[Federal Register Volume 62, Number 164 (Monday, August 25, 1997)]
[Rules and Regulations]
[Pages 45098-45114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22378]



[[Page 45097]]

_______________________________________________________________________

Part V





Department of the Treasury





_______________________________________________________________________



Office of Foreign Assets Control



_______________________________________________________________________



31 CFR Part 500, et al.



Reporting and Procedures Regulations; Consolidation and Standardization 
of Information Collection Provisions, Etc.; Final Rule

  Federal Register / Vol. 62, No. 164 / Monday, August 25, 1997 / Rules 
and Regulations  

[[Page 45098]]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 500, 501, 505, 515, 535, 536, 550, 560, 575, 585, 590, 
595, and 596


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

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: The Office of Foreign Assets Control (``OFAC'') is issuing the 
Reporting and Procedures Regulations. This new part simplifies--by 
consolidating and standardizing in a single part--common provisions on 
collections of information in existing OFAC regulations. Those 
collections are eliminated from the individual parts of 31 CFR chapter 
V. This final rule includes an initial and annual requirement to report 
on blocked assets or retained funds transfers--as well as periodic 
reports on funds transfers rejected by U.S. financial institutions--for 
administrative and foreign policy formulation purposes. The rule also 
requires reports on U.S. litigation and other dispute resolution 
proceedings where the proceedings may affect blocked assets or funds 
retained by banks that have stopped violative transfers. In addition, 
new procedures are set forth for persons seeking the unblocking of 
funds they believe have been blocked due to mistaken identity, or 
seeking administrative review of their designation or that of a vessel 
as blocked. Finally, the reporting requirements and licensing and other 
procedures of the new part are made applicable to transactions that 
have become subject to economic sanctions programs for which 
implementation and administration are delegated to the Office of 
Foreign Assets Control. The final rule also makes conforming amendments 
and technical corrections to the various parts of 31 CFR chapter V.

EFFECTIVE DATE: August 25, 1997.

FOR FURTHER INFORMATION CONTACT: Daniel A. Yorks, Blocked Assets 
Division (tel.: 202/622-2440); Dennis P. Wood, Chief, Compliance 
Programs Division (tel.: 202/622-2490); or William B. Hoffman, Chief 
Counsel (tel.: 202/622-2410), Office of Foreign Assets Control, 
Department of the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document is available as an electronic file on The Federal 
Bulletin Board the day of publication in the Federal Register. By 
modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for 
disk or paper copies. This file is available for downloading without 
charge in WordPerfect 5.1, ASCII, and Adobe Acrobat TM readable (*.PDF) 
formats. For Internet access, the address for use with the World Wide 
Web (Home Page), Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The 
document is also accessible for downloading in ASCII format without 
charge from Treasury's Electronic Library (``TEL'') in the ``Business, 
Trade and Labor Mall'' of the FedWorld bulletin board. By modem, dial 
703/321-3339, and select the self-extracting file T11FR00.EXE in TEL. 
For Internet access, use one of the following protocols: Telnet = 
fedworld.gov (192.239.93.3); World Wide Web (Home Page) = http://
www.fedworld.gov; FTP = ftp.fedworld.gov (192.239.92.205). Additional 
information concerning the programs of the Office of Foreign Assets 
Control is available for downloading from the Office's Internet Home 
Page: http://www.ustreas.gov/treasury/services/fac/fac.html, or in fax 
form through the Office's 24-hour fax-on-demand service: call 202/622-
0077 using a fax machine, fax modem, or (within the United States) a 
touch-tone telephone.

Background

    The Office of Foreign Assets Control (``OFAC'') is adding a new 
part 501 to 31 CFR chapter V (``chapter V''), consolidating and 
standardizing general information collections and license application 
and other procedures currently authorized under the Paperwork Reduction 
Act of 1995 (the ``PRA'') and contained in the Foreign Assets Control 
Regulations (part 500), Regulations Prohibiting Transactions Involving 
the Shipment of Certain Merchandise Between Foreign Countries (part 
505), Cuban Assets Control Regulations (part 515), Iranian Assets 
Control Regulations (part 535), Narcotics Trafficking Sanctions 
Regulations (part 536), Libyan Sanctions Regulations (part 550), 
Iranian Transactions Regulations (part 560), Iraqi Sanctions 
Regulations (part 575), Federal Republic of Yugoslavia (Serbia & 
Montenegro) and Bosnian Serb-Controlled Areas of the Republic of Bosnia 
and Herzegovina Sanctions Regulations (part 585), Unita (Angola) 
Sanctions Regulations (part 590), Terrorism Sanctions Regulations (part 
595), and Terrorism List Governments Sanctions Regulations (part 596). 
Part 501 also makes these information collections and licensing and 
other procedures applicable to transactions that have become subject to 
economic sanctions programs for which implementation and administration 
are delegated to OFAC, but for which implementing regulations have not 
yet been issued. This is intended to provide standardized procedures 
for requesting licenses and other actions, as well as common 
recordkeeping and reporting requirements, that will be familiar to the 
public and immediately available upon the imposition of future 
sanctions programs delegated to OFAC for implementation.
    Section 501.601 consolidates OFAC recordkeeping requirements and 
standardizes record retention periods at 5 years from the date of a 
transaction subject to the prohibitions in chapter V and 5 years from 
the date property blocked or retained (see Sec. 596.504(b) of part 596) 
under chapter V is unblocked or released. Section 501.602 consolidates 
provisions requiring reports at OFAC's demand concerning transactions 
or property subject to the prohibitions in chapter V. These provisions 
were previously found in subpart F of the individual parts of chapter 
V.
    New Sec. 501.603 establishes a comprehensive reporting system for 
property blocked pursuant to chapter V or retained pursuant to 
Sec. 596.504(b) of the Terrorism List Governments Sanctions 
Regulations, 31 CFR part 596 (the ``TLGSR''). Section 501.603 imposes 
an affirmative obligation to report information regarding such property 
within 10 days of the date the property is blocked or funds retained. 
Reports must thereafter be filed on a cumulative and comprehensive 
annual basis with respect to blocked property or retained funds. The 
reporting requirement with respect to blocked property applies to any 
form of tangible or intangible ``property'' (as defined in the 
individual parts contained in chapter V) that is blocked pursuant to 
chapter V. The first annual report is due on September 30, 1997.
    The initial and annual reporting requirement in Sec. 501.603 
replaces the current requirements contained in subparts E and F of the 
individual parts of chapter V for registration by any

[[Page 45099]]

