, the name and

telephone number of a contact person at the transferee financial

institution from whom compliance information may be obtained, and the

name and telephone number of the person, registered with the Office of

Foreign Assets Control pursuant to Sec. 536.603, responsible for the

administration of blocked assets at the transferee financial

institution from whom records on blocked assets may be obtained.

(b) This section does not authorize any transfer from a blocked

account within the United States to an account held outside the United

States.

Sec. 536.504 Investment and reinvestment of certain funds.

(a) U.S. financial institutions are hereby authorized and directed

to invest and reinvest assets held in blocked accounts in the name of a

specially designated narcotics trafficker, subject to the following

conditions:

(1) The assets representing such investments and reinvestments are

credited to a blocked account or sub-account which is in the name of

the specially designated narcotics trafficker and which is located in

the United States or within the possession or control of a U.S. person;

and

(2) The proceeds of such investments and reinvestments are not

credited to a blocked account or sub-account under any name or

designation which differs from the name or designation of the specific

blocked account or sub-account in which such funds or securities were

held; and

(3) No immediate financial or economic benefit or access accrues

(e.g., through pledging or other use) to the specially designated

narcotics trafficker.

(b)(1) U.S. persons seeking to avail themselves of this

authorization must register with the Office of Foreign Assets Control,

Blocked Assets Division, before undertaking transactions authorized

under this section.

(2) Transactions conducted pursuant to this section must be

reported to the Office of Foreign Assets Control, Blocked Assets

Division, in a report filed no later than 10 business days following

the last business day of the month in which the transactions occurred.

Sec. 536.505 Entries in certain accounts for normal service charges

authorized.

(a) U.S. financial institutions are hereby authorized to debit any

blocked account with such U.S. financial institution in payment or

reimbursement for normal service charges owed to such U.S. financial

institution by the owner of such blocked account.

(b) As used in this section, the term normal service charge shall

include charges in payment or reimbursement for interest due; cable,

telegraph, or telephone charges; postage costs; custody fees; small

adjustment charges to correct bookkeeping errors; and, but not by way

of limitation, minimum balance charges, notary and protest fees, and

charges for reference books, photostats, credit reports, transcripts of

statements, registered mail, insurance, stationery and supplies, check

books, and other similar items.

Sec. 536.506 Provision of certain legal services authorized.

(a) The provision to or on behalf of a specially designated

narcotics trafficker of the legal services set forth in paragraph (b)

of this section is authorized, provided that all receipt of payment

therefor must be specifically licensed.

(b) Specific licenses may be issued, on a case-by-case basis,

authorizing receipt of payment of professional fees and reimbursement

of incurred expenses for the following legal services by U.S. persons

to a specially designated narcotics trafficker:

(1) Provision of legal advice and counseling on the requirements of

and compliance with the laws of any jurisdiction within the United

States, provided that such advice and counseling is not provided to

facilitate transactions that would violate any of the prohibitions

contained in this part;

(2) Representation of a specially designated narcotics trafficker

when named as a defendant in or otherwise made a party to domestic

United States legal, arbitration, or administrative proceedings;

(3) Initiation of domestic United States legal, arbitration, or

administrative proceedings in defense of property interests subject to

U.S.

[[Page 9966]]

jurisdiction of a specially designated narcotics trafficker;

(4) Representation before any federal or state agency with respect

to the imposition, administration, or enforcement of United States

sanctions against significant narcotics traffickers centered in

Colombia or specially designated narcotics traffickers; and

(5) Provision of legal services in any other context in which

prevailing United States law requires access to legal counsel at public

expense.

(c) The provision of any other legal services to a specially

designated narcotics trafficker, not otherwise authorized in or

exempted by this part, requires the issuance of a specific license.

(d) Entry into a settlement agreement affecting property or

interests in property of a specially designated narcotics trafficker or

the enforcement of any lien, judgment, arbitral award, decree, or other

order through execution, garnishment or other judicial process

purporting to transfer or otherwise alter or affect a property interest

of a specially designated narcotics trafficker is prohibited unless

specifically licensed in accordance with Sec. 536.202(e).

