[Federal Register Volume 59, Number 91 (Thursday, May 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11577]


[[Page Unknown]]

[Federal Register: May 12, 1994]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 565

 

Panamanian Transactions Regulations; Resolution of Claims from 
Blocked Government of Panama Assets

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendment.

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SUMMARY: The Office of Foreign Assets Control is amending the 
Panamanian Transactions Regulations to include a statement of licensing 
policy indicating that specific licenses may be issued authorizing the 
release of blocked Government of Panama funds at the request of that 
government to satisfy settlements, final judgments and arbitral awards 
with respect to claims of U.S. persons arising prior to April 5, 1990. 
The Office of Foreign Assets Control will also accept license 
applications with respect to such claims from U.S. persons seeking 
judicial orders of attachment against blocked Government of Panama 
assets in satisfaction of final judgments entered against the 
Government of Panama provided such applications are submitted no later 
than June 15, 1994.

EFFECTIVE DATE: May 9, 1994.

FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief of Licensing 
(tel.: 202/622-2480), 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 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 or call 202/512-1530 for disks or paper copies. This 
file is available in Postscript, WordPerfect 5.1 and ASCII.

Background

    Executive Order 12710 of April 5, 1990, 3 CFR, 1990 Comp., p. 282, 
terminated the national emergency declared on April 8, 1988, with 
respect to Panama, and lifted sanctions imposed against the Noriega 
regime. Pursuant to section 207(a)(2) of the International Emergency 
Economic Powers Act, 50 U.S.C. 1706(a)(2), however, the order continued 
the blocking of certain Government of Panama assets in the United 
States, with the understanding of the Government of Panama, to 
facilitate resolution of claims of U.S. persons.
    To foster the resolution of U.S. persons' claims against the 
Government of Panama arising prior to the April 5, 1990 lifting date, 
the Office of Foreign Assets Control, Department of the Treasury 
(``FAC''), is amending the Panamanian Transactions Regulations, 31 CFR 
part 565 (the ``Regulations'') to include a statement of licensing 
policy announcing that the release of blocked Government of Panama 
assets may be licensed at the request of that government to satisfy 
settlements, final judgments and arbitral awards in favor of U.S. 
persons, where the claims arose prior to April 5, 1990. In addition, 
FAC will accept license applications from U.S. persons seeking judicial 
orders of attachment against blocked Government of Panama assets in 
satisfaction of final judgments entered in favor of the applicants with 
respect to such claims against the Government of Panama, provided such 
applications are submitted no later that June 15, 1994. The term 
``Government of Panama'' for these purposes is defined in Sec. 565.303 
of the Regulations, including appendix A to part 565.

    Note: Procedures for specific license applications are set forth in 
Sec. 565.801 of the Regulations. Unlicensed transfers of blocked 
Government of Panama assets, including transfers pursuant to judicial 
order, are prohibited and are null and void as provided in 
Secs. 565.201 and 565.204. Violations of this part are punishable by 
criminal and civil penalties as provided in Secs. 565.701 through 
565.705.
    Because the Regulations involve a foreign affairs function, 
Executive Order 12866 and the provisions of the Administrative 
Procedure Act, 5 U.S.C. 553, requiring notice of proposed rulemaking, 
opportunity for public participation, and delay in effective date, are 
inapplicable. Because no notice of proposed rulemaking is required for 
this rule, the Regulatory Flexibility Act, 5 U.S.C. 601-612, does not 
apply.

List of Subjects in 31 CFR Part 565

    Panama, Blocking of assets, Foreign claims, Penalties, Reporting 
and recordkeeping requirements, Transfer of assets.
    For the reasons set forth in the preamble, 31 CFR part 565 is 
amended as follows:
PART 565--PANAMANIAN TRANSACTIONS REGULATIONS
    1. The authority citation for part 565 is revised to read as 
follows:

    Authority: 50 U.S.C. 1701-1706, E.O. 12635, 3 CFR, 1988 Comp., 
p. 563; E.O. 12710, 3 CFR, 1990 Comp., p. 282.
Subpart E----Licenses, Authorizations and Statements of Licensing 
Policy
    2. Section 565.512 is added to subpart E to read as follows:
Sec. 565.512 Licensing policy with respect to blocked Government of 
Panama Assets.
    (a) Licenses may be issued on a case-by-case basis authorizing the 
release of blocked Government of Panama assets at the request of that 
government to satisfy settlements, final judgments and arbitral awards 
with respect to claims of U.S. persons arising prior to April 5, 1990.
    (b) Licenses may be issued on a case-by-case basis authorizing U.S. 
persons to seek judicial orders of attachment against blocked 
Government of Panama assets in satisfaction of final judgments entered 
in favor of the applicants with respect to claims arising prior to 
April 5, 1990 against the Government of Panama. The term ``Government 
of Panama'' for these purposes is defined in Sec. 565.303, including 
appendix A to this part.
    (1) Applications pursuant to paragraph (b) of this section must be 
submitted to the Licensing Division of the Office of Foreign Assets 
Control not later than June 15, 1994, and must include a certified copy 
of the final judgment and evidence that the claim on which the judgment 
was entered arose against the Government of Panama prior to April 5, 
1990.
    (2) If the licensed proceedings result in a final judicial order of 
attachment against the blocked assets, a certified copy of that order 
must be submitted to the Licensing Division of the Office of Foreign 
Assets Control. Specific licenses may be issued on the basis of such 
orders authorizing release of blocked Government of Panama funds deemed 
in the attachment order to be subject to attachment to satisfy the 
applicant's final judgment.

    Dated: April 22, 1994.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: April 28, 1994.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 94-11577 Filed 5-9-94; 3:55 pm]
BILLING CODE 4810-25-F