[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Rules and Regulations]
[Pages 78973-78975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32757]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 585 and 586


Unblocking of Assets; Federal Republic of Yugoslavia (Serbia & 
Montenegro) and Bosnian Serb-Controlled Areas of the Republic of Bosnia 
and Herzegovina Sanctions Regulations; Federal Republic of Yugoslavia 
(Serbia & Montenegro) Kosovo Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S. 
Department of Treasury is issuing general licenses, to be effective 
February 25, 2003, unblocking certain property and interests in 
property presently blocked pursuant to the Federal Republic of 
Yugoslavia (Serbia & Montenegro) and Bosnian Serb-controlled areas of 
the Republic of Bosnia and Herzegovina Sanctions Regulations set forth 
at 31 CFR part 585 and the Federal Republic of Yugoslavia (Serbia & 
Montenegro) Kosovo Sanctions Regulations set forth at 31 CFR part 586. 
The general licenses effecting the unblocking under both of the above 
sets of regulations will not apply to property or interests in property 
of those persons who are presently subject to sanctions under either 
the Federal Republic of Yugoslavia (Serbia & Montenegro) Milosevic 
Regulations set forth at 31 CFR part 587 or the Western Balkans 
Transactions Regulations set forth at 31 CFR part 588, or who are 
otherwise subject to sanctions under other parts of 31 CFR chapter V. 
In addition, the general license effecting the unblocking under 31 CFR 
part 585 will not apply to property or interests in property of 
diplomatic and/or consular missions of the former Socialist Federal 
Republic of Yugoslavia or to the blocked property or interests in 
property of the National Bank of Yugoslavia subject to part 585. In 
order to allow for claims and encumbrances associated with the property 
and interests in property being unblocked to be addressed, OFAC is also 
issuing general licenses, effective December 27, 2002, authorizing any 
person or government to seek judicial or other legal protection of any 
rights they may have with respect to the property and interests in 
property being unblocked.

DATES: Effective Date: December 27, 2002.
    Applicable Dates: The general licenses set forth in 31 CFR 
Sec. Sec.  585.529(a) and 586.520(a) shall become applicable February 
25, 2003. The general licenses set forth in 31 CFR 585.529(b) and 
586.520(b) shall become applicable December 27, 2002.

FOR FURTHER INFORMATION CONTACT: Chief of Compliance Programs, tel.: 
202/622-2490, Chief of Licensing, tel.: 202/622-2480, Chief of Policy 
Planning and Program Management, tel.: 202/622-2500, or 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[reg] 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

    Pursuant to Presidential Determination No. 96-7 of December 27, 
1995 (61 FR 2887, January 29, 1996), and Executive Order 13192 of 
January 17, 2001 (66 FR 7379, Jan. 23, 2001), most Treasury-
administered sanctions imposed upon the Federal Republic of Yugoslavia 
(Serbia & Montenegro) (the ``FRY(S&M)'') in response to the actions of 
the FRY(S&M) in Bosnia and Herzegovina from 1992 through 1995 and with 
respect to Kosovo from 1998 through 2000 have been suspended or lifted. 
Nevertheless, most property and interests in property blocked under 
either the Bosnia-related sanctions regulations (31 CFR part 585) or 
the Kosovo-related sanctions regulations (31 CFR part 586) have 
remained blocked, primarily to provide for the address of claims and 
encumbrances that may be associated with such property or interests in 
property, including potential claims of the successor states of the 
former Socialist Federal Republic of Yugoslavia.
    As part of the U.S. Government's efforts to assist the FRY(S&M) in 
recovering from the effects of the Milosevic regime, certain steps are 
being taken to unblock much of the remaining property and interests in 
property blocked under either 31 CFR part 585 or 31 CFR part 586. On 
October 3, 2001 (66 FR 50506), OFAC issued an interim final rule 
amending 31 CFR part 586, which included authorization for the 
unblocking of certain Yugoslav debt and authorization for the release 
of certain blocked financial transfers. At present, OFAC is issuing 
general licenses, effective February 25, 2003, authorizing the 
unblocking of all remaining blocked property and interests in property, 
except (i) property or interests in property of diplomatic and/or 
consular missions of the former Socialist Federal

[[Page 78974]]

 Republic of Yugoslavia, (ii) property or interests in property of 
those persons who are presently subject to sanctions under either the 
Federal Republic of Yugoslavia (Serbia & Montenegro) Milosevic 
Regulations set forth at 31 CFR part 587 or the Western Balkans 
Transactions Regulations set forth at 31 CFR part 588, or who are 
otherwise subject to sanctions under other parts of 31 CFR chapter V, 
and (iii) the property or interests in property of the central bank of 
the former Socialist Federal Republic of Yugoslavia, i.e., the National 
Bank of Yugoslavia, that have been blocked pursuant to 31 CFR part 585. 
(Property and interests in property of the National Bank of Yugoslavia 
blocked pursuant to 31 CFR part 586 will be unblocked pursuant to the 
general license being issued at Sec.  586.520.)
    In order to allow for claims and encumbrances associated with the 
property and interests in property being unblocked to be addressed in a 
manner consistent with Presidential Determination No. 96-7 and 
Executive Order 13192, OFAC is also issuing general licenses, effective 
December 27, 2002, authorizing any person or government to seek 
judicial or other legal process with respect to property or interests 
in property being unblocked. These general licenses are intended to 
help persons and governments, including the successor states to the 
former Socialist Federal Republic of Yugoslavia, to protect any rights 
they may have with respect to such property or interests in property. 
These general licenses do not constitute a determination that any 
particular property or interest in property subject to the unblocking 
authorization would not be subject to defenses against any judicial or 
legal process, including claims of immunity.
    Because the amendment of 31 CFR parts 585 and 586 involves 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. 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 31 CFR parts 585 and 586 
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 approved by 
the Office of Management and Budget 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

31 CFR Part 585

    Administrative practice and procedure, Banks and banking, Blocking 
of assets, Bosnia and Herzegovina, Federal Republic of Yugoslavia 
(Serbia & Montenegro), Montenegro, Reporting and recordkeeping 
requirements, Serbia.