person, including financial institutions (which term includes the terms 
``banking institution'' in parts 500, 515, and 550, ``depository 
institution'' in part 515, ``domestic bank'' in parts 500, 515, 535, 
and 550, ``financial institution'' in part 596, ``United States 
depository institution'' in part 560, and ``U.S. financial 
institution'' in parts 536, 575, 585, and 595), of blocked property 
with OFAC and for designating a person to contact for information 
concerning blocked property. The annual report form (Form TDF 90-22.50) 
is available by calling the fax-on-demand service maintained by the 
Office of Foreign Assets Control at 202/622-0077, or by downloading the 
form from the ``OFAC Press Releases and Miscellaneous Documents'' file 
library (``FAC__MISC'') located on the Government Printing Office's 
Federal Bulletin Board Online via GPO Access (Internet site: http://
fedbbs.access.gpo.gov/libs/fac__misc.htm). The report form is also 
added as an appendix to this document, but will not be published in 
chapter V. OFAC invites and will consider on a case-by-case basis 
requests to submit the information required in the annual report in 
alterative formats. The reporting requirements of Sec. 501.603 are 
necessary to monitor compliance with regulatory requirements, to 
address issues involving U.S. government and private claims, and to 
support related diplomatic negotiations.
    New Sec. 501.604 requires U.S. financial institutions to report 
funds transfers that are rejected where the funds themselves are not 
blocked under chapter V, but where the processing of the transfer would 
nonetheless facilitate an underlying transaction that is prohibited 
under other provisions contained in chapter V. Examples of instances 
wherein funds are rejected and this reporting requirement is applicable 
include funds transfer instructions (1) referencing a blocked vessel in 
the absence of references to blocked parties or financial institutions, 
(2) sending funds to a person in Iraq, (3) transferring unlicensed 
gifts or charitable donations from the Government of Syria or Sudan to 
a U.S. person, (4) crediting Iranian accounts on the books of a U.S. 
financial institution, and (5) making unauthorized transfers from U.S. 
persons to Iran or the Government of Iran. This reporting requirement 
is necessary to monitor compliance with regulatory requirements and 
replaces the current requirement in Sec. 596.603 of the TLGSR that 
financial institutions report rejected funds transfers pursuant to that 
section.
    New Sec. 501.605 requires that parties involved in litigation, 
arbitration, or other binding alternative dispute resolution 
proceedings in the United States on behalf of or against persons whose 
property is blocked or required to be retained under chapter V--or 
where the outcome of any proceeding may affect blocked property or 
retained funds--provide notice of the proceedings to OFAC, as well as 
copies of certain documents pertaining to the proceedings. They must 
also notify OFAC of certain judicial or similar actions that may affect 
blocked property or retained funds, and notify the court or other 
adjudicatory body of applicable regulatory restrictions on transfers of 
blocked property or retained funds. This reporting requirement is 
necessary to ensure that blocked property or retained funds are not 
intentionally or inadvertently transferred by judicial or similar 
action except as authorized by OFAC. This requirement also replaces 
identical reporting requirements previously contained in specific 
licenses authorizing payment of attorneys' fees by blocked persons from 
unblocked sources.
    New Sec. 501.606 makes these reporting requirements in subpart C of 
part 501 applicable to transactions subject to economic sanctions 
programs for which implementation and administration have been 
delegated to the Office of Foreign Assets Control.
    Sections 501.801-501.805 include most of the material previously 
contained in subpart H of the individual parts of chapter V governing 
licensing procedures and procedures relating to administrative 
decisions; amendments, modifications, or revocations of licenses; 
rulemaking; and requests for documents pursuant to the Freedom of 
Information and Privacy Acts.
    Section 501.801 provides procedures for requesting specific 
licenses, including application procedures under those statements of 
licensing policy contained in subpart E of the individual parts in 
chapter V, which note the availability of specific licenses for 
particular categories of transactions but do not establish requirements 
for the submission of specific information.
    Information collection provisions that require production of 
specified documentation unique to a given general license or statement 
of licensing policy will continue to be authorized separately under the 
PRA. Examples include statements of licensing policy contained in 
subpart E of the individual parts in chapter V that require the 
submission of particular, specified documents and/or information in 
license applications; quarterly reports by U.S. persons on certain 
Iran-related oil transactions by foreign affiliates pursuant to 
Sec. 560.603 of chapter V; and censuses of blocked property and claims 
previously conducted under sanctions programs administered against 
Cambodia, Vietnam, and Libya.
    This final rule institutes new administrative procedures in 
Sec. 501.806 for requesting the unblocking of funds believed to have 
been blocked due to mistaken identity. New administrative procedures 
are also set forth in Sec. 501.807 for persons seeking administrative 
reconsideration of their designation or that of a vessel as blocked, or 
who wish to assert that the circumstances resulting in the designation 
are no longer applicable. Denial of an application for removal from the 
list of designees subject to the applicable prohibitions of chapter V 
(see appendices A, B, and C to chapter V) constitutes final agency 
action for purposes of judicial review. These procedures standardize 
and codify collections of information for these purposes that were 
previously made by individual requests for specific licenses.
    New Sec. 501.808 makes these license application and other 
procedures in subpart D of part 501 applicable to transactions that 
have become subject to economic sanctions programs for which 
implementation and administration are delegated to the Office of 
Foreign Assets Control, but for which implementing regulations have not 
yet been issued.
    This final rule also makes a technical correction to the civil 
penalty provisions of each affected sanctions program to note that the 
Civil Penalties Inflation Adjustment Act of 1990, as amended by the 
Debt Collection Improvement Act of 1996, required adjustments to civil 
penalties, but did not ``amend'' the underlying statutes authorizing 
imposition of those penalties. These changes are made to Sec. 701(a) of 
parts 500, 515, 535, 550, 560, 575, 585, 590, and 595.
    Since this final rule involves a foreign affairs function, 
Executive Order 12886 and the provisions of the Administrative 
Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, 
opportunity for public participation, and delay in effective date are 
inapplicable. Because no notice of proposed rulemaking is required for 
this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not 
apply.

Paperwork Reduction Act

    The Reporting and Procedures Regulations are being issued without 
prior notice and public comment procedure pursuant to the 
Administrative Procedure Act (5 U.S.C. 553). Pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507),

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the collections of information contained in the Regulations have been 
submitted to and approved by the Office of Management and Budget 
(``OMB'') pending public comment, and have been assigned control number 
1505-0164. An agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a valid control number assigned by OMB.
    Collections of information previously authorized are contained in 
Secs. 501.601-501.602 and 501.801-501.805. Section 501.601 relates to 
the maintenance of records and Sec. 501.602 relates to OFAC demands for 
information. These provisions were previously contained in subpart F of 
the individual parts of chapter V. Sections 501.801-501.805 relate to 
licensing, decisionmaking, amendment, modification or revocation, 
rulemaking, and document request procedures previously set forth in 
subpart H of the individual parts of chapter V.
    The new collections of information are contained in Secs. 501.603, 
501.604, 501.605, 501.806, and 501.807. Section 501.603 imposes 
reporting requirements pertaining to blocked assets and retained funds 
transfers. This information is required by OFAC to monitor compliance 
with regulatory requirements, to support diplomatic negotiations 
concerning the targets of sanctions, and to support settlement 
negotiations addressing U.S. claims. Section 501.604 requires the 
filing of reports for compliance purposes by U.S. financial 
institutions where a funds transfer is not required to be blocked but 
is rejected because the underlying transaction is otherwise prohibited. 
Section 501.605 requires reporting of information pertaining to 
litigation, arbitration, and other binding alternative dispute 
resolution proceedings in the United States to prevent the intentional 
or inadvertent transfer through such proceedings of blocked property or 
retained funds. Section 501.806 sets forth the procedures to be 
followed by a person seeking to have funds released at a financial 
institution if the person believes that the funds were blocked due to 
mistaken identity. Section 501.807 sets forth the procedures to be 
followed by persons seeking administrative reconsideration of their 
designation or that of a vessel as blocked, or who wish to assert that 
the circumstances resulting in the designation are no longer 
applicable.
    The likely respondents and recordkeepers affected by the 
information collections contained in part 501 are financial 
institutions, business organizations, and legal representatives.
    The estimated total annual reporting and/or recordkeeping burden: 
10,000 hours. The estimated annual burden per respondent/record keeper 
varies from thirty minutes to 10 hours, depending on individual 
circumstances, with an estimated average of 1.25 hours. Estimated 
number of respondents and/or record keepers: 8,000. Estimated annual 
frequency of responses: 1-12.
    Comments are invited on: (a) Whether these new or restated 
collections of information are necessary for the proper performance of 
the functions of the agency, including whether the information has 
practical utility; (b) the accuracy of the agency's estimate of the 
burden of the collections of information; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and (e) estimates 
of capital or start-up costs and costs of operation, maintenance, and 
purchase of services to provide information.
    Comments concerning the above information, the accuracy of 
estimated average annual burden, and suggestions for reducing this 
burden should be directed to OMB, Paperwork Reduction Project, control 
number 1505-0164, Washington, DC '20503, with a copy to the Office of 
Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania 
Ave., NW--Annex, Washington, D.C. 20220. Any such comments should be 
submitted not later than October 24, 1997. Comments on aspects of this 
final rule other than those involving collections of information 
subject to the PRA should not be sent to OMB.