Sec. 536.507 Authorization of emergency medical services.

The provision of nonscheduled emergency medical services to a

specially designated narcotics trafficker located in the United States

is authorized, provided that any payment for such services requires

prior authorization by specific license.

Subpart F--Reports

Sec. 536.601 Required records.

(a) Except as otherwise provided, every person engaging in any

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

and accurate record of each transaction engaged in, regardless of

whether such transaction is effected pursuant to license or otherwise,

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

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

person holding property subject to Sec. 536.201 shall keep a full and

accurate record of such property, and such record shall be available

for examination for the period of time that such property is blocked

and for at least 5 years after the date such property is unblocked.

(b) Any person, other than an individual, required to maintain

records pursuant to this section, must designate an individual to be

responsible for providing information concerning such records to the

Office of Foreign Assets Control when so requested.

Sec. 536.602 Reports to be furnished on demand.

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

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

required, complete information relative to any transaction, regardless

of whether such transaction is effected pursuant to license or

otherwise, subject to the provisions of this part. Such reports may be

required to include the production of any books of account, contracts,

letters or other papers, connected with any such transaction or

property, in the custody or control of the person required to make such

reports. Reports with respect to transactions may be required either

before or after such transactions are completed. The Director of

Foreign Assets Control may, through any person or agency, conduct

investigations, hold hearings, administer oaths, examine witnesses,

receive evidence, take depositions, and require by subpoena the

attendance and testimony of witnesses and the production of all books,

papers, and documents relating to any matter under investigation,

regardless of whether any report has been required or filed in

connection therewith.

Sec. 536.603 Registration of persons holding blocked property subject

to Sec. 536.201.

(a) Any individual holding property subject to Sec. 536.201 must

register with the Office of Foreign Assets Control, Blocked Assets

Division, by the later of March 17, 1997, or within 10 days after the

date such property is received or becomes subject to Sec. 536.201.

(b) Any person, other than an individual, holding property subject

to Sec. 536.201 must register the name, title, address, and telephone

number of the individual designated under Sec. 536.601(b) to be

responsible for the administration of blocked assets, from whom the

Office of Foreign Assets Control can obtain information and records.

The registration shall be sent to the Blocked Assets Division, Office

of Foreign Assets Control, U.S. Treasury Department, 1500 Pennsylvania

Avenue, NW--Annex, Washington, DC 20220, by the later of March 17,

1997, or, unless notification is given pursuant to Sec. 536.503, 10

days after the date such property is received or becomes subject to

Sec. 536.201.

Subpart G--Penalties

Sec. 536.701 Penalties.

(a) Attention is directed to section 206 of the International

Emergency Economic Powers Act (50 U.S.C. 1705 -- the ``Act''), which is

applicable to violations of the provisions of any license, ruling,

regulation, order, direction or instruction issued by or pursuant to

the direction or authorization of the Secretary of the Treasury

pursuant to this part or otherwise under the Act. Section 206 of the

Act, as adjusted pursuant to the Federal Civil Penalties Inflation

Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461

note), provides that:

(1) A civil penalty of not to exceed $11,000 per violation may be

imposed on any person who violates any license, order, or regulation

issued under the Act;

(2) Whoever willfully violates any license, order, or regulation

issued under the Act shall, upon conviction, be fined not more than

$50,000, or, if a natural person, may be imprisoned for not more than

ten years, or both; and any officer, director, or agent of any

corporation who knowingly participates in such violation may be

punished by a like fine, imprisonment or both.

(b) The criminal penalties provided in the Act are subject to

increase pursuant to 18 U.S.C. 3571.

