[Federal Register Volume 64, Number 23 (Thursday, February 4, 1999)]
[Rules and Regulations]
[Pages 5614-5615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2571]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 501


Reporting and Procedures Regulations: Procedure for Requests for 
Removal from List of Blocked Persons, Specially Designated Nationals, 
Specially Designated Terrorists, Foreign Terrorist Organizations, 
Specially Designated Narcotics Traffickers, and Blocked Vessels

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendment.

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SUMMARY: The Treasury Department is amending the Reporting and 
Procedures Regulations to modify the procedures for removal of names of 
blocked persons or vessels from the Office of Foreign Assets Control's 
list of blocked persons, specially designated nationals, specially 
designated terrorists, foreign terrorist organizations, specially 
designated narcotics traffickers, and blocked vessels.

EFFECTIVE DATE: January 29, 1999.

FOR FURTHER INFORMATION CONTACT: J. Robert McBrien, Chief, 
International Programs Division (tel.: 202/622-2420), or William B. 
Hoffman, Chief Counsel (tel.: 202/622-2410), Office of Foreign Assets 
Control, Department of the Treasury, Washington, D.C. 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 ASCII and Adobe AcrobatR 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 ``Research Mall'' of the 
FedWorld bulletin board. By modem, dial 703/321-3339, and select self-
expanding 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.treas.gov/ofac, or in fax form 
through the Office's 24-hour fax-on-demand service: call 202/622-0077 
using a fax machine, fax modem, or (within the United States) a touch-
tone telephone.

Background

    On August 25, 1997, the Office of Foreign Assets Control of the 
Treasury Department (``OFAC'') promulgated the Reporting and Procedures 
Regulations, 31 CFR part 501 (the ``Regulations''), to simplify, by 
consolidating and standardizing in a single part, common provisions on 
collections of information in existing OFAC regulations. Section 
501.807 of the Regulations described a procedure to be followed by a 
person seeking administrative reconsideration of its designation or 
that of a vessel as blocked, or who wished to assert that the 
circumstances resulting in the designation are no longer applicable. 
Section 501.807 is amended to modify the procedure set forth in that 
section.
    Because the Regulations involve a foreign affairs function, 
Executive Order 12866 and the provisions of the Administrative 
Procedure Act (5 U.S.C. 553)(the ``APA'') requiring notice of proposed 
rulemaking, opportunity for public participation, and delay in 
effective date, are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.

List of Subjects in 31 CFR Part 501

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Foreign trade, Reporting and recordkeeping requirements.
    For the reasons set forth in the preamble, 31 CFR part 501 is 
amended as set forth below:

PART 501--REPORTING AND PROCEDURES REGULATIONS

    1. The authority citation for part 501 continues to read as 
follows:

    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 D -- Procedures

    2. Section 501.807 is revised to read as follows:


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

    A person may seek administrative reconsideration of his, her or its 
designation or that of a vessel as

[[Page 5615]]

blocked, or assert that the circumstances resulting in the designation 
no longer apply, and thus seek to have the designation rescinded 
pursuant to the following administrative procedures:
    (a) A person blocked under the provisions of any part of this 
chapter, including a specially designated national, specially 
designated terrorist, or specially designated narcotics trafficker 
(collectively,``a blocked person''), or a person owning a majority 
interest in a blocked vessel may submit arguments or evidence that the 
person believes establishes that insufficient basis exists for the 
designation. The blocked person also may propose remedial steps on the 
person's part, such as corporate reorganization, resignation of persons 
from positions in a blocked entity, or similar steps, which the person 
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. This submission 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.
    (b) The information submitted by the blocked person seeking 
unblocking or by a person seeking the unblocking of a vessel will be 
reviewed by the Office of Foreign Assets Control, which may request 
clarifying, corroborating, or other additional information.
    (c) A blocked person seeking unblocking or a person seeking the 
unblocking of a vessel may request a meeting with the Office of Foreign 
Assets Control; however, such meetings are not required, and the office 
may, at its discretion, decline to conduct such meetings prior to 
completing a review pursuant to this section.
    (d) After the Office of Foreign Assets Control has conducted a 
review of the request for reconsideration, it will provide a written 
decision to the blocked person or person seeking the unblocking of a 
vessel.

    Dated: January 6, 1999.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: January 20, 1999.
Elisabeth A. Bresee,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 99-2571 Filed 1-29-99; 3:55 pm]
BILLING CODE 4810-25-F