List of Subjects

31 CFR Part 500

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

31 CFR Part 501

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Foreign trade, Reporting and recordkeeping requirements

31 CFR Part 505

    Administrative practice and procedure, Banks, banking, COCOM, 
Communist countries, Exports, Finance, Foreign trade, Penalties, 
Reporting and recordkeeping requirements.

31 CFR Part 515

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

31 CFR Part 535

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Currency, Foreign investment in the United States, Iran, 
Penalties, Reporting and recordkeeping requirements, Securities, 
Terrorism.

31 CFR Part 536

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Narcotics trafficking, Penalties, Reporting and recordkeeping 
requirements, Specially designated narcotics traffickers, Transfer of 
assets.

31 CFR Part 550

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Exports, Foreign investment, Foreign trade, Government of 
Libya, Imports, Libya, Loans, Penalties, Reporting and recordkeeping 
requirements, Securities, Services, Specially designated nationals, 
Terrorism, Travel restrictions.

31 CFR Part 560

    Administrative practice and procedure, Agriculture commodities, 
Banks, banking, Exports, Foreign trade, Imports, Information, 
Investments, Iran, Loans, Penalties, Reporting and recordkeeping 
requirements, Services, Specially designated nationals, Terrorism, 
Transportation.

31 CFR Part 575

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Exports, Foreign trade, Humanitarian aid, Imports, Iraq, Oil 
imports, Penalties, Petroleum, Petroleum products, Reporting and 
recordkeeping requirements, Specially designated nationals, Terrorism, 
Travel restrictions.

[[Page 45101]]

31 CFR Part 585

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Bosnian Serbs, Exports, Federal Republic of Yugoslavia (Serbia 
and Montenegro), Foreign trade, Imports, Intellectual property, Loans, 
Penalties, Reporting and recordkeeping requirements, Securities, 
Services, Shipping, Telecommunications, Transfer of assets, Vessels.

31 CFR Part 590

    Administrative practice and procedure, Angola, Exports, Foreign 
trade, National Union for the Total Independence of Angola, Penalties, 
Reporting and recordkeeping requirements, Shipping, UNITA, Vessels.

31 CFR Part 595

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Penalties, Reporting and recordkeeping requirements, Specially 
designated terrorists, Terrorism, Transfer of assets.

31 CFR Part 596

    Administrative practice and procedure, Banks, banking, Cuba, 
Penalties, Iran, Iraq, Libya, North Korea, Reporting and recordkeeping 
requirements, Sudan, Syria, Terrorism, Transfer of assets.
    For the reasons set forth in the preamble, 31 CFR chapter V is 
amended as follows:

PART 500--FOREIGN ASSETS CONTROL REGULATIONS

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

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. App. 1-
44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 
7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p. 748.

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

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

    2. Section 500.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

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


Sec. 500.201  Transactions involving designated foreign countries or 
their nationals; effective date.

* * * * *
    (e) When a transaction results in the blocking of funds at a 
banking institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--General Definitions

    4. The note at the end of Sec. 500.306 is amended by adding a 
sentence to the end of the note to read as follows:


Sec. 500.306  Specially designated national.

* * * * *
    Note to Sec. 500.306: * * * Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation or that of a 
vessel as blocked, or who wish to assert that the circumstances 
resulting in the designation are no longer applicable.

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

    5. Section 500.508 is amended by removing paragraph (f) and by 
adding a note to the end of the section to read as follows:


Sec. 500.508  Payments to blocked accounts in domestic banks.

* * * * *
    Note to Sec. 500.508: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 500.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 500.701  [Amended]

    7. Section 500.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    8. Section 500.801 is revised to read as follows:


Sec. 500.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 500.802--500.806 and 500.809  [Removed]

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


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

    8b. Sections 500.807 and 500.808 are redesignated as Secs. 500.802 
and 500.803, respectively.

Subpart I--Miscellaneous Provisions

    9. Section 500.901 is revised to read as follows:


Sec. 500.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.
    10. Part 501 is added to read as follows:

PART 501--REPORTING AND PROCEDURES REGULATIONS

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

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

Subpart B--Definitions

501.301  Definitions.

Subpart C--Reports

501.601  Records and recordkeeping requirements.
501.602  Reports to be furnished on demand.
501.603  Reports on blocked property.
501.604  Reports by U.S. financial institutions on rejected funds 
transfers.
501.605  Reports on litigation, arbitration, and dispute resolution 
proceedings.

[[Page 45102]]

501.606  Reporting and recordkeeping requirements applicable to 
economic sanctions programs.

Subpart D--Procedures

501.801  Licensing.
501.802  Decisions.
501.803  Amendment, modification, or revocation.
501.804  Rulemaking.
501.805  Rules governing availability of information.
501.806  Procedures for unblocking funds believed to have been 
blocked due to mistaken identity.
501.807  Procedures governing removal of names from appendices A, B, 
and C to this chapter.
501.808  License application and other procedures applicable to 
economic sanctions programs.

Subpart E--Paperwork Reduction Act

501.901  Paperwork Reduction Act notice.

    Authority: 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1701-
1706; 50 U.S.C. App. 1-44.

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


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

    This part sets forth standard reporting and recordkeeping 
requirements and license application and other procedures governing 
transactions regulated pursuant to other parts codified in this 
chapter, as well as to economic sanctions programs for which 
implementation and administration are delegated to the Office of 
Foreign Assets Control. Substantive prohibitions and policies 
particular to each economic sanctions program are not contained in this 
part but are set forth in the particular part of this chapter dedicated 
to that program, or, in the case of economic sanctions programs not yet 
implemented in regulations, in the applicable executive order or other 
authority. License application procedures and reporting requirements 
set forth in this part govern transactions undertaken pursuant to 
general or specific licenses, the criteria for which are set forth in 
subpart E of the individual parts in this chapter. Statements of 
licensing policy contained in subpart E of the individual parts in this 
chapter, however, may contain additional information collection 
provisions that require production of specified documentation unique to 
a given general license or statement of licensing policy.

Subpart B--Definitions


Sec. 501.301  Definitions.

    Definitions of terms used in this part are found in subpart C of 
the part within this chapter applicable to the relevant application, 
record, report, procedure or transaction. In the case of economic 
sanctions programs for which implementation and administration are 
delegated to the Office of Foreign Assets Control but for which 
regulations have not yet been issued, the definitions of terms in this 
part are governed by definitions contained in the implementing statute 
or Executive order.

Subpart C--Reports


Sec. 501.601  Records and recordkeeping requirements.

    Except as otherwise provided, every person engaging in any 
transaction subject to the provisions of this chapter shall keep a full 
and accurate record of each such transaction engaged in, regardless of 
whether such transaction is effected pursuant to license or otherwise, 
and such record shall be available for examination for at least 5 years 
after the date of such transaction. Except as otherwise provided, every 
person holding property blocked pursuant to the provisions of this 
chapter or funds transfers retained pursuant to Sec. 596.504(b) of this 
chapter shall keep a full and accurate record of such property, and 
such record shall be available for examination for the period of time 
that such property is blocked and for at least 5 years after the date 
such property is unblocked.


Sec. 501.602  Reports to be furnished on demand.