(c) Attention is also directed to 18 U.S.C. 1001, which provides

that whoever, in any matter within the jurisdiction of any department

or agency of the United States, knowingly and willfully falsifies,

conceals or covers up by any trick, scheme, or device a material fact,

or makes any false, fictitious or fraudulent statements or

representations or makes or uses any false writing or document knowing

the same to contain any false, fictitious or fraudulent statement or

entry, shall be fined under title 18, United States Code, or imprisoned

not more than five years, or both.

(d) Violations of this part may also be subject to relevant

provisions of other applicable laws.

Sec. 536.702 Prepenalty notice.

(a) When required. If the Director of the Office of Foreign Assets

Control has reasonable cause to believe that there has occurred a

violation of any provision of this part or a violation of the

provisions of any license, ruling, regulation, order, direction or

instruction issued by or pursuant to the direction or authorization of

the Secretary of the Treasury pursuant to this part or otherwise under

the

[[Page 9967]]

International Emergency Economic Powers Act, and the Director

determines that further proceedings are warranted, he shall issue to

the person concerned a notice of his intent to impose a monetary

penalty. The prepenalty notice may be issued whether or not another

agency has taken any action with respect to this matter.

(b) Contents--(1) Facts of violation. The prepenalty notice shall

describe the violation, specify the laws and regulations allegedly

violated, and state the amount of the proposed monetary penalty.

(2) Right to respond. The prepenalty notice also shall inform the

respondent of respondent's right to respond to the notice within 30

days of its mailing as to why a monetary penalty should not be imposed,

or, if imposed, why it should be in a lesser amount than proposed.

Sec. 536.703 Response to prepenalty notice.

(a) Time within which to respond. The respondent shall have 30 days

from the date of mailing of the prepenalty notice to respond in writing

to the Director of the Office of Foreign Assets Control.

(b) Form and contents of written response. The written response

need not be in any particular form, but shall contain information

sufficient to indicate that it is in response to the prepenalty notice.

It should respond to the allegations in the prepenalty notice and set

forth the reasons why the person believes the penalty should not be

imposed or, if imposed, why it should be in a lesser amount than

proposed.

(c) Informal settlement. In addition or as an alternative to a

written response to a prepenalty notice pursuant to this section, the

respondent or respondent's representative may contact the Office of

Foreign Assets Control as advised in the prepenalty notice to propose

the settlement of allegations contained in the prepenalty notice and

related matters. In the event of settlement at the prepenalty stage,

the prepenalty notice will be withdrawn, the respondent is not required

to take a written position on allegations contained in the prepenalty

notice, and the Office of Foreign Assets Control will make no final

determination as to whether a violation occurred. The amount accepted

in settlement of allegations in a prepenalty notice may vary from the

civil penalty that might finally be imposed in the event of a formal

determination of violation. In the event no settlement is reached, the

30-day period specified in paragraph (a) of this section for written

response to the prepenalty notice remains in effect unless additional

time is granted by the Office of Foreign Assets Control.

Sec. 536.704 Penalty notice.

(a) No violation. If, after considering any written response to the

prepenalty notice and any relevant facts, the Director of the Office of

Foreign Assets Control determines that there was no violation by the

respondent named in the prepenalty notice, the Director promptly shall

notify the respondent in writing of that determination and that no

monetary penalty will be imposed.

(b) Violation. If, after considering any written response to the

prepenalty notice and any relevant facts, the Director of the Office of

Foreign Assets Control determines that there was a violation by the

respondent named in the prepenalty notice, the Director promptly shall

issue a written notice of the imposition of the monetary penalty or

other available disposition on the respondent.

Sec. 536.705 Administrative collection; referral to United States

Department of Justice.

In the event that the respondent does not pay the penalty imposed

pursuant to this part or make payment arrangements acceptable to the

Director of the Office of Foreign Assets Control within 30 days of the

mailing of the written notice of the imposition of the penalty, the

matter may be referred for administrative collection measures or to the

United States Department of Justice for appropriate action to recover

the penalty in a civil suit in a Federal district court.

Subpart H--Procedures

Sec. 536.801 Licensing.

