[Federal Register Volume 65, Number 129 (Wednesday, July 5, 2000)]
[Rules and Regulations]
[Pages 41334-41342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16844]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 501 and 598


Reporting and Procedures Regulations; Foreign Narcotics Kingpin 
Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury is amending its Reporting and Procedures Regulations, and 
issuing the Foreign Narcotics Kingpin Sanctions Regulations, in 
implementation of the Foreign Narcotics Kingpin Designation Act.

EFFECTIVE DATE: July 5, 2000.

FOR FURTHER INFORMATION CONTACT: J. Robert McBrien, Chief, 
International Programs, tel.: 202/622-2420, or Barbara C. Hammerle, 
Deputy 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 ASCII and Adobe Acrobat 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. This document 
and additional information concerning the programs of the Office of 
Foreign Assets Control are 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 December 3, 1999, President Clinton signed into law the Foreign 
Narcotics Kingpin Designation Act, Pub. L. No. 106-120, title VIII, 113 
Stat. 1606, 1626-1636 (1999) (to be codified at 21 U.S.C. 1901-1908, 8 
U.S.C. 1182(a)(2)(C)) (the ``Act''), which provides authority for the 
application of sanctions to significant foreign narcotics traffickers 
and their organizations operating worldwide. Section 805(b) of the Act 
blocks all property and interests in property within the United States 
or within the possession or control of any United States person, which 
are owned or controlled by significant foreign narcotics traffickers, 
as identified by the President, or foreign persons designated by the 
Secretary of the Treasury, in consultation with the Attorney General, 
the Director of Central Intelligence, the Director of the Federal 
Bureau of Investigation, the Administrator of the Drug Enforcement 
Administration, the Secretary of Defense, and the Secretary of State, 
because they are found to be:
    (1) Materially assisting in, or providing financial or 
technological support for or to, or providing goods or services in 
support of, the international narcotics trafficking activities of a 
significant foreign narcotics trafficker or foreign persons designated 
by the Secretary of the Treasury pursuant to section 805(b) of the Act;
    (2) Owned, controlled, or directed by, or acting for or on behalf 
of, a significant foreign narcotics trafficker or foreign persons 
designated by the Secretary of the Treasury pursuant to section 805(b) 
of the Act; or
    (3) Playing a significant role in international narcotics 
trafficking.
    Significant foreign narcotics traffickers and persons coming within 
any of the above three categories are referred to as specially 
designated narcotics traffickers.
    Section 805(e)(1) of the Act authorizes the Secretary of the 
Treasury, in consultation with the Attorney General, the Director of 
Central Intelligence, the Director of the Federal Bureau of 
Investigation, the Administrator of the

[[Page 41335]]

Drug Enforcement Administration, the Secretary of Defense, and the 
Secretary of State, to take such actions as may be necessary to carry 
out the Act, including the promulgation of rules and regulations 
permitted under the Act. Section 806 of the Act authorizes the 
Secretary of the Treasury to issue regulations and orders as may be 
necessary for the exercise of authorities granted by the Act.
    In implementation of the Act, the Office of Foreign Assets Control 
of the Department of the Treasury is issuing the Foreign Narcotics 
Kingpin Sanctions Regulations, 31 CFR Part 598 (the ``Regulations''). 
These Regulations are separate from, and independent of, the Narcotics 
Trafficking Sanctions Regulations, 31 CFR Part 536, which implement the 
national emergency declared in Executive Order 12978 of October 21, 
1995, with respect to significant foreign narcotics traffickers 
centered in Colombia. See Sec. 598.101. Sanctions imposed and persons 
named as specially designated narcotics traffickers pursuant to 31 CFR 
part 536 are not affected by this part 598. Section 809 of the Act, 
which amends section 212(a)(2)(C) of the Immigration and Nationality 
Act, is not implemented by these Regulations.
    Subpart B of the Regulations implements section 805 of the Act. 
Specifically, section 598.201 implements section 805(a) of the Act by 
providing that specially designated narcotics traffickers are subject 
to any and all sanctions authorized by the Act until revoked or waived. 
Section 598.202 implements section 805(b) of the Act by providing that 
property and interests in property owned or controlled by specially 
designated narcotics traffickers and within the United States or within 
the possession or control of a United States person are blocked. 
Section 598.203 of the Regulations implements section 805(c)(1) of the 
Act by prohibiting transactions and dealings by U.S. persons or within 
the United States in property or interests in property of specially 
designated narcotics traffickers. Section 598.204 implements section 
805(c)(2) of the Act by prohibiting transactions that have the effect 
of evading or avoiding, and attempts or conspiracies to violate, the 
prohibitions set forth in this part. Sections 598.205 and 598.206 of 
the Regulations detail the effect of transfers of blocked property in 
violation of the Regulations and the required holding of blocked 
property in interest-bearing accounts.
    Subpart C of the Regulations implements section 808 of the Act and 
defines key terms used throughout the Regulations. Subpart D of the 
Regulations sets forth interpretive sections regarding the general 
prohibitions of subpart B.
    Transactions otherwise prohibited under this part but found to be 
consistent with U.S. policy may be authorized by a general license 
contained in subpart E or by a specific license issued pursuant to the 
procedures set forth in subpart D of part 501 of chapter V. The general 
licenses contained in subpart E include an authorization for U.S. 
financial institutions to debit blocked accounts for normal service 
charges. See Sec. 598.506. Section 598.507 authorizes the provision of 
certain legal services, provided that receipt of payment for such 
services is specifically licensed.
    Subpart F of the Regulations implements sections 806(a)-(b) of the 
Act by reference to the Reporting and Procedures Regulations in subpart 
C of 31 CFR part 501, which set forth provisions relating to required 
records and reports. Subpart G implements section 807 of the Act by 
describing the civil and criminal penalties applicable to violations of 
the Regulations. Specifically, section 598.701 sets forth the civil and 
criminal penalties prescribed in sections 807(a)-(b) of the Act, and 
section 598.706 implements section 807(c) of the Act by providing that 
civil penalties shall be subject to judicial review only to the extent 
provided in 5 U.S.C. 702.
    Subpart H provides certain administrative procedures applicable to 
this part and implements others by reference to the Reporting and 
Procedures Regulations in subpart D of 31 CFR part 501, which contain 
provisions relating to administrative procedures. Section 598.802 
implements section 805(e)(3) of the Act by clarifying that records or 
information obtained or created in the implementation of the 
Regulations are not subject to disclosure under section 552(a)(3) of 
the Freedom of Information Act (5 U.S.C. 552(a)(3)). Section 598.803 
delegates to the Office of Foreign Assets Control those actions that 
the Secretary of the Treasury is authorized to take pursuant to the 
Act. Subpart I of the Regulations sets forth a Paperwork Reduction Act 
notice.
    In addition to adding a new part 598, the Office of Foreign Assets 
Control is revising its Reporting and Procedures Regulations contained 
in 31 CFR part 501 in implementation of certain provisions of the Act. 
Pursuant to section 805(e)(3) of the Act, section 501.805(a) is amended 
to add a note clarifying the inapplicability of section 552(a)(3) of 
the Freedom of Information Act.
    In implementing the Regulations, the Office of Foreign Assets 
Control will seek to consult with foreign governments where 
appropriate. Because the Regulations involve a foreign affairs 
function, Executive Order 12866 and the provisions of the 
Administrative Procedure Act (5 U.S.C. 553) requiring notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date, are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the Regulations are 
contained in the Reporting and Procedures Regulations in 31 CFR part 
501. Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), 
those collections of information were previously approved by the Office 
of Management and Budget (``OMB'') under 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 the collection of 
information displays a valid control number.