    Every person is required to furnish under oath, in the form of 
reports or otherwise, from time to time and at any time as may be 
required by the Director, Office of Foreign Assets Control, complete 
information relative to any transaction, regardless of whether such 
transaction is effected pursuant to license or otherwise, subject to 
the provisions of this chapter or relative to any property in which any 
foreign country or any national thereof has any interest of any nature 
whatsoever, direct or indirect. The Director may require that such 
reports include the production of any books of account, contracts, 
letters or other papers connected with any such transaction or 
property, in the custody or control of the persons required to make 
such reports. Reports with respect to transactions may be required 
either before or after such transactions are completed. The Director 
may, through any person or agency, conduct investigations, hold 
hearings, administer oaths, examine witnesses, receive evidence, take 
depositions, and require by subpoena the attendance and testimony of 
witnesses and the production of all books, papers, and documents 
relating to any matter under investigation, regardless of whether any 
report has been required or filed in connection therewith.


Sec. 501.603  Reports on blocked property.

    (a) Who must report--(1) Holders of blocked property. Any person, 
including a financial institution, holding property blocked pursuant to 
this chapter must report. The requirement includes financial 
institutions that receive and block payments or transfers. This 
requirement is mandatory and applies to all U.S. persons (or persons 
subject to U.S. jurisdiction in the case of parts 500 and 515 of this 
chapter) who have in their possession or control any property or 
interests in property blocked pursuant to this chapter.
    (2) Primary responsibility to report. A report may be filed on 
behalf of a holder of blocked property by an attorney, agent, or other 
person. Primary responsibility for reporting blocked property, however, 
rests with the actual holder of the property, or the person exercising 
control over property located outside the United States, with the 
following exceptions: primary responsibility for reporting any trust 
assets rest with the trustee; and primary responsibility for reporting 
real property rests with any U.S. co-owner, legal representative, 
agent, or property manager in the United States. No person is excused 
from filing a report by reason of the fact that another person has 
submitted a report with regard to the same property, except upon actual 
knowledge of the report filed by such other person. Reports filed are 
regarded as privileged and confidential.
    (3) Financial institutions. For purposes of this section, the term 
``financial institution'' shall include a banking institution, domestic 
bank, United States depository institution, financial institution, or 
U.S. financial institution, as those terms are defined in the 
applicable part of this chapter.
    (b) What must be reported--(1) Initial reports--(i) When reports 
are due. Reports are required to be filed within 10 business days from 
the date that property becomes blocked. This reporting requirement 
includes payments or transfers that are received and blocked by 
financial institutions.
    (ii) Contents of reports. Initial reports on blocked property shall 
describe the owner or account party, the property, its location, any 
existing or new account number or similar reference necessary to 
identify the property, actual or estimated value and the date it was 
blocked, and shall include the name and

[[Page 45103]]

address of the holder, along with the name and telephone number of a 
contact person from whom compliance information can be obtained. If the 
report is filed by a financial institution and involves the receipt of 
a payment or transfer of funds which are blocked by the financial 
institution, the report shall also include a photocopy of the payment 
or transfer instructions received and shall confirm that the payment 
has been deposited into a new or existing blocked account which is 
labeled as such and is established in the name of, or contains a means 
of clearly identifying the interest of, the individual or entity 
subject to blocking pursuant to the requirements of this chapter.
    (2) Annual reports--(i) When reports are due. A comprehensive 
report on all blocked property held as of June 30 of the current year 
shall be filed annually by September 30. The first annual report is due 
September 30, 1997.
    (ii) Contents of reports. Annual reports shall be filed using Form 
TDF 90-22.50, Annual Report of Blocked Property. Copies of Form TDF 90-
22.50 may be obtained directly from the Office of Foreign Assets 
Control, by calling the fax-on-demand service maintained by the Office 
of Foreign Assets Control at 202/622-0077, or by downloading the form 
from the ``OFAC Press Releases and Miscellaneous Documents'' file 
library (``FAC__MISC'') located on the Government Printing Office's 
Federal Bulletin Board Online via GPO Access (Internet site: http://
fedbbs.access.gpo.gov/libs/fac__misc.htm). Photocopies of the report 
form may be used. Requests to submit the information required on Form 
TDF 90-22.50 in an alternative format developed by the reporter are 
invited and will be considered by the Office of Foreign Assets Control 
on a case-by-case basis. A copy of reports filed using form TDF 90-
22.50 or in alternative formats must be retained for the reporter's 
records.
    (c) Reports on retained funds pursuant to Sec. 596.504(b) of this 
chapter. The reporting requirements set forth in this section are 
applicable to any financial institution retaining funds pursuant to 
Sec. 596.504(b) of this chapter, except that the account name shall 
reflect the name of the person whose interest required retention of the 
funds.
    (d) Where to report. All reports must be filed with the Office of 
Foreign Assets Control, Compliance Programs Division, U.S. Treasury 
Department, 1500 Pennsylvania Avenue NW--Annex, Washington, DC 20220.


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

    (a) Who must report. Any financial institution that rejects a funds 
transfer where the funds are not blocked under the provisions of this 
chapter, but where processing the transfer would nonetheless violate, 
or facilitate an underlying transaction that is prohibited under, other 
provisions contained in this chapter, must report. For purposes of this 
section, the term ``financial institution'' shall include a banking 
institution, depository institution or United States depository 
institution, domestic bank, financial institution or U.S. financial 
institution, as those terms are defined in the applicable part of this 
chapter.
    (b) Rejected transfers. Examples of transactions involving rejected 
funds transfers include funds transfer instructions:
    (1) Referencing a blocked vessel but where none of the parties or 
financial institutions involved in the transaction is a blocked person;
    (2) Sending funds to a person in Iraq;
    (3) Transferring unlicensed gifts or charitable donations from the 
Government of Syria or Sudan to a U.S. person;
    (4) Crediting Iranian accounts on the books of a U.S. financial 
institution; and
    (5) Making unauthorized transfers from U.S. persons to Iran or the 
Government of Iran.
    (c) When reports are due. Reports are required to be filed within 
10 business days by any financial institution rejecting instructions to 
execute payments or transfers involving underlying transactions 
prohibited by the provisions of this chapter.
    (d) What must be reported. The report shall include the name and 
address of the transferee financial institution, the date of the 
transfer, the amount of the payment transfer, and a photocopy of the 
payment or transfer instructions received, and shall state the basis 
for the rejection of the transfer instructions. The report shall also 
provide the name and telephone number of a contact person at the 
transferee financial institution from whom compliance information may 
be obtained.
    (e) Where to report. Reports must be filed with the Office of 
Foreign Assets Control, Compliance Programs Division, U.S. Treasury 
Department, 1500 Pennsylvania Avenue NW--Annex, Washington, DC 20220.


Sec. 501.605  Reports on litigation, arbitration, and dispute 
resolution proceedings.