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

under appropriate terms and conditions certain types of transactions

which are subject to the prohibitions contained in this part. All such

licenses in effect on the date of publication are set forth in subpart

E of this part. It is the policy of the Office of Foreign Assets

Control not to grant applications for specific licenses authorizing

transactions to which the provisions of an outstanding general license

are applicable. Persons availing themselves of certain general licenses

may be required to file reports and statements in accordance with the

instructions specified in those licenses. Failure to file such reports

or statements will nullify the authority of the general license.

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

Transactions subject to the prohibitions contained in this part which

are not authorized by general license may be effected only under

specific licenses.

(2) Applications for specific licenses. Applications for specific

licenses to engage in any transactions prohibited by or pursuant to

this part may be filed by letter with the Office of Foreign Assets

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

transaction may file an application for a license authorizing such

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

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

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

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

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

of inquiry.

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

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

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

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

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

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

part of such application except that documents previously filed with

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

incorporated by reference. Applicants may be required to furnish such

further information as is deemed necessary to a proper determination by

the Office of Foreign Assets Control. Any applicant or other party in

interest desiring to present additional information or discuss or argue

the application may do so at any time before or after decision.

Arrangements for oral presentation should be made with the Office of

Foreign Assets Control.

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

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

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

explanation of the reasons for a denial by correspondence or personal

interview.

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

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

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

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

otherwise.

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

Foreign Assets Control acting on behalf of the Secretary of the

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

acting directly or through any

[[Page 9968]]

specifically designated person, agency, or instrumentality.

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

addressed to the appropriate section or individual within the Office of

Foreign Assets Control, or to its Director, at the following address:

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

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

Sec. 536.802 Decisions.

The Office of Foreign Assets Control will advise each applicant of

the decision respecting filed applications. The decision of the Office

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

Treasury with respect to an application shall constitute final agency

action.

Sec. 536.803 Amendment, modification, or revocation.

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

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

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

Sec. 536.804 Rulemaking.

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

Secretary of the Treasury upon recommendation of the Director of the

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

of Foreign Assets Control involves foreign affairs functions of the

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

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

proposed rulemaking, opportunity for public comment, and delay in

effective date. Wherever possible, however, it is the practice of the

Office of Foreign Assets Control to receive written submissions or hold

informal consultations with interested parties before the issuance of

any rule or other public document.

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

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

repeal of any rule.

Sec. 536.805 Delegation by the Secretary of the Treasury.

Any action which the Secretary of the Treasury is authorized to

take pursuant to Executive Order 12978 or any further executive orders

relating to the national emergency declared in Executive Order 12978

may be taken by the Director of the Office of Foreign Assets Control,

or by any other person to whom the Secretary of the Treasury has

delegated authority so to act.

Sec. 536.806 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control required by

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

the public shall be made available in accordance with the definitions,

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

the regulations on the Disclosure of Records of the Departmental

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

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

(b) The records of the Office of Foreign Assets Control required by

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

shall be made available in accordance with the definitions, procedures,

requirements for payment of fees, and other provisions of the

regulations on the Disclosure of Records of the Departmental Offices

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

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

(c) Any form issued for use in connection with the Narcotics

Trafficking Sanctions Regulations may be obtained in person or by

writing to the Office of Foreign Assets Control, U.S. Department of the

Treasury, 1500 Pennsylvania Avenue, NW--Annex, Washington, D.C. 20220,

or by calling 202/622-2520.

Subpart I--Paperwork Reduction Act

Sec. 536.901 Paperwork Reduction Act notice.

The information collection requirements in Secs. 536.503, 536.504,

subpart F, and Sec. 536.801 have been approved by the Office of

Management and Budget under the Paperwork Reduction Act and assigned

control number 1505-0163.

Dated: February 7, 1997.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: February 18, 1997.

James E. Johnson,

Assistant Secretary (Enforcement).

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

BILLING CODE 4810-25-F