31 CFR Part 586

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Federal Republic of Yugoslavia (Serbia & Montenegro), Kosovo, 
Montenegro, Reporting and recordkeeping requirements, Serbia.
    For the reasons set forth in the preamble, 31 CFR parts 585 and 586 
are amended as follows:

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

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

    Authority: 3 U.S.C. 301; 22 U.S.C. 287(c); 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 23299, 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. 599; E.O. 12934, 59 FR 54117, 3 
CFR, 1994 Comp., p. 930.

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

    2. Section 585.529 is added to subpart E to read as follows:


Sec.  585.529  Unblocking of previously blocked property.

    (a)(1) Except for such property and interests in property described 
in paragraph (a)(2) of this section, as of February 25, 2003, all 
transactions that otherwise would be prohibited by this part involving 
property or interests in property blocked pursuant to Executive Order 
12808 of May 30, 1992, Executive Order 12810 of June 5, 1992, Executive 
Order 12846 of April 25, 1993, or Executive Order 12934 of October 25, 
1994, that has remained blocked pursuant to Presidential Determination 
No. 96-7 of December 27, 1995, are authorized.
    (2) The authorization in paragraph (a)(1) does not apply to:
    (i) Property or interests in property of diplomatic and/or consular 
missions of the former Socialist Federal Republic of Yugoslavia,
    (ii) Property or interests in property blocked pursuant to this 
part of those persons presently subject to sanctions under either the 
Federal Republic of Yugoslavia (Serbia & Montenegro) Milosevic 
Regulations set forth at 31 CFR part 587 or the Western Balkans 
Transactions Regulations set forth at 31 CFR part 588, or who are 
otherwise subject to sanctions under this chapter, or
    (iii) Property or interests in property of the National Bank of 
Yugoslavia blocked pursuant to this part.
    (b) As of December 27, 2002, any person or government is authorized 
to seek an attachment, judgment, decree, lien, or other judicial or 
legal process against or with respect to any property or interests in 
property subject to the unblocking authorization set forth in paragraph 
(a) of this section. This section does not authorize any execution 
against, final settlement with respect to, garnishment of, or other 
action effecting the transfer of any property or interests in property 
subject to the unblocking authorization set forth in paragraph (a) of 
this section prior to February 25, 2003.

    Note to paragraph (b) of Sec.  585.529: Any person or government 
seeking judicial or other legal process under the authority of this 
paragraph must comply with the reporting requirements set forth 
under 31 CFR 501.605 pertaining to litigation, arbitration and 
dispute resolution proceedings.

PART 586--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA & MONTENEGRO) 
KOSOVO SANCTIONS REGULATIONS

    3. The authority citation for part 586 continues to read as 
follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; E.O. 13088, 63 FR 32109, 3 CFR, 98 Comp., p. 191; E.O. 
13121, 64 FR 24021, 3 CFR, 99 Comp., p. 176; E.O. 13192, 66 FR 7379, 
January 23, 2001.

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

    4. Section 586.520 is added to subpart E to read as follows:

[[Page 78975]]

Sec.  586.520  Unblocking of previously blocked property.

    (a)(1) Except for such property and interests in property set forth 
in paragraph (a)(2) of this section, as of February 25, 2003, all 
transactions that otherwise would be prohibited by this part involving 
property or interests in property blocked pursuant to Executive Order 
13088 of June 9, 1998, or Executive Order 13121 of April 30, 1999, that 
has remained blocked pursuant to Executive Order 13192 of January 17, 
2001, are authorized.
    (2) The authorization in paragraph (a)(1) does not apply to 
property or interests in property blocked pursuant to this part of 
those persons presently subject to sanctions under either the Federal 
Republic of Yugoslavia (Serbia & Montenegro) Milosevic Regulations set 
forth at 31 CFR part 587 or the Western Balkans Transactions 
Regulations set forth at 31 CFR part 588, or who are otherwise subject 
to sanctions under this chapter.
    (b)(1) As of December 27, 2002, any person or government is 
authorized to seek an attachment, judgment, decree, lien, or other 
judicial or legal process against or with respect to any property or 
interests in property subject to the unblocking authorization set forth 
in paragraph (a) of this section. This section does not authorize any 
execution against, final settlement with respect to, garnishment of, or 
other action effecting the transfer of any property or interests in 
property subject to the unblocking authorization set forth in paragraph 
(a) of this section prior to February 25, 2003.

    Note to paragraph (b) of Sec.  586.520: Any person or government 
seeking judicial or other legal process under the authority of this 
paragraph must comply with the reporting requirements set forth 
under 31 CFR 501.605 pertaining to litigation, arbitration and 
dispute resolution proceedings.


    Dated: December 12, 2002.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.

    Approved: December 17, 2002.
Kenneth E. Lawson,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 02-32757 Filed 12-23-02; 4:44 pm]
BILLING CODE 4810-25-P