    (a) U.S. persons (or persons subject to the jurisdiction of the 
United States in the case of parts 500 and 515 of this chapter) 
participating in litigation, arbitration, or other binding alternative 
dispute resolution proceedings in the United States on behalf of or 
against persons whose property or interests in property are blocked or 
whose funds have been retained pursuant to Sec. 596.504(b) of this 
chapter, or when the outcome of any proceeding may affect blocked 
property or retained funds, must:
    (1) Provide notice of such proceedings upon their commencement or 
upon submission or receipt of documents bringing the proceedings within 
the terms of the introductory text to this paragraph (a);
    (2) Submit copies of all pleadings, motions, memoranda, exhibits, 
stipulations, correspondence, and proposed orders or judgments 
(including any proposed final judgment or default judgment) submitted 
to the court or other adjudicatory body, and all orders, decisions, 
opinions, or memoranda issued by the court, to the Chief Counsel, 
Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue, NW--Annex, Washington, DC 20220, within 10 days of 
filing, submission or issuance. This paragraph (a)(2) shall not apply 
to discovery requests or responses, documents filed under seal, or 
requests for procedural action not seeking action dispositive of the 
proceedings (such as requests for extension of time to file); and
    (3) Report by immediate facsimile transmission to the Chief 
Counsel, Office of Foreign Assets Control, at facsimile number 202/622-
1911, the scheduling of any hearing or status conference in the 
proceedings whenever it appears that the court or other adjudicatory 
body may issue an order or judgment in the proceedings (including a 
final judgment or default judgment) or is considering or may decide any 
pending request dispositive of the merits of the proceedings or of any 
claim raised in the proceedings.
    (b) The reporting requirements of paragraph (a) of this section do 
not apply to proceedings to which the Office of Foreign Assets Control 
is a party.
    (c) Persons initiating proceedings subject to the reporting 
requirements of this section must notify the court or other 
adjudicatory body of the restrictions set forth under the applicable 
part in this chapter governing the transfer of blocked property or 
funds retained pursuant to Sec. 596.504(b) of this chapter, including 
the prohibition on any unlicensed attachment, judgment, decree, lien, 
execution, garnishment or other judicial process with respect to

[[Page 45104]]

any property in which, on or after the applicable effective date, there 
existed an interest of any person whose property and property interests 
were subject to blocking pursuant to this chapter or were subject to 
retention pursuant to Sec. 596.504(b) of this chapter.


Sec. 501.606  Reporting and recordkeeping requirements applicable to 
economic sanctions programs.

    The reporting and recordkeeping requirements set forth in this 
subpart are applicable to economic sanctions programs for which 
implementation and administration have been delegated to the Office of 
Foreign Assets Control.

Subpart D--Procedures


Sec. 501.801  Licensing.

    (a) General licenses. General licenses have been issued authorizing 
under appropriate terms and conditions certain types of transactions 
which are subject to the prohibitions contained in this chapter. All 
such licenses are set forth in subpart E of each part contained in this 
chapter. General licenses may also be issued authorizing under 
appropriate terms and conditions certain types of transactions which 
are subject to prohibitions contained in economic sanctions programs 
the implementation and administration of which have been delegated to 
the Director of the Office of Foreign Assets Control but which are not 
yet codified in this chapter. It is the policy of the Office of Foreign 
Assets Control not to grant applications for specific licenses 
authorizing transactions to which the provisions of an outstanding 
general license are applicable. Persons availing themselves of certain 
general licenses may be required to file reports and statements in 
accordance with the instructions specified in those licenses. Failure 
to file such reports or statements will nullify the authority of the 
general license.
    (b) Specific licenses--(1) General course of procedure. 
Transactions subject to the prohibitions contained in this chapter, or 
to prohibitions the implementation and administration of which have 
been delegated to the Director of the Office of Foreign Assets Control, 
which are not authorized by general license may be effected only under 
specific licenses.
    (2) Applications for specific licenses. Applications for specific 
licenses to engage in any transactions prohibited by or pursuant to 
this chapter or sanctions programs that have been delegated to the 
Director of the Office of Foreign Assets Control for implementation and 
administration may be filed by letter with the Office of Foreign Assets 
Control. Any person having an interest in a transaction or proposed 
transaction may file an application for a license authorizing such 
transaction, but the applicant for a specific license is required to 
make full disclosure of all parties in interest to the transaction so 
that a decision on the application may be made with full knowledge of 
all relevant facts and so that the identity and location of the persons 
who know about the transaction may be easily ascertained in the event 
of inquiry.
    (3) Information to be supplied. The applicant must supply all 
information specified by relevant instructions and/or forms, and must 
fully disclose the names of all parties who are concerned with or 
interested in the proposed transaction. If the application is filed by 
an agent, the agent must disclose the name of his principal(s). Such 
documents as may be relevant shall be attached to each application as a 
part of such application, except that documents previously filed with 
the Office of Foreign Assets Control may, where appropriate, be 
incorporated by reference in such application. Applicants are required 
to supply their taxpayer identifying number pursuant to 31 U.S.C. 7701, 
which number may be used for purposes of collecting and reporting on 
any delinquent amounts arising out of the applicant's relationship with 
the United States Government. Applicants may be required to furnish 
such further information as is deemed necessary to a proper 
determination by the Office of Foreign Assets Control. Any applicant or 
other party in interest desiring to present additional information may 
do so at any time before or after decision. Arrangements for oral 
presentation should be made with the Office of Foreign Assets Control.
    (4) Effect of denial. The denial of a license does not preclude the 
reopening of an application or the filing of a further application. The 
applicant or any other party in interest may at any time request 
explanation of the reasons for a denial by correspondence or personal 
interview.
    (5) Reports under specific licenses. As a condition for the 
issuance of any license, the licensee may be required to file reports 
with respect to the transaction covered by the license, in such form 
and at such times and places as may be prescribed in the license or 
otherwise.
    (6) Issuance of license. Licenses will be issued by the Office of 
Foreign Assets Control acting on behalf of the Secretary of the 
Treasury or licenses may be issued by the Secretary of the Treasury 
acting directly or through any specifically designated person, agency, 
or instrumentality.
    (7) Address. License applications, reports, and inquiries should be 
addressed to the appropriate division or individual within the Office 
of Foreign Assets Control, or to its Director, at the following 
address: Office of Foreign Assets Control, U.S. Department of the 
Treasury, 1500 Pennsylvania Avenue, NW--Annex, Washington, DC 20220.


Sec. 501.802  Decisions.

    The Office of Foreign Assets Control will advise each applicant of 
the decision respecting filed applications. The decision of the Office 
of Foreign Assets Control acting on behalf of the Secretary of the 
Treasury with respect to an application shall constitute final agency 
action.


Sec. 501.803  Amendment, modification, or revocation.

    The provisions of this part and any rulings, licenses (whether 
general or specific), authorizations, instructions, orders, or forms 
issued hereunder may be amended, modified, or revoked at any time.


Sec. 501.804  Rulemaking.

    (a) All rules and other public documents are issued by the Director 
of the Office of Foreign Assets Control. In general, rulemaking by the 
Office of Foreign Assets Control involves foreign affairs functions of 
the United States, and for that reason is exempt from the requirements 
under the Administrative Procedure Act (5 U.S.C. 553) for notice of 
proposed rulemaking, opportunity for public comment, and delay in 
effective date.
    (b) Any interested person may petition the Director of the Office 
of Foreign Assets Control in writing for the issuance, amendment, or 
repeal of any rule.


Sec. 501.805  Rules governing availability of information.

    (a) The records of the Office of Foreign Assets Control which are 
required by the Freedom of Information Act (5 U.S.C. 552) to be made 
available to the public shall be made available in accordance with the 
definitions, procedures, payment of fees, and other provisions of the 
regulations on the Disclosure of Records of the Departmental Offices 
and of other bureaus and offices of the Department of the Treasury 
issued under 5 U.S.C. 552 and published at 31 CFR part 1.
    (b) The records of the Office of Foreign Assets Control which are 
required by the Privacy Act (5 U.S.C. 552a) to be made available to an

[[Page 45105]]

individual shall be made available in accordance with the definitions, 
procedures, requirements for payment of fees, and other provisions of 
the Regulations on the Disclosure of Records of the Departmental 
Offices and of other bureaus and offices of the Department of the 
Treasury issued under 5 U.S.C. 552a and published at 31 CFR part 1.
    (c) Any form issued for use in connection with this chapter may be 
obtained in person or by writing to the Office of Foreign Assets 
Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, 
NW--Annex, Washington, DC 20220, or by calling 202/622-2480.


Sec. 501.806  Procedures for unblocking funds believed to have been 
blocked due to mistaken identity.

