[Federal Register Volume 67, Number 118 (Wednesday, June 19, 2002)]
[Proposed Rules]
[Pages 41658-41659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15377]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 501


Rules Governing Availability of Information

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Proposed rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S. 
Department of the Treasury invites public comments on a proposed rule 
concerning the disclosure of certain civil penalties information. On a 
periodic basis, not less frequently than quarterly, OFAC intends to 
make public certain information about civil penalties imposed and 
informal settlements.

DATES: Public comments must be received by OFAC on or before July 19, 
2002.

ADDRESSES: Comments may be submitted to the Chief of Records, ATTN: 
Request for Comments, Office of Foreign Assets Control, Department of 
the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. 
Alternatively, comments may be submitted via facsimile to the Chief of 
Records at 202/622-1657 or via OFAC's Web site http://www.treas.gov/offices/enforcement/ofac/comment.html>.

FOR FURTHER INFORMATION CONTACT: Chief of Records, tel.: 202/622-2500, 
or Chief Counsel, tel. 202/622-2410.

SUPPLEMENTARY INFORMATION:

Background

    OFAC is committed to making its enforcement activities more 
transparent to the public. In an effort to achieve this goal, while 
balancing foreign policy considerations and the requirements of the 
statutes, Executive Orders, and regulations it administers and 
enforces, OFAC offers this notice of a proposed rule governing the 
public availability of certain civil penalties information. OFAC 
expects that making certain additional information public will promote 
greater awareness of its enforcement activities and encourage 
compliance with the economic sanctions programs OFAC administers and 
enforces under 31 CFR chapter V.
    OFAC has already made public certain information pertaining to 
informal settlements of civil penalties matters in response to a 
request under the Freedom of Information Act (``FOIA''), 5 U.S.C. 552. 
Within a given range of dates, the FOIA requester sought, inter alia, 
the identity of each entity with which a civil penalties matter was 
settled, the nature of the alleged violation, and the amount of the 
settlement. OFAC is still in the process of completing its response to 
this particular FOIA request, but an interim release of documents 
generated substantial public interest.
    Prospectively, OFAC intends to make public the following civil 
penalties information on a periodic basis, not less frequently than 
quarterly. In proceedings against an entity that result in either the 
imposition of a civil monetary penalty or an informal settlement, OFAC 
plans to release (1) the name of the entity involved, (2) the sanctions 
program involved, (3) a brief description of the violation or alleged 
violation, and (4) the amount of the penalty imposed or the amount of 
the agreed settlement. At this time, OFAC does not plan to release the 
names of individuals involved in civil penalties matters, but OFAC may 
decide to do so in the future; we would welcome public comments on the 
potential disclosure of individual names in response to this notice. 
For the time being, penalties and informal settlements involving 
individuals will be included in the periodic release on an aggregate 
basis. The information concerning civil penalties and informal 
settlements will be made available to the public through OFAC's Web 
site http://www.treas.gov/offices/enforcement/ofac/index.html>.
    In addition to the names of individuals, there are certain types of 
information that OFAC does not propose to make public under this rule. 
These include information relating to the Foreign Narcotics Kingpin 
Sanctions Regulations, trade secrets and other sensitive commercial or 
financial information, and information on proceedings that have not yet 
been completed.
    Civil Penalties Proceedings Under the Kingpin Act. Section 
805(e)(3) of the Foreign Narcotics Kingpin Designation Act (``FNKDA''), 
21 U.S.C. 1904(e)(3), provides that a key disclosure provision of FOIA, 
5 U.S.C. 552(a)(3), shall not apply to any record or information 
obtained or generated in the implementation of FNKDA. OFAC has 
implemented FNKDA through the Foreign Narcotics Kingpin Sanctions 
Regulations, 31 CFR part 598, which explain that information obtained 
or created in the implementation of those regulations shall not be 
disclosed under section 552(a)(3) of FOIA. See 31 CFR Sec. 598.802. In 
recognition of the important policies underlying this provision of 
FNKDA, OFAC does not plan to make public, under this proposed rule, 
information from civil penalties proceedings conducted under the 
Foreign Narcotics Kingpin Sanctions Regulations.
    Trade Secrets and Commercial or Financial Information. OFAC does 
not intend to make public any ``trade secrets and commercial or 
financial information obtained from a person and privileged or 
confidential,'' within the meaning of section 552(b)(4) of FOIA.
    Pending Proceedings. As a matter of policy, OFAC does not publicly 
comment on pending enforcement and civil penalties proceedings. OFAC 
plans to make public the information described in this proposed rule 
only

[[Page 41659]]

after the conclusion of any such proceedings.