List of Subjects in 31 CFR Part 598

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

    For the reasons set forth in the preamble, 31 CFR Chapter V is 
amended as follows:

PART 501--REPORTING AND PROCEDURES REGULATIONS

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

    Authority: 21 U.S.C. 1901-1908; 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. A note is added to paragraph (a) of Sec. 501.805 to read as 
follows:


Sec. 501.805  Rules governing availability of information.

    (a) * * *

    Note to paragraph (a) of Sec. 501.805: Records or information 
obtained or created in the implementation of part 598 of this 
chapter are not subject to disclosure under section

[[Page 41336]]

552(a)(3) of the Freedom of Information Act. See Sec. 598.802 of 
this chapter.

* * * * *
    3. Part 598 is added to read as follows:

PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS

Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
598.101   Relation of this part to other laws and regulations.
Subpart B--Prohibitions
598.201   Applicability of sanctions.
598.202   Blocking of assets.
598.203   Prohibited transactions involving blocked property.
598.204   Evasions; attempts; conspiracies.
598.205   Effect of transfers violating the provisions of this part.
598.206   Holding of funds in interest-bearing accounts; investment 
and reinvestment.
Subpart C--General Definitions
598.301   Blocked account; blocked property.
598.302   Effective date.
598.303   Entity.
598.304   Foreign Narcotics Kingpin Designation Act.
598.305   Foreign person.
598.306   General license.
598.307   Interest.
598.308   License.
598.309   Narcotic drug; controlled substance; listed chemical.
598.310   Narcotics trafficking.
598.311   Person.
598.312   Property; property interest.
598.313   Significant foreign narcotics trafficker.
598.314   Specially designated narcotics trafficker.
598.315   Specific license.
598.316   Transfer.
598.317   United States.
598.318   United States person; U.S. person.
598.319   U.S. financial institution.
Subpart D--Interpretations
598.401   Reference to amended sections.
598.402   Effect of amendment.
598.403   Termination and acquisition of an interest in blocked 
property.
598.404   Setoffs prohibited.
598.405   Transactions incidental to a licensed transaction.
598.406   Provision of services.
598.407   Offshore transactions.
598.408   Alleged change in ownership or control of an entity 
designated as a specially designated narcotics trafficker.
598.409   Credit extended and cards issued by U.S. financial 
institutions.
598.410   Payments from blocked accounts to U.S. exporters and for 
other obligations prohibited.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
598.501   General and specific licensing procedures.
598.502   Effect of license.
598.503   Exclusion from licenses.
598.504   Payments and transfers to blocked accounts in U.S. 
financial institutions.
598.505   Investment and reinvestment of certain funds.
598.506   Entries in certain accounts for normal service charges 
authorized.
598.507   Provision of certain legal services authorized.
Subpart F--Reports
598.601   Records and reports.
Subpart G--Penalties
598.701   Penalties.
598.702   Prepenalty notice.
598.703   Response to prepenalty notice; informal settlement.
598.704   Penalty imposition or withdrawal.
598.705   Administrative collection; referral to United States 
Department of Justice.
598.706   Judicial review of civil penalty.
Subpart H--Procedures
598.801   Procedures.
598.802   Availability of information pursuant to the Freedom of 
Information Act.
598.803   Delegation by the Secretary of the Treasury.
Subpart I--Paperwork Reduction Act
598.901   Paperwork Reduction Act notice.

    Authority: 3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b); 
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).

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


Sec. 598.101  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 536 of this chapter, ``Narcotics 
Trafficking Sanctions Regulations,'' with the exception of part 501 of 
this chapter, the provisions of which apply to this part. Actions taken 
pursuant to part 501 of this chapter with respect to the prohibitions 
contained in this part are considered actions taken pursuant to this 
part. Differing foreign policy and national security contexts may 
result in differing interpretations of similar language among the parts 
of this chapter. No license or authorization contained in or issued 
pursuant to those other parts authorizes any transaction prohibited by 
this part. No license or authorization contained in or issued pursuant 
to any other provision of law or regulation authorizes any transaction 
prohibited by this part.
    (b) No license contained in or issued pursuant to this part 
relieves the involved parties from complying with any other applicable 
laws or regulations.

