[Federal Register Volume 61, Number 165 (Friday, August 23, 1996)]
[Rules and Regulations]
[Pages 43459-43462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21704]


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DEPARTMENT OF THE TREASURY
31 CFR Parts 500, 515, 535, 550, 560, and 575


Foreign Assets Control Regulations, Cuban Assets Control 
Regulations, Iranian Assets Control Regulations, Libyan Sanctions 
Regulations, Iranian Transactions Regulations, Iraqi Sanctions 
Regulations; Implementation of Section 321 of the Antiterrorism and 
Effective Death Penalty Act of 1996

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: This final rule amends the Foreign Assets Control Regulations, 
Cuban Assets Control Regulations, Iranian Assets Control Regulations, 
Libyan Sanctions Regulations, Iranian Transactions Regulations, and 
Iraqi

[[Page 43460]]

Sanctions Regulations (the ``Regulations'') to implement section 321 of 
the Antiterrorism and Effective Death Penalty Act of 1996, by adding 
the Act as authority for the Regulations and advising the public of the 
criminal penalties imposed for violations.

EFFECTIVE DATE: 12:01 a.m. EDT, August 22, 1996.

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 touch 
tone telephone.

Background

    On April 24, 1996, President Clinton signed into law the 
Antiterrorism and Effective Death Penalty Act of 1996, Pub. L. 104-132, 
110 Stat. 1214-1319 (the ``Act''). Section 321 of that Act (18 U.S.C. 
2332d) makes it a criminal offense for United States persons, except as 
provided in regulations issued by the Secretary of the Treasury in 
consultation with the Secretary of State, to engage in financial 
transactions with the governments of countries designated under section 
6(j) of the Export Administration Act (50 U.S.C. App. 2405) as 
supporting international terrorism. U.S. persons who engage in such 
transactions shall be fined under title 18, United States Code, or 
imprisoned for up to 10 years, or both. This final rule amends the 
Regulations to add the Act as an authority for the Regulations, and to 
indicate the penalties imposed for violations of the Act. No other 
change to the Regulations is made. A separate rule adding the Terrorism 
List Governments Sanctions Regulations to implement section 321 of the 
Act with respect to financial transactions of U.S. persons with the 
governments of other countries designated under section 6(j) is being 
published simultaneously in the Federal Register.
    Since the Regulations involve 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 FlexibilityAct (5 U.S.C. 601-612) does not apply.
    This rule contains no collection of information.

List of Subjects

31 CFR Part 500

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Cambodia, Exports, Fines and penalties, Finance, Foreign 
claims, Foreign investment in the United States, Foreign trade, 
Imports, Information and informational materials, International 
organizations, North Korea, Publications, Reporting and recordkeeping 
requirements, Securities, Services, Specially designated nationals, 
Travel restrictions, Trusts and estates, Vietnam.

31 CFR Part 515

    Administrative practice and procedure, Air carriers, Banks, 
banking, Blocking of assets, Cuba, Currency, Estates, Exports, Fines 
and penalties, Foreign investment in the United States, Foreign trade, 
Imports, Informational materials, Publications, Reporting and 
recordkeeping requirements, Securities, Shipping, Specially designated 
nationals, 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.

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, 
Travel restrictions.

31 CFR Part 560

    Administrative practice and procedure, Agriculture commodities, 
Banking and finance, Exports, Foreign trade, Imports, Information, 
Investments, Iran, Loans, Penalties, Reporting and recordkeeping 
requirements, Services, Specially designated nationals, 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, Travel 
restrictions.
    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: 50 U.S.C. App. 1-44; Pub. L. 104-132, 110 Stat. 1214, 
1254 (18 U.S.C. 2332d); 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.

Subpart G--Penalties

    2. Section 500.701 is amended by adding paragraph (c) to read as 
follows:


Sec. 500.701  Penalties.

* * * * *
    (c) Attention is directed to 18 U.S.C. 2332d, as added by Public 
Law 104-132, section 321, which provides that, except as provided in 
regulations issued by the Secretary of the Treasury, in consultation 
with the Secretary of State, a U.S. person, knowing or having 
reasonable cause to know that a country is designated under section 
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a 
country supporting international terrorism, engages in a financial 
transaction with the government of that country, shall be

[[Page 43461]]

fined under title 18, United States Code, or imprisoned for not more 
than 10 years, or both.

PART 515--CUBAN ASSETS CONTROL REGULATIONS

    1. The authority citation for part 515 is revised to read as 
follows:
    Authority: 50 U.S.C. App. 1-44; 22 U.S.C. 6001-6010; 22 U.S.C. 
2370(a); Pub. L. 104-114, 106 Stat. 785 (22 U.S.C. 6021-6091); Pub. 
L. 104-132, 110 Stat. 1214, 1254 (18 U.S.C. 2332d); Proc. 3447, 27 
FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 9193, 7 FR 5205, 3 
CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 1943-
1948 Comp., p. 748; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614.

Subpart G--Penalties

    2. Section 515.701 is amended by adding paragraph (e) to read as 
follows:


Sec. 515.701  Penalties.