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 Acrobat7 readable (*.PDF) formats. For 
Internet access, the address for use with the World Wide Web, Telnet, 
or FTP protocol is fedbbs.access.gpo.gov>.
    This document and additional information concerning the Office of 
Foreign Assets Control are available from OFAC's Web site http://www.treas.gov/offices/enforcement/ofac/index.html> or via facsimile 
through OFAC's 24-hour fax-on-demand service, tel: 202/622-0077. 
Comments on this proposed rule may be submitted electronically via 
OFAC's Web site http://www.treas.gov/offices/enforcement/ofac/comment.html>.

Regulatory Flexibility Act, Paperwork Reduction Act, and Executive 
Order 12866

    Pursuant to the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., 
it is hereby certified that this proposed rule would not have a 
significant economic impact on a substantial number of small entities. 
The proposed rule imposes no regulatory burdens on the public and 
simply announces that OFAC will publicly release certain information 
about civil penalties imposed and informal settlements. Accordingly, no 
regulatory flexibility analysis is required.
    The Paperwork Reduction Act does not apply because the proposed 
rule does not impose information collection requirements that would 
require the approval of the Office of Management and Budget under 44 
U.S.C. 3501 et seq. A regulatory assessment is not required because 
this proposed rule is not a ``significant regulatory action'' as 
defined in Executive Order 12866.

Request for Comment

    OFAC invites public comments concerning this proposed rule. 
Comments must be received within thirty (30) days of the publication 
date of this notice. The address for submitting comments appears near 
the beginning of this notice. All relevant comments received will be 
made available to the public on OFAC's Web site http://www.treas.gov/offices/enforcement/ofac/index.html>.

List of Subjects in 31 CFR Part 501

    Administrative practice and procedure, Penalties, Reporting and 
recordkeeping requirements.
    For the reasons set forth in the preamble, OFAC proposes to amend 
31 CFR Part 501 to read as follows:

PART 501--REPORTING AND PROCEDURES REGULATIONS

Subpart D--Procedures

    Amend Sec. 501.805 by adding paragraph (d) to read as follows:


Sec. 501.805  Rules governing availability of information.

* * * * *
    (d) Certain Civil Penalties Information. (1) After the conclusion 
of a civil penalties proceeding that results in either the imposition 
of a civil monetary penalty or an informal settlement, OFAC shall make 
available to the public certain information on a periodic basis, not 
less frequently than quarterly, as follows:
    (i) In each such proceeding involving an entity, OFAC shall make 
available to the public
    (A) The name of the entity involved,
    (B) The sanctions program involved,
    (C) A brief description of the violation or alleged violation, and
    (D) The amount of the penalty imposed or the amount of the agreed 
settlement.
    (ii) In such proceedings involving individuals, OFAC shall release 
on an aggregate basis
    (A) The number of penalties imposed and informal settlements 
reached,
    (B) The sanctions programs involved,
    (C) A brief description of the violations or alleged violations, 
and
    (D) The amounts of the penalties imposed and the amounts of the 
agreed settlements.
    (iii) On a case-by-case basis, OFAC may release additional 
information concerning a particular civil penalties proceeding.
    (2) The information made available pursuant to paragraph (d)(1) of 
this section shall not include the following:
    (i) The name of any violator or alleged violator who is an 
individual.
    (ii) Records or information obtained or created in the 
implementation of part 598 of this chapter.

    Dated: June 12, 2002.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: June 12, 2002.
Kenneth Lawson,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 02-15377 Filed 6-14-02; 10:19 am]
BILLING CODE 4810-25-P