[Federal Register Volume 70, Number 59 (Tuesday, March 29, 2005)]
[Proposed Rules]
[Pages 15783-15784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6023]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 70, No. 59 / Tuesday, March 29, 2005 / 
Proposed Rules  

[[Page 15783]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 950

RIN 3206-AK71


Solicitation of Federal Civilian and Uniformed Service Personnel 
for Contributions to Private Voluntary Organizations--Sanctions 
Compliance Certification

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed 
regulation for the Combined Federal Campaign (CFC). This regulation 
requires that each federation and unaffiliated organization applying to 
participate in the CFC must, as a condition of participation, certify 
that it is in compliance with all statutes, Executive orders, and 
regulations restricting or prohibiting U.S. persons from engaging in 
transactions and dealings with countries, entities, and individuals 
subject to economic sanctions administered by the U.S. Department of 
the Treasury's Office of Foreign Assets Control (OFAC).

DATES: We will consider comments received within 60 days from the date 
of publication in the Federal Register.

ADDRESSES: You may submit comments, identified by RIN number, by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include ``RIN 3206-AK71'' in the 
subject line of the message.
     Fax: (202) 606-0902.
     Mail: Mara T. Patermaster, Director for, U.S. Office of 
Personnel Management, Office of CFC Operations, Room 5450, 1900 E 
Street, NW., Washington, DC 20415.
     Hand Delivery/Courier: Mara T. Patermaster, Director for, 
U.S. Office of Personnel Management, Office of CFC Operations, Room 
5450, 1900 E Street, NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Mark W. Lambert, Senior Compliance 
Officer for the Office of CFC Operations, by telephone on (202) 606-
2564, by FAX on (202) 606-0902, or by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: OFAC is the office principally responsible 
for administering and enforcing U.S. economic sanctions programs. These 
programs further U.S. foreign policy and national security goals and 
are primarily directed against foreign states and nationals, including 
sponsors of global terrorism and foreign narcotics traffickers. OFAC 
acts, pursuant to delegated authority, under Presidential wartime and 
peacetime national emergency powers. The programs administered by OFAC 
restrict or prohibit U.S. persons from engaging in transactions and 
dealings with targeted countries, entities, and individuals. OFAC 
publishes a list of Specially Designated Nationals and Blocked Persons 
(SDN List) that are subject to economic sanctions. The SDN List and 
additional information relating to the countries subject to sanctions 
and the programs OFAC administers are available at http://www.treas.gov/offices/enforcement/ofac/sanctions/. A link to this Web 
site can be accessed through the CFC Web site (http://www.opm.gov/cfc).
    OPM is issuing a proposed regulation governing the solicitation of 
Federal civilian and uniformed services personnel at the workplace for 
contributions to private non-profit organizations through the CFC under 
the authority of Executive Order 12353 (March 23, 1982). OPM has 
plenary authority under 5 CFR part 950 to administer the CFC in 
compliance with legal standards.
    A pattern of abuse of U.S. and foreign charities has become evident 
in recent years. Between October 2001 and December 2004, the United 
States has: (i) Imposed sanctions against five U.S.-based charities and 
thirty-five non-U.S. charities for terrorist financing activity under 
the authority of Executive Order 13224 (Sept. 23, 2001) and the 
International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq.; 
(ii) convicted and sentenced the leader of a U.S.-based charity for 
racketeering and fraud owing to terrorist-related support; (iii) 
indicted another U.S.-based charity and its leadership under pending 
terrorist financing charges, and (iv) investigated numerous other 
charities operating in the U.S. and suspected of terrorist financing 
activity. These cases demonstrate the vulnerability of the charitable 
sector to abuse by terrorists and others and also underscore the 
importance of due diligence within the charitable sector.
    Accordingly, in order to further the purposes of the economic 
sanctions imposed by the President, to ensure that CFC participants are 
exercising appropriate diligence, and to help safeguard the integrity 
of the CFC and the interests of Federal employees who contribute to the 
Campaign, the proposed regulation requires that each federation and 
unaffiliated organization applying to participate in the CFC must, as a 
condition of participation, certify that it is in compliance with all 
statutes, Executive orders, and regulations restricting or prohibiting 
U.S. persons from engaging in transactions and dealings with countries, 
entities, and individuals subject to economic sanctions administered by 
OFAC. The certification proposed for comment for the 2006 and 
subsequent Campaigns reads as follows:

    I certify that the organization named in this application is in 
compliance with all statutes, Executive orders, and regulations 
restricting or prohibiting U.S. persons from engaging in 
transactions and dealings with countries, entities, or individuals 
subject to economic sanctions administered by the U.S. Department of 
the Treasury's Office of Foreign Assets Control. The organization 
named in this application is aware that a list of countries subject 
to such sanctions, a list of Specially Designated Nationals and 
Blocked Persons subject to such sanctions, and overviews and 
guidelines for each such sanction program can be found at http://www.treas.gov/offices/enforcement/ofac/sanctions/. If the 
organization named in this application becomes noncompliant at any 
time subsequent to completing this certification, it will notify the 
OPM Office of CFC Operations immediately.

    In an effort to develop a certification that both serves the public 
interest and meets the needs of the stakeholder community, including 
CFC charitable organization applicants and Federal donors, comment is 
now being solicited for consideration prior to the 2006 CFC and 
subsequent Campaigns.
    Comment is invited on what issues, if any, are presented by the 
approach

[[Page 15784]]

proposed by OPM for the 2006 and subsequent Campaigns in light of 
certifications currently required by other agencies for different 
programs. In particular, the U.S. Agency for International Development 
requires grantees to make a certification (available under keyword 
``Anti-Terrorism Certification'' at http://www.usaid.gov/keywords.html). Comments from recipients of funding from USAID who also 
participate in the Combined Federal Campaign are especially urged to 
comment on the appropriateness of different certification requirements.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities. Organizations 
applying to the CFC have an existing, independent obligation to comply 
with U.S. sanctions laws. Requiring them to execute a certification 
with respect to such compliance is not burdensome. OPM has taken steps 
to minimize the economic impact on small entities by including in the 
text of the certification the OFAC Web site address at which extensive 
information on U.S. sanctions is available via the Internet free of 
charge, including the text-searchable OFAC SDN List.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 950

    Administrative practice and procedures, Charitable contributions, 
Government employees, Military personnel, Nonprofit organizations and 
Reporting and recordkeeping requirements.

Office of Personnel Management.
Dan G. Blair,
Acting Director.

    Accordingly, OPM is proposing to amend 5 CFR part 950 as follows:

PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE 
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS

    1. The authority citation for part 950 continues to read as 
follows:

    Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25, 
1982). 3 CFR, 1982 Comp., p. 139. E.O. 12404 (February 10, 1983), 48 
FR 6685 (February 15, 1983), Pub. L. 100-202, and Pub. L. 102-393 (5 
U.S.C. 1101 Note).


Sec.  950.104  Local Federal Coordinating Committee Responsibilities.

    2. In subpart A Sec.  950.104 add paragraph (b)(18) to read as 
follows:
* * * * *
    (b) * * *
    (18) Determining whether each local organization that applies to 
participate in the local campaign has completed the sanctions 
compliance certification required pursuant to Sec.  950.605. The LFCC 
must deny participation to any organization that has not completed the 
sanctions compliance certification.
    3. In subpart F, add new Sec.  950.605 to read as follows:


Sec.  950.605  Sanctions Compliance Certification.

    Each federation and unaffiliated organization applying for 
participation in the CFC must, as a condition of participation, 
complete a certification that it is in compliance with all statutes, 
Executive orders, and regulations restricting or prohibiting U.S. 
persons from engaging in transactions and dealings with persons subject 
to economic sanctions administered by the U.S. Department of the 
Treasury's Office of Foreign Assets Control (OFAC). An organization 
that is not in compliance at any time subsequent to completing this 
certification must notify the OPM Office of CFC Operations immediately. 
OPM will take such steps as it deems appropriate under the 
circumstances, including, but not limited to, notifying OFAC and/or 
other enforcement authorities of such noncompliance, suspending 
disbursement of CFC funds not yet disbursed, retracting (to the extent 
practicable) CFC funds already disbursed, and suspending or expelling 
the organization from the CFC.

[FR Doc. 05-6023 Filed 3-28-05; 8:45 am]
BILLING CODE 6325-46-P