Subpart B--Prohibitions


Sec. 598.201  Applicability of sanctions.

    A specially designated narcotics trafficker is subject to any and 
all sanctions authorized by the Foreign Narcotics Kingpin Designation 
Act and implemented in this part. The application of sanctions on any 
specially designated narcotics trafficker will remain in effect until 
revoked by the President pursuant to section 804(h)(2) of the Foreign 
Narcotics Kingpin Designation Act, waived by the President pursuant to 
section 804(g)(1) of that Act, or revoked by the Secretary of the 
Treasury pursuant to section 805(e)(1)(A) of that Act.


Sec. 598.202  Blocking of assets.

    Except to the extent provided in regulations, orders, instructions, 
licenses, or directives issued pursuant to this part, and 
notwithstanding any contract entered into or any license or permit 
granted prior to the effective date, there are blocked as of the 
effective date, and any date thereafter, all such property and 
interests in property within the United States, or within the 
possession or control of any United States person, which are owned or 
controlled by a specially designated narcotics trafficker.


Sec. 598.203  Prohibited transactions involving blocked property.

    (a) Except to the extent provided in regulations, orders, 
instructions, licenses, or directives issued pursuant to this part, and 
notwithstanding any contract entered into or any license or permit 
granted prior to the effective date, any transaction or dealing by a 
United States person, or within the United States, in property or 
interests in property of a specially designated narcotics trafficker is 
prohibited.
    (b) Unless otherwise authorized by this part or by a specific 
license expressly referring to this section, any dealing in any 
security (or evidence thereof) held within the possession or control of 
a U.S. person and either registered or inscribed in the name of or 
known to be held for the benefit of any specially designated narcotics 
trafficker is prohibited. This prohibition includes but is not limited 
to the transfer (including the transfer on the books of any issuer or 
agent thereof), disposition, transportation, importation, exportation, 
or withdrawal of any such security or the endorsement or guaranty of 
signatures on any such security.
    (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

[[Page 41337]]

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.


Sec. 598.204  Evasions; attempts; conspiracies.

    Except to the extent provided in regulations, orders, instructions, 
licenses, or directives issued pursuant to this part, and 
notwithstanding any contract entered into or any license or permit 
granted prior to the effective date, any transaction or dealing by any 
United States person, or within the United States, that evades or 
avoids, or has the effect of evading or avoiding, and any endeavor, 
attempt, or conspiracy to violate any of the prohibitions set forth in 
this part is prohibited.


Sec. 598.205  Effect of transfers violating the provisions of this 
part.

    (a) Any transfer after the effective date that is in violation of 
any provision of this part or of any regulation, order, directive, 
ruling, instruction, or license issued pursuant to this part, and that 
involves any property or interest in property of a specially designated 
narcotics trafficker is null and void and shall not be the basis for 
the assertion or recognition of any interest in or right, remedy, 
power, or privilege with respect to such property or property 
interests.
    (b) No transfer before the effective date shall be the basis for 
the assertion or recognition of any right, remedy, power, or privilege 
with respect to, or any interest in, any property or interest in 
property of a specially designated narcotics trafficker, unless the 
person with whom such property is held or maintained, prior to that 
date, had written notice of the transfer or by any written evidence had 
recognized such transfer.
    (c) Unless otherwise provided, an appropriate license or other 
authorization issued by or pursuant to the direction or authorization 
of the Director of the Office of Foreign Assets Control before, during, 
or after a transfer shall validate such transfer or make it enforceable 
to the same extent that it would be valid or enforceable but for the 
provisions of the Foreign Narcotics Kingpin Designation Act, this part, 
and any regulation, order, directive, ruling, instruction, or license 
issued pursuant to this part.
    (d) Property transfers that otherwise would be null and void or 
unenforceable by virtue of the provisions of this section shall not be 
deemed to be null and void or unenforceable as to any person with whom 
such property was held or maintained (and as to such person only) in 
cases in which such person is able to establish to the satisfaction of 
the Director of the Office of Foreign Assets Control each of the 
following:
    (1) Such transfer did not represent a willful violation of the 
provisions of this part by the person with whom such property was held 
or maintained;
    (2) The person with whom such property was held or maintained did 
not have reasonable cause to know or suspect, in view of all the facts 
and circumstances known or available to such person, that such transfer 
required a license issued pursuant to this part and was not so 
licensed, or if a license did purport to cover the transfer, that such 
license had been obtained by misrepresentation of a third party or 
withholding of material facts or was otherwise fraudulently obtained; 
and
    (3) The person with whom such property was held or maintained filed 
with the Office of Foreign Assets Control a report setting forth in 
full the circumstances relating to such transfer promptly upon 
discovery that:
    (i) Such transfer was in violation of the provisions of this part 
or any regulation, ruling, instruction, direction, or license issued 
pursuant to this part;
    (ii) Such transfer was not licensed or authorized by the Director 
of the Office of Foreign Assets Control; or
    (iii) If a license did purport to cover the transfer, such license 
had been obtained by misrepresentation of a third party or withholding 
of material facts or was otherwise fraudulently obtained.

    Note to paragraph (d) of Sec. 598.205: The filing of a report in 
accordance with the provisions of paragraph (d)(3) of this section 
shall not be deemed evidence that the terms of paragraphs (d)(1) and 
(2) of this section have been satisfied.

    (e) Unless licensed or authorized pursuant to this part, any 
attachment, judgment, decree, lien, execution, garnishment, or other 
judicial process is null and void with respect to any property in which 
on or since the effective date there existed an interest of a specially 
designated narcotics trafficker.


Sec. 598.206  Holding of funds in interest-bearing accounts; investment 
and reinvestment.

