[Federal Register Volume 61, Number 96 (Thursday, May 16, 1996)]
[Rules and Regulations]
[Pages 24696-24697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12227]



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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 585


Federal Republic of Yugoslavia (Serbia and Montenegro) and 
Bosnian Serb-Controlled Areas of the Republic of Bosnia and Herzegovina 
Sanctions Regulations; Suspension of Sanctions Against the Bosnian 
Serbs

AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendments.

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SUMMARY: This rule amends the Federal Republic of Yugoslavia (Serbia 
and Montenegro) and Bosnian Serb-Controlled Areas of the Republic of 
Bosnia and Herzegovina Sanctions Regulations to authorize prospectively 
all transactions with respect to property and interests in property of 
the Bosnian Serb forces and authorities and any dealing by U.S. persons 
relating to trade with or in, and the exportation of services to, the 
areas of the Republic of Bosnia and Herzegovina that the Bosnian Serb 
forces control.
EFFECTIVE DATE: May 10, 1996.
FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief of Licensing, 
tel.: 202/622-2480, Dennis P. Wood, Chief of Compliance Programs, 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 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 touch 
tone telephone.

Background

    On January 16, 1996, the Treasury Department suspended 
prospectively sanctions imposed against the Federal Republic of 
Yugoslavia (Serbia and Montenegro) (the ``FRY (S&M)''). Sanctions 
against the Bosnian Serb forces and authorities and the areas of the 
Republic of Bosnia and Herzegovina that they control were to remain in 
effect until their troop withdrawal to agreed borders, consistent with 
the General Framework Agreement for Peace in Bosnia and Herzegovina and 
the Annexes thereto (collectively the ``Peace Agreement''), which was 
initialled on November 21, 1995, and signed on December 4, 1995, and 
with paragraph 2 of United Nations Security Council Resolution 1022 of 
November 22, 1995 (the ``Resolution'').
    On February 26, in keeping with paragraph 2 of the Resolution, the 
United Nations Secretary-General transmitted to the Security Council 
the report of the commander of the international force deployed in 
accordance with the Peace Agreement stating that all Bosnian Serb 
forces had withdrawn behind the zones of separation established by that 
Agreement. Accordingly, the Office of Foreign Assets Control is 
amending the Federal Republic of Yugoslavia (Serbia and Montenegro) and 
Bosnian Serb-Controlled Areas of the Republic of Bosnia and Herzegovina 
Sanctions Regulations, 31 CFR part 585 (the ``Regulations''), by adding 
Sec. 585.527 to the Regulations to authorize prospectively those 
transactions previously prohibited with respect to the Bosnian Serb 
forces and authorities and entities organized or located in those areas 
of the Republic of Bosnia and Herzegovina under their control; entities 
owned or controlled directly or indirectly by any person in, or 
resident in, those areas; and any person acting for or on behalf of any 
of the foregoing. U.S. persons are also authorized to engage in 
transactions involving the areas of the Republic of Bosnia and 
Herzegovina under the control of the Bosnian Serb forces, and services 
may be exported either from the United States or by U.S. persons to 
those areas. Property and interests in property previously blocked due 
to an interest of any person described in Sec. 585.201 remain blocked.
    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

[[Page 24697]]

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 585

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Bosnia and Herzegovina, Foreign investments in United States, 
Foreign trade, Penalties, Reporting and recordkeeping requirements, 
Securities, Specially designated nationals, Transportation, Yugoslavia.

    For the reasons set forth in the preamble, 31 CFR part 585 is 
amended as set forth below:

    1. The authority citation for part 585 continues to read as 
follows:
    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 49 U.S.C. App. 1514; 50 
U.S.C. 1601-1651; 50 U.S.C. 1701-1706; 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. 599; E.O. 12934, 59 FR 
54117, 3 CFR, 1994 Comp., p. 930.

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

    2. Section 585.527 is added to subpart E to read as follows:


Sec. 585.527  Authorization of certain new transactions with respect to 
the Bosnian Serbs.

    (a) Notwithstanding the provisions of subpart B of this part, 
transactions and activities otherwise prohibited by Secs. 585.201(c) 
(blocked property), 585.217(b) (entry of U.S. vessels into riverine 
ports), 585.218(a) (insofar as that paragraph relates to trade in 
Bosnian Serb-controlled areas of Bosnia and Herzegovina), and 
585.218(b) (services to Bosnian Serb-controlled areas), are hereby 
authorized on or after May 10, 1996, provided that no such transaction 
results in a debit to an account blocked prior to May 10, 1996, or a 
transfer of property blocked prior to May 10, 1996, unless such debit 
or transfer is independently authorized by or pursuant to this part.
    (b) The authorizations contained in this section do not eliminate 
the need to comply with regulatory requirements not administered by the 
Office of Foreign Assets Control, including aviation, financial and 
trade requirements administered by other federal agencies.

    Dated: April 23, 1996.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: May 2, 1996.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff & Law Enforcement).

[FR Doc. 96-12227 Filed 5-10-96; 3:39 pm]
BILLING CODE 4810-25-F