* * * * *
    (e) Attention is directed to 18 U.S.C. 2332d, as added by Public 
Law 104-132, section 321, which provides that, except as provided in 
regulations issued by the Secretary of the Treasury, in consultation 
with the Secretary of State, a U.S. person, knowing or having 
reasonable cause to know that a country is designated under section 
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a 
country supporting international terrorism, engages in a financial 
transaction with the government of that country, shall be fined under 
title 18, United States Code, or imprisoned for not more than 10 years, 
or both.

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

    1. The authority citation for part 535 is revised to read as 
follows:
    Authority: 50 U.S.C. 1701-1706; Pub. L. 104-132, 110 Stat. 1214, 
1254 (18 U.S.C. 2332d); E.O. 12710, 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. 112; E.O. 12282, 46 FR 
7925, 3 CFR, 1981 Comp., p. 113; E.O. 12282, 46 FR 7927, 3 CFR, 1981 
Comp., p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; 
and E.O. 12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139.

Subpart G--Penalties

    2. Section 535.701 is amended by adding paragraph (c) to read as 
follows:


Sec. 535.701  Penalties.

* * * * *
    (c) Attention is directed to 18 U.S.C. 2332d, as added by Public 
Law 104-132, section 321, which provides that, except as provided in 
regulations issued by the Secretary of the Treasury, in consultation 
with the Secretary of State, a U.S. person, knowing or having 
reasonable cause to know that a country is designated under section 
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a 
country supporting international terrorism, engages in a financial 
transaction with the government of that country, shall be fined under 
title 18, United States Code, or imprisoned for not more than 10 years, 
or both.

PART 550--LIBYAN SANCTIONS REGULATIONS

    1. The authority citation for part 550 is revised to read as 
follows:
    Authority: 50 U.S.C. 1701-1706; 50 U.S.C. 1601-1651;22 U.S.C. 
287c; 49 U.S.C. App. 1514; 22 U.S.C. 2349aa-8 and 2349aa-9; Pub. L. 
104-132, 110 Stat. 1214, 1254 (18 U.S.C. 2332d); 3 U.S.C. 301; 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 G--Penalties

    2. Section 550.701 is amended by redesignating the existing 
paragraph (c) as (d) and adding paragraph (c) to read as follows:


Sec. 550.701  Penalties.

* * * * *
    (c) Attention is directed to 18 U.S.C. 2332d, as added by Public 
Law 104-132, section 321, which provides that, except as provided in 
regulations issued by the Secretary of the Treasury, in consultation 
with the Secretary of State, a U.S. person, knowing or having 
reasonable cause to know that a country is designated under section 
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a 
country supporting international terrorism, engages in a financial 
transaction with the government of that country, shall be fined under 
title 18, United States Code, or imprisoned for not more than 10 years, 
or both.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

    1. The authority citation for part 560 is revised to read as 
follows:
    Authority: 50 U.S.C. 1701-1706; 50 U.S.C. 1601-1651; 22 U.S.C. 
2349aa-9; Pub. L. 104-132, 110 Stat. 1214, 1254 (18 U.S.C. 2332d); 3 
U.S.C. 301; 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 G--Penalties

    2. Section 560.701 is amended by adding paragraph (e) to read as 
follows:


Sec. 560.701  Penalties.

* * * * *
    (e) Attention is directed to 18 U.S.C. 2332d, as added by Public 
Law 104-132, section 321, which provides that, except as provided in 
regulations issued by the Secretary of the Treasury, in consultation 
with the Secretary of State, a U.S. person, knowing or having 
reasonable cause to know that a country is designated under section 
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a 
country supporting international terrorism, engages in a financial 
transaction with the government of that country, shall be fined under 
title 18, United States Code, or imprisoned for not more than 10 years, 
or both.

PART 575--IRAQI SANCTIONS REGULATIONS

    1. The authority citation for part 575 is revised to read as 
follows:
    Authority: 50 U.S.C. 1701-1706; 50 U.S.C. 1601-1651; 22 U.S.C. 
287c; Pub. L. 101-513, 104 Stat. 2047-55 (50 U.S.C. 1701 Note); Pub. 
L. 104-132, 110 Stat. 1214, 1254 (18 U.S.C. 2332d); 3 U.S.C. 301; 
E.O. 12722, 55 FR 31803, 3 CFR, 1990 Comp., p. 294; E.O. 12724, 55 
FR 33089, 3 CFR, 1992 Comp., p. 317.

Subpart G--Penalties

    2. Section 575.701 is amended by redesignating the existing 
paragraph (d) as (e) and adding paragraph (d) to read as follows:


Sec. 575.701  Penalties.

* * * * *
    (d) Attention is directed to 18 U.S.C. 2332d, as added by Public 
Law 104-132, section 321, which provides that, except as provided in 
regulations issued by the Secretary of the Treasury, in consultation 
with the Secretary of State, a U.S. person, knowing or having 
reasonable cause to know that a country is designated under section 
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a 
country supporting international terrorism, engages in a financial 
transaction with the government of that country, shall be fined under 
title 18, United States Code, or imprisoned for not more than 10 years, 
or both.


[[Page 43462]]


    Dated: August 16, 1996.
Loren L. Dohm,
Acting Director, Office of Foreign Assets Control.
    Approved: August 20, 1996.
James E. Johnson,
Assistant Secretary (Enforcement).
[FR Doc. 96-21704 Filed 8-21-96; 3:11 pm]
BILLING CODE 4810-25-F