    When a transaction results in the blocking of funds at a financial 
institution pursuant to the applicable regulations of this chapter and 
a party to the transaction believes the funds have been blocked due to 
mistaken identity, that party may seek to have such funds unblocked 
pursuant to the following administrative procedures:
    (a) Any person who is a party to the transaction may request the 
release of funds which the party believes to have been blocked due to 
mistaken identity.
    (b) Requests to release funds which a party believes to have been 
blocked due to mistaken identity must be made in writing and addressed 
to the Office of Foreign Assets Control, 1500 Pennsylvania Avenue, NW--
Annex, Washington, DC 20220, or sent by facsimile transmission to 202/
622-1657.
    (c) The written request to release funds must include the name, 
address, telephone number, and (where available) fax number of the 
party seeking the release of the funds. For individuals, the inclusion 
of a social security number is voluntary but will facilitate resolution 
of the request. For corporations or other entities, the application 
should include its principal place of business, the state of 
incorporation or organization, and the name and telephone number of the 
appropriate person to contact regarding the application.
    (d) A request to release funds should include the following 
information, where known, concerning the transaction:
    (1) The name of the financial institution in which the funds are 
blocked;
    (2) The amount blocked;
    (3) The date of the blocking;
    (4) The identity of the original remitter of the funds and any 
intermediary financial institutions;
    (5) The intended beneficiary of the blocked transfer;
    (6) A description of the underlying transaction including copies of 
related documents (e.g., invoices, bills of lading, promissory notes, 
etc.);
    (7) The nature of the applicant's interest in the funds; and
    (8) A statement of the reasons why the applicant believes the funds 
were blocked due to mistaken identity.
    (e) Upon receipt of the materials required by paragraph (d) of this 
section, OFAC may request additional material from the applicant 
concerning the transaction pursuant to Sec. 501.602.
    (f) Following review of all applicable submissions, the Director of 
the Office of Foreign Assets Control will determine whether to release 
the funds. In the event the Director determines that the funds should 
be released, the Office of Foreign Assets Control will direct the 
financial institution to return the funds to the appropriate party.
    (g) For purposes of this section, the term ``financial 
institution'' shall include a banking institution, depository 
institution or United States depository institution, domestic bank, 
financial institution or U.S. financial institution, as those terms are 
defined in the applicable part of this chapter.


Sec. 501.807  Procedures governing removal of names from appendices A, 
B, and C to this chapter.

    Persons seeking administrative reconsideration of their designation 
or that of a vessel as blocked, or who wish to assert that the 
circumstances resulting in the designation are no longer applicable, 
may seek to have the designation rescinded pursuant to the following 
administrative procedures:
    (a) A specially designated national (``SDN''), specially designated 
terrorist (``SDT''), or specially designated narcotics trafficker 
(``SDNT'') (collectively, a ``designated person''), or a person owning 
a majority interest in a blocked vessel, may request disclosure of the 
factual basis for designation and, subject to the limitations contained 
in paragraph (c) of this section, review factual materials relied upon 
by the Office of Foreign Assets Control in designating the person or 
vessel.
    (b) Requests to review such information must be made in writing and 
addressed to the Director, Office of Foreign Assets Control, U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue, NW--Annex, 
Washington, DC 20220.
    (c) The Office of Foreign Assets Control will deny access to 
documents that are classified pursuant to Executive Order No. 12958 or 
similar Executive orders, or to documents that the Office deems 
privileged, or that the Office determines would not otherwise be 
available by law to a party in litigation with the Office. Similarly, 
the Office may redact materials to protect confidential or privileged 
information.
    (d) Following a review of the basis of designation, a designated 
person or person owning a majority interest in a blocked vessel may 
submit arguments or evidence that the person believes refutes the basis 
for designation, or may propose remedial steps on its part, including 
corporate reorganization, resignation of position(s) in a blocked 
organization or similar steps, which it believes would negate the basis 
for designation. A person owning a majority interest in a blocked 
vessel may propose the sale of the vessel, with the proceeds to be 
placed into a blocked interest-bearing account after deducting the 
costs incurred while the vessel was blocked and the costs of the sale.
    (e) After making a written submission, a designated person or 
person seeking the unblocking of a vessel may request a meeting with 
the Director of the Office of Foreign Assets Control; however, such 
meetings are not required, and the Director may, at his discretion, 
decline to conduct such meetings prior to making a review pursuant to 
this section.
    (f) The information submitted by the designated person or person 
seeking the unblocking of a vessel will be reviewed by the Director, 
who may request clarifying, corroborating, or other additional 
information.
    (g) For purposes of judicial review, a decision pursuant to this 
section constitutes a final agency action.


Sec. 501.808  License application and other procedures applicable to 
economic sanctions programs.

    Upon submission to the Office of Management and Budget of an 
amendment to the overall burden hours for the information collections 
imposed under this part, the license application and other procedures 
set forth in this subpart are applicable to economic sanctions programs 
for which implementation and administration have been delegated to the 
Office of Foreign Assets Control.

Subpart E--Paperwork Reduction Act


Sec. 501.901  Paperwork Reduction Act notice.

    The information collection requirements in subparts C and D have 
been approved by the Office of Management and Budget (``OMB'')

[[Page 45106]]

under the Paperwork Reduction Act (44 U.S.C. 3507(j)) and assigned 
control number 1505-0164. An agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a valid control number assigned by OMB.

PART 505--REGULATIONS PROHIBITING TRANSACTIONS INVOLVING THE 
SHIPMENT OF CERTAIN MERCHANDISE BETWEEN FOREIGN COUNTRIES

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

    Authority: 31 U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3 
CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-
1948 Comp., p. 748.


Sec. 505.40  [Amended]

    2. Section 505.40 is amended by revising the reference to 
``Secs. 500.601 and 500.602'' to read ``Secs. 501.601 and 501.602''.
    3. Section 505.60 is revised to read as follows:


Sec. 505.60  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
Sec. 500.802 and subpart D of part 501 of this chapter.

PART 515--CUBAN ASSETS CONTROL REGULATIONS

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

    Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 31 
U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-410, 104 Stat. 890 
(28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943 Comp., 
p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 1943-48 Comp., p. 748; Proc. 
3447, 27 FR 1085, 3 CFR 1959-1963 Comp., p. 157; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614.

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

    2. Section 515.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

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


Sec. 515.201  Transactions involving designated foreign countries or 
their nationals; effective date.

* * * * *
    (e) When a transaction results in the blocking of funds at a 
banking institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--General Definitions

    4. The note at the end of Sec. 515.306 is amended by adding a 
sentence to the end of the note to read as follows:


Sec. 515.306  Specially designated national.

* * * * *
    Note to Sec. 515.306: * * * Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation or that of a 
vessel as blocked, or who wish to assert that the circumstances 
resulting in the designation are no longer applicable.

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

    5. Section 515.508 is amended by removing paragraph (f) and by 
adding a note to the end of the section to read as follows:


Sec. 515.508  Payments to blocked accounts in domestic banks.

* * * * *
    Note to Sec. 515.508: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 515.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 515.701  [Amended]

    7. Section 515.701(a) introductory text is amended by removing the 
words ``as amended by'' and by adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    8. Section 515.801 is revised to read as follows:


Sec. 515.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 515.802-500.806 and 515.809  [Removed]

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


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

    8b. Sections 515.807 and 515.808 are redesignated as Secs. 515.802 
and 515.803, respectively.

Subpart I--Miscellaneous Provisions

    9. Section 515.901 is revised to read as follows:


Sec. 515.901  Paperwork Reduction Act notice.