    (a) Except as provided in paragraph (c) or (d) of this section, or 
as otherwise directed by the Office of Foreign Assets Control, any U.S. 
person holding funds, such as currency, bank deposits, or liquidated 
financial obligations, subject to Sec. 598.202 shall hold or place such 
funds in a blocked interest-bearing account located in the United 
States.
    (b)(1) For purposes of this section, the term blocked interest-
bearing account means a blocked account:
    (i) In a federally-insured U.S. bank, thrift institution, or credit 
union, provided the funds are earning interest at rates that are 
commercially reasonable; or
    (ii) With a broker or dealer registered with the Securities and 
Exchange Commission under the Securities Exchange Act of 1934, provided 
the funds are invested in a money market fund or in U.S. Treasury 
bills.
    (2) For purposes of this section, a rate is commercially reasonable 
if it is the rate currently offered to other depositors on deposits or 
instruments of comparable size and maturity.
    (3) Funds held or placed in a blocked account pursuant to this 
paragraph (b) may not be invested in instruments the maturity of which 
exceeds 180 days. If interest is credited to a separate blocked account 
or sub-account, the name of the account party on each account must be 
the same.
    (c) Blocked funds held in instruments the maturity of which exceeds 
180 days at the time the funds become subject to Sec. 598.202 may 
continue to be held until maturity in the original instrument, provided 
any interest, earnings, or other proceeds derived therefrom are paid 
into a blocked interest-bearing account in accordance with paragraph 
(b) or (d) of this section.
    (d) Blocked funds held in accounts or instruments outside the 
United States at the time the funds become subject to Sec. 598.202 may 
continue to be held in the same type of accounts or instruments, 
provided the funds earn interest at rates that are commercially 
reasonable.
    (e) This section does not create an affirmative obligation for the 
holder of blocked tangible property, such as chattels or real estate, 
or of other blocked property, such as debt or equity securities, to 
sell or liquidate such property at the time the property becomes 
subject to Sec. 598.202. However, the Office of Foreign Assets Control 
may issue licenses permitting or directing such sales in appropriate 
cases.
    (f) Funds subject to this section may not be held, invested, or 
reinvested in a manner that provides immediate financial or economic 
benefit or access to specially designated narcotics traffickers, nor 
may their holder cooperate in or facilitate the pledging or other 
attempted use as collateral of blocked funds or other assets.

    Note to Sec. 598.206: Please refer to Sec. 598.505 for 
authorized investment and reinvestment of certain funds held in 
blocked accounts.


[[Page 41338]]



Subpart C--General Definitions


Sec. 598.301  Blocked account; blocked property.

    The terms blocked account and blocked property mean any account or 
property subject to Sec. 598.202 held in the name of a specially 
designated narcotics trafficker, or in which a specially designated 
narcotics trafficker has an interest, and with respect to which 
payments, transfers, exportations, withdrawals, or other dealings may 
not be made or effected except pursuant to an authorization or license 
from the Office of Foreign Assets Control authorizing such action.


Sec. 598.302  Effective date.

    The term effective date refers to the effective date of the 
applicable prohibitions and directives of this part, which is December 
3, 1999, or, in the case of specially designated narcotics traffickers 
designated after that date, the earlier of the date on which actual or 
constructive notice of such designation is received.


Sec. 598.303  Entity.

    The term entity means a partnership, joint venture, association, 
corporation, organization, network, group, or subgroup, or any form of 
business collaboration.


Sec. 598.304  Foreign Narcotics Kingpin Designation Act.

    The term Foreign Narcotics Kingpin Designation Act means the 
Foreign Narcotics Kingpin Designation Act, Pub. L. 106-120, title 8, 
113 Stat. 1606, 1626-1636 (codified at 21 U.S.C. 1901-1908, 8 U.S.C. 
1182(a)(2)(C)).


Sec. 598.305  Foreign person.

    The term foreign person means any citizen or national of a foreign 
state or any entity not organized under the laws of the United States, 
but does not include a foreign state.


Sec. 598.306  General license.

    The term general license means any license or authorization the 
terms of which are set forth in this part.


Sec. 598.307  Interest.

    Except as otherwise provided in this part, the term interest when 
used with respect to property (e.g., an interest in property) means an 
interest of any nature whatsoever, direct or indirect.


Sec. 598.308  License.

    Except as otherwise specified, the term license means any license 
or authorization contained in or issued pursuant to this part.


Sec. 598.309  Narcotic drug; controlled substance; listed chemical.

    The terms narcotic drug, controlled substance, and listed chemical 
have the meanings given those terms in section 102 of the Controlled 
Substances Act (21 U.S.C. 802).


Sec. 598.310  Narcotics trafficking.

    The term narcotics trafficking means any illicit activity to 
cultivate, produce, manufacture, distribute, sell, finance, or 
transport narcotic drugs, controlled substances, or listed chemicals, 
or otherwise endeavor or attempt to do so, or to assist, abet, 
conspire, or collude with others to do so.


Sec. 598.311  Person.

    The term person means an individual or entity.


Sec. 598.312  Property; property interest.

    The terms property and property interest include but are not 
limited to money, checks, drafts, bullion, bank deposits, savings 
accounts, debts, indebtedness, obligations, notes, guarantees, 
debentures, stocks, bonds, coupons, any other financial instruments, 
bankers acceptances, mortgages, pledges, liens or other rights in the 
nature of security, warehouse receipts, bills of lading, trust 
receipts, bills of sale, any other evidences of title, ownership, or 
indebtedness, letters of credit and any documents relating to any 
rights or obligations thereunder, powers of attorney, goods, wares, 
merchandise, chattels, stocks on hand, ships, goods on ships, real 
estate mortgages, deeds of trust, vendors' sales agreements, land 
contracts, leaseholds, ground rents, real estate and any other interest 
therein, options, negotiable instruments, trade acceptances, royalties, 
book accounts, accounts payable, judgments, patents, trademarks or 
copyrights, insurance policies, safe deposit boxes and their contents, 
annuities, pooling agreements, services of any nature whatsoever, 
contracts of any nature whatsoever, and any other property, real, 
personal, or mixed, tangible or intangible, or interest or interests 
therein, whether present, future, or contingent.


