[Federal Register Volume 66, Number 143 (Wednesday, July 25, 2001)]
[Rules and Regulations]
[Pages 38553-38554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18373]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 535


Amendments to the Iranian Assets Control Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Interim rule with request for comments; amendments.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury is amending the Iranian Assets Control Regulations, 31 CFR 
part 535 (the ``IACR''), to conform certain provisions related to 
custodians of property in which Iran has an interest to rulings of the 
Iran-U.S. Claims Tribunal.

DATES: Effective date: July 25, 2001.
    Comments: Written comments must be received no later than September 
24, 2001.

ADDRESSES: Comments should be sent to David W. Mills, Chief, Policy 
Planning and Program Management Division, rm. 2176 Main Treasury Annex, 
1500 Pennsylvania Ave. N.W., Washington, DC 20220 or via OFAC's website 
(http://www.treas.gov/ofac).

FOR FURTHER INFORMATION CONTACT: Dennis P. Wood, Chief of Compliance 
Programs, tel.: 202/622-2490, Steven I. Pinter, Acting Chief of 
Licensing, tel.: 202/622-2480, or Barbara C. Hammerle, Acting Chief 
Counsel, tel.: 202/622-2410, Office of Foreign Assets Control, 
Department of the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic 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

    The Office of Foreign Assets Control of the U.S. Department of the 
Treasury is amending the Iranian Assets Control Regulations, 31 CFR 
part 535 (the ``IACR''), to conform certain provisions related to 
custodians of property in which Iran has an interest to rulings of the 
Iran-U.S. Claims Tribunal (the ``Tribunal''). In its May 1992 partial 
award in Case A/15, Awd. No. 529-A15-FT, 28 Iran-U.S. Cl. Tr. Rep. 112 
(May 6, 1992), the Tribunal found that certain provisions of the IACR 
were not in strict compliance with commitments made by the U.S. in the 
Algiers Accords. See, Awd. 529, at para. 51, p. 131; See also, Id., at 
para. 53, p. 131.
    These amendments are intended to state clearly that obligations or 
liens on property do not disqualify this property from IACR 
requirements dictating that this property be returned if that property 
is otherwise subject to the requirements of the IACR.
    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and 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. However, because of the importance of 
the issues raised by these regulations, this rule is issued in interim 
form and comments will be considered in the development of final 
regulations. Accordingly, the Department encourages interested persons 
who wish to comment to do so at the earliest possible time to permit 
the fullest consideration of their views.
    The period for submission of comments will close September 24, 
2001. The Department will consider all comments received before the 
close of the comment period in developing final regulations. Comments 
received after the end of the comment period will be considered if 
possible, but their consideration cannot be assured. The Department 
will not accept public comments accompanied by a request that a part or 
all of the material be treated confidentially because of its business 
proprietary nature or for any other reason. The Department will return 
such comments and materials to the person submitting the comments and 
materials and will not consider them in the development of final 
regulations. In the interest of accuracy and completeness, the 
Department requires comments in written form.
    All public comments on these regulations will be a matter of public 
record. Copies of the public record concerning these regulations will 
be made available, not sooner than October 23, 2001 and may be obtained 
from OFAC's website (http://www.treas.gov/ofac). If that service is 
unavailable, written requests for copies may be sent to: Office of 
Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Ave. N.W., Washington, DC 20220, Attn: Merete Evans.
    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 31 CFR part 501 (the ``Reporting and Procedures 
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), those collections of information have been 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 535

    Administrative practice and procedure, Banks, Banking, Currency, 
Foreign claims, Foreign investments in the United States, Iran, 
Penalties, Reporting and recordkeeping requirements, and Securities.

    For reasons set forth in the preamble, 31 CFR part 535 is amended 
as follows:

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

    1. The authority section continues 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. 12282, 46 FR 7925, 3 
CFR, 1981

[[Page 38554]]

Comp., p. 113; E.O. 12283, 46 FR 7927; 3 CFR, 1981 Comp., p. 114; 
and E.O. 12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139.


    2. Amend Sec. 535.215 to revise paragraph (a) to read as follows:


Sec. 535.215  Direction involving other properties in which Iran or an 
Iranian entity has an interest held by any person subject to the 
jurisdiction of the United States.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
all persons subject to the jurisdiction of the United States in 
possession or control of properties, as defined in Sec. 535.333 of this 
part, not including funds and securities owned by Iran or its agencies, 
instrumentalities or controlled entities, are licensed, authorized, 
directed and compelled to transfer such properties held on January 18, 
1981 as directed after that day by the Government of Iran, acting 
through its authorized agent. Such directions shall include 
arrangements for payment of the costs of transporting the properties, 
unless the possessors of the properties were required to pay such costs 
by contract or applicable law on January 19, 1981. Except where 
specifically stated, this license, authorization and direction does not 
relieve persons subject to the jurisdiction of the United States from 
existing legal requirements other than those based upon the 
International Emergency Economic Powers Act.
* * * * *
    3. Amend Sec. 535.333 to read as follows:


Sec. 535.333  Properties.

    (a) The term properties as used in Sec. 535.215 means all 
uncontested and non-contingent liabilities and property interests of 
the Government of Iran, its agencies, instrumentalities, or controlled 
entities, including debts. It does not include bank deposits or funds 
and securities. It also does not include obligations under standby 
letters of credit or similar instruments in the nature of performance 
bonds, including accounts established pursuant to Sec. 535.568.
    (b) Properties do not cease to fall within the definition in 
paragraph (a), above, merely due to the existence of unpaid 
obligations, charges or fees relating to such properties, or 
undischarged liens against such properties.
    (c) Liabilities and property interests of the Government of Iran, 
its agencies, instrumentalities, or controlled entities may be 
considered contested only if the holder thereof reasonably believes 
that Iran does not have title or has only partial title to the asset. 
After October 23, 2001, such a belief may be considered reasonable only 
if it is based upon a bona fide opinion, in writing, of an attorney 
licensed to practice within the United States stating that Iran does 
not have title or has only partial title to the asset. For purposes of 
this paragraph, the term holder shall include any person who possesses 
the property, or who, although not in physical possession of the 
property, has, by contract or otherwise, control over a third party who 
does in fact have physical possession of the property. A person is not 
a holder by virtue of being the beneficiary of an attachment, 
injunction or similar order.
    (d) Liabilities and property interests shall not be deemed to be 
contested solely because they are subject to an attachment, injunction, 
or other similar order.

    Dated: June 8, 2001.
Loren L. Dohm,
Acting Director, Office of Foreign Assets Control.
    Approved: June 25, 2001.
James P. Sloan,
Acting Under Secretary (Enforcement), Department of the Treasury.
[FR Doc. 01-18373 Filed 7-24-01; 8:45 am]
BILLING CODE 4810-25-P