    Collection of information on TDF 90-22.39, ``Declaration, Travel to 
Cuba,'' has been approved by the Office of Management and Budget 
(``OMB'') under the Paperwork Reduction Act (44 U.S.C. 3507(j)) and 
assigned control number 1505-0118. For approval by OMB under the 
Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

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

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1701-
1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 
12170, 44 FR 65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 
24099, 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 
1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR 1981 Comp., p. 
104; E.O. 12279, 46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 
46 FR 7921, 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 
CFR, 1981 Comp., p. 110; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., 
p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O.

[[Page 45107]]

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

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

    2. Section 535.101 is amended by removing the first two sentences 
of paragraph (a) and adding a new sentence in their place to read as 
follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

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

    3. Section 535.508 is amended by removing paragraph (f) and by 
adding a note to the end of the section to read as follows:


Sec. 535.508  Payments to blocked accounts in domestic banks.

* * * * *
    Note to Sec. 535.508: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    4. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 535.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 535.701  [Amended]

    5. Section 535.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.
    6. Subpart H is revised to read as follows:

Subpart H--Procedures


Sec. 535.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.

Subpart I--Miscellaneous Provisions

    7. Section 535.905 is revised to read as follows:


Sec. 535.905  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1641, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415.

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

    2. Section 536.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

    3. Section 536.201 is amended by designating the existing paragraph 
as paragraph (a) and by adding new paragraph (b) to read as follows:


Sec. 536.201  Prohibited transactions involving blocked property.

* * * * *
    (b) When a transaction results in the blocking of funds at a 
financial institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--General Definitions

    4. Section 536.312 is amended by adding a note to the end of the 
section to read as follows:


Sec. 536.312  Specially designated narcotics traffickers.

* * * * *
    Note to Sec. 536.312: Please refer to the appendices at the end 
of this chapter for listings of persons determined to fall within 
this definition who have been designated pursuant to this part. 
Section 501.807 of this chapter sets forth the procedures to be 
followed by persons seeking administrative reconsideration of their 
designation, or who wish to assert that the circumstances resulting 
in the designation are no longer applicable.

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

    5. Section 536.503 is amended by revising paragraph (a) and by 
adding a note to the end of the section to read as follows:


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

    (a) Any payment of funds or transfer of credit or other financial 
or economic resources or assets into a blocked account in a U.S. 
financial institution is authorized, provided that a transfer from a 
blocked account pursuant to this authorization may only be made to 
another blocked account held in the same name on the books of the same 
U.S. financial institution.
* * * * *
    Note to Sec. 536.503: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 536.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart H--Procedures

    7. Section 536.801 is revised to read as follows:


Sec. 536.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.

[[Page 45108]]

Secs. 536.802-536.804 and 536.806  [Removed]

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


Sec. 536.805  [Redesignated as Sec. 536.802]

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

Subpart I--Paperwork Reduction Act

    8. Section 536.901 is revised to read as follows:


Sec. 536.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

PART 550--LIBYAN SANCTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c, 
2349aa-8 and 2349aa-9; 31 U.S.C. 321(b); 49 U.S.C. App. 1514; 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); E.O. 12543, 51 FR 875, 3 CFR, 1986 Comp., p. 181; 
E.O. 12544, 51 FR 1235, 3 CFR, 1986 Comp., p. 183; E.O. 12801, 57 FR 
14319, 3 CFR, 1992 Comp., p. 294.

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

    2. Section 550.101 is amended by removing the first two sentences 
of paragraph (a) and adding a new sentence in their place to read as 
follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

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


Sec. 550.209  Prohibited transactions involving property in which the 
Government of Libya has an interest; transactions with respect to 
securities.

* * * * *
    (c) When a transaction results in the blocking of funds at a 
financial institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--Definitions

    4. The note at the end of Sec. 550.304 is amended by adding a 
sentence to the end of the note to read as follows:


Sec. 550.304  Government of Libya.

* * * * *
    Note to Sec. 550.304: * * * Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation or that of a 
vessel as blocked, or who wish to assert that the circumstances 
resulting in the designation are no longer applicable.

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

    5. Section 550.511 is amended by removing paragraph (g) and 
redesignating paragraph (h) as paragraph (g), by removing the words 
``paragraph (g) of this section'' from the last sentence of newly 
designated paragraph (g) and adding in their place the words ``the note 
to this section'', and by adding a note to the end of the section to 
read as follows:


Sec. 550.511  Payments and transfers to blocked accounts in domestic 
banks.

* * * * *
    Note to Sec. 550.511: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 550.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 550.701  [Amended]

    7. Section 550.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    8. Section 550.801 is revised to read as follows:


Sec. 550.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 550.802-550.804 and 500.806  [Removed]

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


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

    8b. Sections 550.805 and 550.807 are redesignated as Secs. 550.802 
and 550.803, respectively.

Subpart I--Miscellaneous

    9. Section 550.901 is revised to read as follows:


Sec. 550.901  Paperwork Reduction Act notice.

    The information collection requirements in Sec. 550.560(d) have 
been approved by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act (44 U.S.C. 3507(j)) and assigned control 
number 1505-0093. For approval by OMB under the Paperwork Reduction Act 
of information collections relating to recordkeeping and reporting 
requirements, to licensing procedures (including those pursuant to 
statements of licensing policy), and to other procedures, see 
Sec. 501.901 of this chapter. An agency may not conduct or sponsor, and 
a person is not required to respond to, a collection of information 
unless it displays a valid control number assigned by OMB.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 2349aa-9; 31 
U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 
Stat. 890 (28 U.S.C. 2461 note); E.O. 12613, 52 FR 41940, 3 CFR, 
1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 
332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356.

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

    2. Section 560.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:

[[Page 45109]]

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

    (a) This part is separate from, and independent of, the other parts 
of this chapter, including part 535 of this chapter, ``Iranian Assets 
Control Regulations,'' with the exception of part 501 of this chapter, 
the recordkeeping and reporting requirements and license application 
and other procedures of which apply to this part. * * *
* * * * *

Subpart F--Reports

    3. Section 560.601 is revised to read as follows:


Sec. 560.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.


Sec. 560.602  [Removed and reserved]

    3a. Section 560.602 is removed and reserved.

Subpart G--Penalties


Sec. 560.701  [Amended]

    4. Section 560.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    5. Section 560.801 is revised to read as follows:


Sec. 560.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 560.802-560.804 and 560.807  [Removed]

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


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

    5b. Sections 560.805 and 560.806 are redesignated as Secs. 560.802 
and 560.803, respectively.

Subpart I--Paperwork Reduction Act

    6. Section 560.901 is revised to read as follows:


Sec. 560.901  Paperwork Reduction Act notice.

    The specific information collection requirements in Sec. 560.603 
have been approved by the Office of Management and Budget (``OMB'') 
under the Paperwork Reduction Act (44 U.S.C. 3507(j)) and assigned 
control number 1505-0106. For approval by OMB under the Paperwork 
Reduction Act of information collections relating to recordkeeping and 
reporting requirements, to licensing procedures (including those 
pursuant to statements of licensing policy), and to other procedures, 
see Sec. 501.901 of this chapter. An agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless it displays a valid control number assigned by OMB.

PART 575--IRAQI SANCTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c; Pub. 
L. 101-513, 104 Stat. 2047-55 (50 U.S.C. 1701 note); 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 
890 (28 U.S.C. 2461 note); E.O. 12722, 55 FR 31803, 3 CFR, 1990 
Comp., p. 294; E.O. 12724, 55 FR 33089, 3 CFR, 1992 Comp., p. 317; 
E.O. 12817, 57 FR 48433, 3 CFR, 1992 Comp., p. 317.

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

    2. Section 575.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

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


Sec. 575.201  Prohibited transactions involving property in which the 
Government of Iraq has an interest; transactions with respect to 
securities.