Sec. 598.313  Significant foreign narcotics trafficker.

    The term significant foreign narcotics trafficker means any foreign 
person that plays a significant role in international narcotics 
trafficking that the President has determined to be appropriate for 
sanctions and has publicly identified under section 804(b) or section 
804(h)(1) of the Foreign Narcotics Kingpin Designation Act.


Sec. 598.314  Specially designated narcotics trafficker.

    The term specially designated narcotics trafficker means:
    (a) Significant foreign narcotics traffickers; and
    (b) Foreign persons designated by the Secretary of the Treasury, in 
consultation with the Attorney General, the Director of Central 
Intelligence, the Director of the Federal Bureau of Investigation, the 
Administrator of the Drug Enforcement Administration, the Secretary of 
Defense, and the Secretary of State, because they are found to be:
    (1) Materially assisting in, or providing financial or 
technological support for or to, or providing goods or services in 
support of, the international narcotics trafficking activities of a 
specially designated narcotics trafficker;
    (2) Owned, controlled, or directed by, or acting for or on behalf 
of, a specially designated narcotics trafficker; or
    (3) Playing a significant role in international narcotics 
trafficking.

    Note to Sec. 598.314:
    Please refer to the appendices at the end of this chapter V for 
listings of persons determined to fall within this definition who 
have been designated pursuant to this part. Section 501.807 of this 
chapter V 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 designation no 
longer apply.

Sec. 598.315  Specific license.

    The term specific license means any license not set forth in this 
part but issued pursuant to this part.


Sec. 598.316  Transfer.

    The term transfer means any actual or purported act or transaction, 
whether or not evidenced by writing, and whether or not done or 
performed within the United States, the purpose, intent, or effect of 
which is to create, surrender, release, convey, transfer, or alter, 
directly or indirectly, any right, remedy, power, privilege, or 
interest with respect to any property. Without limitation upon the 
foregoing, the term transfer includes the making, execution, or 
delivery of any assignment, power, conveyance, check, declaration, 
deed, deed of trust, power of attorney, power of appointment, bill of 
sale, mortgage, receipt, agreement, contract, certificate, gift, sale, 
affidavit, or statement; the making of any payment; the setting off of 
any obligation or credit; the appointment of any agent, trustee, or 
fiduciary; the creation or transfer of any lien; the issuance, 
docketing, filing, or levy of or under any judgment, decree, 
attachment, injunction, execution, or other judicial or administrative 
process

[[Page 41339]]

or order; the service of any garnishment; the acquisition of any 
interest of any nature whatsoever by reason of a judgment or decree of 
any foreign country; the fulfillment of any condition; the exercise of 
any power of appointment, power of attorney, or other power; or the 
acquisition, disposition, transportation, importation, exportation, or 
withdrawal of any security.


Sec. 598.317  United States.

    The term United States means the United States, its territories and 
possessions, and all areas under the jurisdiction or authority thereof.


Sec. 598.318  United States person; U.S. person.

    The term United States person or U.S. person means any United 
States citizen or national, permanent resident alien, an entity 
organized under the laws of the United States (including its foreign 
branches), or any person within the United States.


Sec. 598.319  U.S. financial institution.

    The term U.S. financial institution means any U.S. entity 
(including a foreign branch) that is engaged in the business of 
accepting deposits, making, granting, transferring, holding, or 
brokering loans or credits, or purchasing or selling foreign exchange, 
securities, commodity futures or options, as principal or agent. This 
terms includes but is not limited to depository institutions, banks, 
savings banks, trust companies, securities brokers and dealers, 
commodity futures and options brokers and dealers, forward contract and 
foreign exchange merchants, securities and commodities exchanges, 
clearing corporations, investment companies, employee benefit plans, 
and U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of 
any of the foregoing. This term includes those branches, offices, and 
agencies of foreign financial institutions which are located in the 
United States, but not such institutions' foreign branches, offices, or 
agencies.

Subpart D--Interpretations


Sec. 598.401  Reference to amended sections.

    Except as otherwise specified, reference to any provision in or 
appendix to this part or chapter or to any regulation, ruling, order, 
instruction, direction, or license issued pursuant to this part refers 
to the same as currently amended.


Sec. 598.402  Effect of amendment.

    Unless otherwise specifically provided, any amendment, 
modification, or revocation of any provision in or appendix to this 
part or chapter or of any order, regulation, ruling, instruction, or 
license issued by or under the direction of the Director of the Office 
of Foreign Assets Control does not affect any act done or omitted, or 
any civil or criminal suit or proceeding commenced or pending prior to 
such amendment, modification, or revocation. All penalties, 
forfeitures, and liabilities under any such order, regulation, ruling, 
instruction, or license continue and may be enforced as if such 
amendment, modification, or revocation had not been made.


Sec. 598.403  Termination and acquisition of an interest in blocked 
property.

    (a) Whenever a transaction licensed pursuant to this part results 
in the transfer of property (including any property interest) away from 
a specially designated narcotics trafficker, the transferred property 
will no longer be considered property in which that person has or has 
had an interest. Provided no other specially designated narcotics 
trafficker has any interest in the transferred property following the 
transfer, the transferred property will no longer be considered 
property blocked pursuant to Sec. 598.202.
    (b) Unless otherwise specifically provided in a license issued 
pursuant to this part, if property (including any property interest) is 
transferred or attempted to be transferred to a specially designated 
narcotics trafficker, such property shall be deemed to be property in 
which that person has an interest, and such property is therefore 
blocked pursuant to Sec. 598.202.


Sec. 598.404  Setoffs prohibited.

    A setoff against blocked property (including a blocked account), 
whether by a U.S. financial institution or other U.S. person, is a 
prohibited transfer under Sec. 598.203 if effected after the effective 
date.


Sec. 598.405  Transactions incidental to a licensed transaction.

    Any transaction ordinarily incident to a licensed transaction and 
necessary to give effect to the licensed transaction is also authorized 
by the license. Except as specifically authorized by the terms of a 
license, prohibited transactions by specially designated narcotics 
traffickers and debits to accounts blocked pursuant to Sec. 598.202 are 
not considered incidental to a licensed transaction and therefore 
remain prohibited.


Sec. 598.406  Provision of services.

    (a) The prohibitions contained in Sec. 598.203 apply to services 
performed by U.S. persons, wherever located:
    (1) On behalf of or for the benefit of a specially designated 
narcotics trafficker; or
    (2) With respect to property interests of a specially designated 
narcotics trafficker.
    (b) Example: U.S. persons may not, except as authorized by or 
pursuant to this part, provide legal, accounting, financial, brokering, 
freight forwarding, transportation, public relations, or other services 
to a specially designated narcotics trafficker. See Sec. 598.507 on 
licensing policy with regard to the provision of certain legal 
services.


Sec. 598.407  Offshore transactions.

    The prohibitions contained in Sec. 598.203 apply to transactions by 
any U.S. person in a location outside the United States with respect to 
property in which the U.S. person knows, or has reason to know, that a 
specially designated narcotics trafficker has or has had an interest 
since the effective date.


Sec. 598.408  Alleged change in ownership or control of an entity 
designated as a specially designated narcotics trafficker.

    (a) A change or alleged change in ownership or control of an entity 
designated as a specially designated narcotics trafficker shall not be 
the basis for removal of that entity from the list of specially 
designated narcotics traffickers unless, upon investigation by the 
Office of Foreign Control and submission of evidence by the entity, it 
is demonstrated to the satisfaction of the Director of the Office of 
Foreign Assets Control that the transfer to a bona fide purchaser at 
arm's length, or other means of changing ownership or control, is 
legitimate and that the entity no longer meets the criteria for 
designation under Sec. 598.314. Evidence submitted must conclusively 
demonstrate that all ties with other specially designated narcotics 
traffickers have been completely severed, and may include, but is not 
limited to, articles of incorporation; identification of new directors, 
officers, shareholders, and sources of capital; and contracts 
evidencing the sale of the entity to its new owners.
    (b) Any continuing substantial financial obligations on the part of 
the new owners to any specially designated narcotics traffickers, 
including long-term payment plans, leases, or rents, will be considered 
as evidence of continuing control of the entity by the specially 
designated narcotics trafficker. Purchase of a designated entity 
without ongoing substantial financial obligations to a specially 
designated narcotics trafficker may nonetheless be a basis for

[[Page 41340]]

subsequent designation of the purchaser, if the transaction is 
determined materially to assist in or provide financial support for the 
international narcotics trafficking activities of specially designated 
narcotics traffickers for purposes of Sec. 598.314(b)(1). For example, 
any acquisition transaction resulting in a direct cash transfer to or 
other enrichment of a specially designated narcotics trafficker could 
lead to designation of the purchaser. Mere change in name of an entity 
will not be considered as constituting a change of the entity's status.


Sec. 598.409  Credit extended and cards issued by U.S. financial 
institutions.

    The prohibition in Sec. 598.203 on dealing in property in which a 
specially designated narcotics trafficker has an interest prohibits 
U.S. financial institutions from performing under any existing credit 
agreements, including, but not limited to, charge cards, debit cards, 
or other credit facilities issued by a U.S. financial institution to a 
specially designated narcotics trafficker.


Sec. 598.410  Payments from blocked accounts to U.S. exporters and for 
other obligations prohibited.

    No debits may be made to a blocked account to pay obligations to 
U.S. persons or other persons, including payment for goods or services 
exported prior to the effective date of the blocking, except as 
authorized pursuant to this part.

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


Sec. 598.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart D of this chapter. Licensing actions taken pursuant to part 501 
of this chapter with respect to the prohibitions contained in this part 
are considered actions taken pursuant to this part.


Sec. 598.502  Effect of license.

    (a) No license contained in this part, or otherwise issued by or 
under the direction of the Director of the Office of Foreign Assets 
Control pursuant to this part, authorizes or validates any transaction 
effected prior to the issuance of the license, unless the prior 
transaction is specifically authorized in such license.
    (b) No regulation, ruling, instruction, or license authorizes any 
transaction prohibited by this part unless the regulation, ruling, 
instruction, or license is issued by the Office of Foreign Assets 
Control and specifically refers to this part. No regulation, ruling, 
instruction, or license referring to this part authorizes any 
transaction prohibited by any provision of this chapter unless the 
regulation, ruling, instruction, or license specifically refers to such 
provision.
    (c) Any regulation, ruling, instruction, or license authorizing any 
transaction otherwise prohibited by this part has the effect of 
removing from the transaction a prohibition or prohibitions contained 
in this part, but only to the extent specifically stated by its terms. 
Unless the regulation, ruling, instruction, or license otherwise 
specifies, such an authorization does not create any right, duty, 
obligation, claim, or interest that would not otherwise exist under 
ordinary principles of law in or with respect to any property.


Sec. 598.503  Exclusion from licenses.

    The Director of the Office of Foreign Assets Control reserves the 
right to exclude any person, property, or transaction from the 
operation of any license or from the privileges conferred by any 
license. The Director of the Office of Foreign Assets Control also 
reserves the right to restrict the applicability of any license to 
particular persons, property, transactions, or classes thereof. Such 
actions are binding upon all persons receiving actual or constructive 
notice of the exclusions or restrictions.


Sec. 598.504  Payments and transfers to blocked accounts in U.S. 
financial institutions.

    Any payment of funds or transfer of credit in which a specially 
designated narcotics trafficker has any interest that comes within the 
possession or control of a U.S. financial institution must be blocked 
in an account on the books of that financial institution. A transfer of 
funds or credit by a U.S. financial institution between blocked 
accounts in its branches or offices is authorized, provided that no 
transfer is made from an account within the United States to an account 
held outside the United States, and further provided that a transfer 
from a blocked account may only be made to another blocked account held 
in the same name.