* * * * *
    (c) When a transaction results in the blocking of funds at a 
financial institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--General Definitions

    4. The note at the end of Sec. 575.306 is amended by adding a 
sentence to the end of the note to read as follows:


Sec. 575.306  Government of Iraq.

* * * * *
    Note to Sec. 575.306: * * * Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation or that of a 
vessel as blocked, or who wish to assert that the circumstances 
resulting in the designation are no longer applicable.

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

    5. Section 575.503 is amended by removing paragraph (h) and by 
adding a note to the end of the section to read as follows:


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

* * * * *
    Note to Sec. 575.503: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 575.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 575.701  [Amended]

    7. Section 557.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    8. Section 575.801 is revised to read as follows:


Sec. 575.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 575.802-575.804 and 575.806  [Removed]

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


Sec. 575.805  [Redesignated as Sec. 575.802]

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

[[Page 45110]]

Subpart I--Paperwork Reduction Act

    9. Section 575.901 is revised to read as follows:


Sec. 575.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

PART 585--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) 
AND BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND 
HERZEGOVINA SANCTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 49 
U.S.C. 40106; 50 U.S.C. 1601-1651, 1701-1706; Pub.L. 101-410, 104 
Stat 890 (28 U.S.C. 2461 note); E.O. 12808, 57 FR 23299, 3 CFR, 1992 
Comp., p. 305; E.O. 12810, 57 FR 24347, 3 CFR, 1992 Comp., p. 307; 
E.O. 12831, 58 FR 5253, 3 CFR, 1993 Comp., p. 576; E.O. 12846, 58 FR 
25771, 3 CFR, 1993 Comp., p. 501; E.O. 12934, 59 FR 54117, 3 CFR, 
1994 Comp., p. 930.

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

    2. Section 585.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

    3. Section 585.201 is amended by adding a new sentence to the end 
of the note to Sec. 585.201(c) and by adding new paragraph (e) to read 
as follows:


Sec. 585.201  Prohibited transactions involving blocked property; 
transactions with respect to securities.

* * * * *
    (c) * * *
    Note to Sec. 585.201(c): * * * Section 501.807 of this chapter 
sets forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation or that of a 
vessel as blocked, or who wish to assert that the circumstances 
resulting in the designation are no longer applicable.
* * * * *
    (e) When a transaction results in the blocking of funds at a 
financial institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--General Definitions

    4. The note at the end of Sec. 585.311 is amended by adding a 
sentence to the end of the note to read as follows:


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

* * * * *
    Note to Sec. 585.311: * * * Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation, or who wish to 
assert that the circumstances resulting in the designation are no 
longer applicable.

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

    5. Section 585.503 is amended by revising paragraph (a) and by 
adding a note to the end of the section to read as follows:


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

    (a) Any payment of funds or transfer of credit or other financial 
or economic resources or assets into a blocked account in a U.S. 
financial institution is authorized, provided that a transfer from a 
blocked account pursuant to this authorization may only be made to 
another blocked account held in the same name on the books of the same 
U.S. financial institution.
* * * * *
    Note to Sec. 585.503: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.

    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 585.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 585.701  [Amended]

    7. Section 585.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    8. Section 585.801 is revised to read as follows:


Sec. 585.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 585.802-585.804 and 585.806  [Removed]

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


Sec. 585.805  [Redesignated as Sec. 585.802]

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

Subpart I--Paperwork Reduction Act

    9. Section 585.901 is revised to read as follows:


Sec. 585.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

PART 590--UNITA (ANGOLA) SANCTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); E.O. 12865, 58 FR 51005, 3 CFR, 1993 Comp., p. 
636.

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

    2. Section 590.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:

[[Page 45111]]

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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *
    3. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 590.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 590.701  [Amended]

    4. Section 590.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by''.

Subpart H--Procedures

    5. Section 590.801 is revised to read as follows:


Sec. 590.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 590.802 through 590.804 and 590.806  [Removed]

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


Sec. 590.805  [Redesignated as Sec. 590.802]

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

Subpart I--Paperwork Reduction Act

    6. Section 590.901 is added to read as follows:


Sec. 590.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

PART 595--TERRORISM SANCTIONS REGULATIONS

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

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319.

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

    2. Section 595.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *

Subpart B--Prohibitions

    3. Section 595.201 is amended by designating the existing paragraph 
as paragraph (a) and by adding new paragraph (b) to read as follows:


Sec. 595.201  Prohibited transactions involving blocked property.

* * * * *
    (b) When a transaction results in the blocking of funds at a 
financial institution pursuant to this section and a party to the 
transaction believes the funds have been blocked due to mistaken 
identity, that party may seek to have such funds unblocked pursuant to 
the administrative procedures set forth in Sec. 501.806 of this 
chapter.

Subpart C--General Definitions

    4. The note at the end of Sec. 595.311 is amended by adding a 
sentence to the end of the note to read as follows:


Sec. 595.311  Specially designated terrorist.

* * * * *
    Note to Sec. 595.311: * * * Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation, or who wish to 
assert that the circumstances resulting in the designation are no 
longer applicable.

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

    5. Section 595.503 is amended by revising paragraph (a) and by 
adding a note to the end of the section to read as follows:


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

    (a) Any payment of funds or transfer of credit or other financial 
or economic resources or assets into a blocked account in a U.S. 
financial institution is authorized, provided that a transfer from a 
blocked account pursuant to this authorization may only be made to 
another blocked account held in the same name on the books of the same 
U.S. financial institution.
* * * * *
    Note to Sec. 595.503: Please refer to Sec. 501.603 of this 
chapter for mandatory reporting requirements regarding financial 
transfers.
    6. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 595.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart G--Penalties


Sec. 595.701  [Amended]

    7. Section 595.701(a) introductory text is amended by removing the 
words ``as amended by'' and adding in their place the words ``as 
adjusted by.''

Subpart H--Procedures

    8. Section 595.801 is revised to read as follows:


Sec. 595.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 595.802-595.804 and 595.806  [Removed]

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


Sec. 595.805  [Redesignated as Sec. 595.802]

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

Subpart I--Paperwork Reduction Act

    9. Section 595.901 is revised to read as follows:


Sec. 595.901  Paperwork Reduction Act notice.

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

[[Page 45112]]

information collections relating to recordkeeping and reporting 
requirements, to licensing procedures (including those pursuant to 
statements of licensing policy), and to other procedures, see 
Sec. 501.901 of this chapter. An agency may not conduct or sponsor, and 
a person is not required to respond to, a collection of information 
unless it displays a valid control number assigned by OMB.

PART 596--TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS

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

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

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

    2. Section 596.101 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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

    (a) This part is separate from, and independent of, the other parts 
of this chapter with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. * * *
* * * * *
    3. Subpart F is revised to read as follows:

Subpart F--Reports


Sec. 596.601  Records and reports.

    For provisions relating to records and reports, see subpart C of 
part 501 of this chapter.

Subpart H--Procedures

    4. Section 596.801 is revised to read as follows:


Sec. 596.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
subpart D of part 501 of this chapter.


Secs. 596.802-596.804 and 596.806  [Removed]

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


Sec. 596.805  [Redesignated as Sec. 596.802]

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

Subpart I--Paperwork Reduction Act

    5. Section 596.901 is revised to read as follows:


Sec. 596.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of information collections relating to 
recordkeeping and reporting requirements, to licensing procedures 
(including those pursuant to statements of licensing policy), and to 
other procedures, see Sec. 501.901 of this chapter. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number 
assigned by OMB.

    Dated: August 7, 1997.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.

    Approved: August 11, 1997.
John P. Simpson,
Acting Assistant Secretary (Enforcement).
    Note: The following Form will not appear in the Code of Federal 
Regulations.

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