    Note to Sec. 598.504: Please refer to part 501, subpart C of 
this chapter for mandatory reporting requirements regarding 
financial transfers. See also Sec. 598.206 concerning the obligation 
to hold blocked funds in interest-bearing accounts.

Sec. 598.505  Investment and reinvestment of certain funds.

    Subject to the requirements of Sec. 598.206, U.S. financial 
institutions are authorized to invest and reinvest assets held in 
blocked accounts in the name of a specially designated narcotics 
trafficker, subject to the following conditions:
    (a) The assets representing such investments and reinvestments are 
credited to a blocked account or subaccount that is held in the same 
name at the same U.S. financial institution, or within the possession 
or control of a U.S. person, but in no case may funds be transferred 
outside the United States for this purpose;
    (b) The proceeds of such investments and reinvestments are not 
credited to a blocked account or subaccount under any name or 
designation that differs from the name or designation of the specific 
blocked account or subaccount in which such funds or securities were 
held; and
    (c) No immediate financial or economic benefit accrues (e.g., 
through pledging or other use) to the specially designated narcotics 
trafficker.


Sec. 598.506  Entries in certain accounts for normal service charges 
authorized.

    (a) U.S. financial institutions are authorized to debit any blocked 
account with such U.S. financial institution in payment or 
reimbursement for normal service charges owed to such U.S. financial 
institution by the owner of such blocked account.
    (b) As used in this section, the term normal service charges 
includes but is not limited to charges in payment or reimbursement for 
interest due; cable, telegraph, or telephone charges; postage costs; 
custody fees; small adjustment charges to correct bookkeeping errors; 
minimum balance charges; notary and protest fees; and charges for 
reference books, photocopies, credit reports, transcripts of 
statements, registered mail, insurance, stationery and supplies, and 
other similar items.


Sec. 598.507  Provision of certain legal services authorized.

    (a) The provision to or on behalf of a specially designated 
narcotics trafficker of the legal services set forth in paragraph (b) 
of this section is authorized, provided that all receipt of payment for 
such services must be specifically licensed.
    (b) Specific licenses may be issued on a case-by-case basis 
authorizing receipt from unblocked sources of payment of professional 
fees and reimbursement of incurred expenses for the following legal 
services by U.S. persons to a specially designated narcotics 
trafficker:
    (1) Provision of legal advice and counseling on the requirements of 
and compliance with the laws of any jurisdiction within the United 
States,

[[Page 41341]]

provided that such advice and counseling is not provided to facilitate 
transactions that would violate any prohibition contained in this 
chapter;
    (2) Representation of a specially designated narcotics trafficker 
when named as a defendant in or otherwise made a party to domestic U.S. 
legal, arbitration, or administrative proceedings;
    (3) Initiation and conduct of domestic U.S. legal, arbitration, or 
administrative proceedings in defense of property interests subject to 
U.S. jurisdiction of a specially designated narcotics trafficker;
    (4) Representation of a specially designated narcotics trafficker 
before any federal or state agency with respect to the imposition, 
administration, or enforcement of U.S. sanctions against such person; 
and
    (5) Provision of legal services in any other context in which 
prevailing U.S. law requires access to legal counsel at public expense.
    (c) The provision of any other legal services to a specially 
designated narcotics trafficker, not otherwise authorized in this part, 
requires the issuance of a specific license.
    (d) Entry into a settlement agreement affecting property or 
interests in property of a specially designated narcotics trafficker or 
the enforcement of any lien, judgment, arbitral award, decree, or other 
order through execution, garnishment, or other judicial process 
purporting to transfer or otherwise alter or affect property or 
interests in property of a specially designated narcotics trafficker is 
prohibited unless specifically licensed in accordance with 
Sec. 598.205(e).

Subpart F--Reports


Sec. 598.601  Records and reports.

    For provisions relating to required records and reports, see part 
501, subpart C of this chapter. Recordkeeping and reporting 
requirements imposed by part 501 of this chapter with respect to the 
prohibitions contained in this part are considered requirements arising 
pursuant to this part.

Subpart G--Penalties


Sec. 598.701  Penalties.

    (a) Attention is directed to section 807 of the Foreign Narcotics 
Kingpin Designation Act, which is applicable to violations of the 
provisions of any license, rule, or regulation issued by or pursuant to 
the direction or authorization of the Secretary of the Treasury 
pursuant to this part or otherwise under that Act. Section 807 of 
Foreign Narcotics Kingpin Designation Act provides that:
    (1) Whoever willfully violates the provisions of the Foreign 
Narcotics Kingpin Designation Act, or any license, rule, or regulation 
issued pursuant to that Act, or willfully neglects or refuses to comply 
with any order of the President issued under that Act, shall be 
imprisoned for not more than 10 years, fined in the amount provided in 
title 18, United States Code, or both, or, in the case of an entity, 
fined not more than $10,000,000;
    (2) Any officer, director, or agent of any entity who knowingly 
participates in a violation of the provisions of the Foreign Narcotics 
Kingpin Designation Act, shall be imprisoned for not more than 30 
years, fined not more than $5,000,000, or both;
    (3) A civil penalty not to exceed $1,000,000 per violation may be 
imposed by the Secretary of the Treasury on any person who violates any 
license, order, rule, or regulation issued in compliance with the 
provisions of the Foreign Narcotics Kingpin Designation Act.
    (b) The criminal penalties provided in this part are subject to 
increase pursuant to 18 U.S.C. 3571.
    (c) Attention is directed to 18 U.S.C. 1001, which provides that 
whoever, in any matter within the jurisdiction of any department or 
agency of the United States, knowingly and willfully falsifies, 
conceals, or covers up by any trick, scheme, or device a material fact, 
or makes any materially false, fictitious, or fraudulent statement or 
representation, or makes or uses any false writing or document knowing 
the same to contain any materially false, fictitious, or fraudulent 
statement or entry shall be fined under title 18, United States Code, 
or imprisoned not more than five years, or both.
    (d) Violations of this part may also be subject to relevant 
provisions of other applicable laws.


Sec. 598.702  Prepenalty notice.

    (a) When required. If the Director of the Office of Foreign Assets 
Control has reasonable cause to believe that there has occurred a 
violation of any provision of this part or a violation of the 
provisions of any license, ruling, regulation, order, direction, or 
instruction issued by or pursuant to the direction or authorization of 
the Secretary of the Treasury pursuant to this part or otherwise under 
the Foreign Narcotics Kingpin Designation Act, and the Director 
determines that further proceedings are warranted, the Director shall 
issue to the person concerned a notice of intent to impose a monetary 
penalty. This prepenalty notice shall be issued whether or not another 
agency has taken any action with respect to this matter.
    (b) Contents--(1) Facts of violation. The prepenalty notice shall 
describe the violation, specify the laws and regulations allegedly 
violated, and state the amount of the proposed monetary penalty.
    (2) Right to respond. The prepenalty notice also shall inform the 
respondent of respondent's right to make a written presentation within 
30 days of the date of mailing of the notice as to why a monetary 
penalty should not be imposed or why, if imposed, the monetary penalty 
should be in a lesser amount than proposed.


Sec. 598.703  Response to prepenalty notice; informal settlement.

    (a) Deadline for response. The respondent shall have 30 days from 
the date of mailing of the prepenalty notice to make a written response 
to the Director of the Office of Foreign Assets Control.
    (b) Form and contents of response. The written response need not be 
in any particular form, but must contain information sufficient to 
indicate that it is in response to the prepenalty notice. It should 
contain responses to the allegations in the prepenalty notice and set 
forth the reasons why the respondent believes the penalty should not be 
imposed or why, if imposed, it should be in a lesser amount than 
proposed.
    (c) Informal settlement. In addition or as an alternative to a 
written response to a prepenalty notice issued pursuant to this 
section, the respondent or respondent's representative may contact the 
Office of Foreign Assets Control as advised in the prepenalty notice to 
propose the settlement of allegations contained in the prepenalty 
notice and related matters. In the event of settlement at the 
prepenalty stage, the claim proposed in the prepenalty notice will be 
withdrawn, the respondent will not be required to take a written 
position on allegations contained in the prepenalty notice, and the 
Office of Foreign Assets Control will make no final determination as to 
whether a violation occurred. The amount accepted in settlement of 
allegations in a prepenalty notice may vary from the civil penalty that 
might finally be imposed in the event of a formal determination of 
violation. In the event no settlement is reached, the 30-day period 
specified in paragraph (a) of this section for written response to the 
prepenalty notice remains in effect unless additional time is granted 
by the Office of Foreign Assets Control.

[[Page 41342]]

Sec. 598.704  Penalty imposition or withdrawal.

    (a) No violation. If, after considering any response to a 
prepenalty notice and any relevant facts, the Director of the Office of 
Foreign Assets Control determines that there was no violation by the 
respondent named in the prepenalty notice, the Director promptly shall 
notify the respondent in writing of that determination and that no 
monetary penalty will be imposed.
    (b) Violation. If, after considering any response to a prepenalty 
notice and any relevant facts, the Director of the Office of Foreign 
Assets Control determines that there was a violation by the respondent 
named in the prepenalty notice, the Director promptly shall issue a 
written notice of the imposition of the monetary penalty to the 
respondent. The issuance of a written notice of the imposition of a 
monetary penalty shall constitute final agency action.
    (1) The penalty notice shall inform the respondent that payment of 
the assessed penalty must be made within 30 days of the date of mailing 
of the penalty notice.
    (2) The penalty notice shall inform the respondent of the 
requirement to furnish the respondent's taxpayer identification number 
pursuant to 31 U.S.C. 7701 and that such number will be used for 
purposes of collecting and reporting on any delinquent penalty amount.


Sec. 598.705  Administrative collection; referral to United States 
Department of Justice.

    In the event that the respondent does not pay a penalty imposed 
pursuant to this part or make payment arrangements acceptable to the 
Director of the Office of Foreign Assets Control within 30 days of the 
date of mailing of a penalty notice, the matter may be referred for 
administrative collection measures by the Department of the Treasury or 
to the United States Department of Justice for appropriate action to 
recover the penalty in a civil suit in a Federal district court.


Sec. 598.706  Judicial review of civil penalty.

    A civil penalty imposed pursuant to this subpart G is subject to 
judicial review only to the extent provided in 5 U.S.C. 702.

Subpart H--Procedures


Sec. 598.801  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 
Privacy Act (5 U.S.C. 552a), see part 501, subpart D of this chapter.


Sec. 598.802  Availability of information pursuant to the Freedom of 
Information Act.

    Any record or information obtained or created in the implementation 
of this part is not subject to disclosure under section 552(a)(3) of 
the Freedom of Information Act. Information required to be made 
available to the public under other provisions of the Freedom of 
Information Act (5 U.S.C. 552) will be made available in accordance 
with Sec. 501.805(a) of this chapter.


Sec. 598.803  Delegation by the Secretary of the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to the Foreign Narcotics Kingpin Designation Act may be taken 
by the Director of the Office of Foreign Assets Control or by any other 
person to whom the Secretary of the Treasury has delegated authority so 
to act.

Subpart I--Paperwork Reduction Act


Sec. 598.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information 
collections relating to recordkeeping and reporting requirements, 
licensing procedures (including those pursuant to statements of 
licensing policy), and 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: June 6, 2000.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.

    Approved: June 13, 2000.
Elisabeth A. Bresee,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 00-16844 Filed 6-29-00; 3:39 pm]
BILLING CODE 4810-25-P