[Federal Register Volume 70, Number 59 (Tuesday, March 29, 2005)]
[Rules and Regulations]
[Pages 15761-15762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6092]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 535, 550, and 575


Administrative Collection of Civil Penalties in the Iranian 
Assets Control Regulations, the Libyan Sanctions Regulations, and the 
Iraqi 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 the Treasury is revising the Iranian Assets Control 
Regulations, 31 CFR part 535, the Libyan Sanctions Regulations, 31 CFR 
part 550, and the Iraqi Sanctions Regulations, 31 CFR part 575, to 
reaffirm that administrative collection of unpaid civil penalties 
imposed by OFAC is authorized in addition to judicial means of 
collection.

DATES: This rule is effective March 29, 2005.

FOR FURTHER INFORMATION CONTACT: Chief of Policy Planning and Program 
Management, tel. (202) 622-2500, Chief of Civil Penalties, tel.: (202) 
622-6140, or Chief Counsel, tel.: (202) 622-2410, Office of Foreign 
Assets Control, Department of the Treasury, Washington, DC 20220 (not 
toll free numbers).

SUPPLEMENTARY INFORMATION:

Background

    By law (31 U.S.C. 3711(a)), heads of Federal agencies are required 
to attempt to collect debts owed to those agencies. Among other things, 
Federal agencies may seek collection using one or more administrative 
means, such as contracting with private collection agencies. 31 U.S.C. 
3718. The Department of the Treasury aggressively attempts to collect 
debts owed it by using multiple collection methods, including 
administrative collection. 31 CFR 5.2(e), 5.4, 5.9(c), and 5.15. An 
unpaid civil penalty is a debt under Treasury regulations. 31 CFR 5.1.
    OFAC is revising pertinent sections of the Iranian Assets Control 
Regulations, 31 CFR part 535, the Libyan Sanctions Regulations, 31 CFR 
part 550, and the Iraqi Sanctions Regulations, 31 CFR part 575, to 
reaffirm that administrative collection of civil penalties is 
authorized in addition to or in lieu of judicial means of collection.

Procedural Matters

    Because the Iranian Assets Control Regulations, the Libyan 
Sanctions Regulations, and the Iraqi Sanctions Regulations involve a 
foreign affairs function of the United States, and because this rule 
imposes no new substantive duties or obligations on the public but 
rather clarifies OFAC's options regarding existing legal authorities 
and requirements related to the administrative collection of debts owed 
to the Government, the provisions in the Administrative Procedure Act 
(5 U.S.C. 553) requiring notice and public procedure and a delayed 
effective date are inapplicable. Because no notice of proposed 
rulemaking is required, the provisions of the Regulatory Flexibility 
Act (5 U.S.C. Chapter 6) do not apply.

Electronic and Facsimile Availability

    This file is available for download without charge in ASCII and 
Adobe Acrobat readable (*.PDF) formats at GPO Access. GPO Access 
supports HTTP, FTP, and Telnet at fedbbs.access.gpo.gov. It may also be 
accessed by modem dialup at (202) 512-1387 followed by typing ``/GO/
FAC.'' Paper copies of this document can be obtained by calling the 
Government Printing Office at (202) 512-1530. 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 via FTP at ofacftp.treas.gov. 
Facsimiles of information are available 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.

[[Page 15762]]

List of Subjects

31 CFR Part 535

    Administrative practice and procedure, Iran, Penalties, Sanctions.

31 CFR Part 550

    Administrative practice and procedure, Libya, Penalties, Sanctions.

31 CFR Part 575

    Administrative practice and procedure, Iraq, Penalties, Sanctions.


0
For the reasons set forth in the preamble, 31 CFR chapter V is amended 
as follows:

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

0
1. The authority citation for part 535 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. 12281, 46 FR 7923, 3 
CFR, 1981 Comp., p. 110; E.O. 12282, 46 FR 7925, 3 CFR, 1981 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.

Subpart G--Penalties

0
2. Section 535.705 is revised to read as follows:


Sec.  535.705  Administrative collection; referral to United States 
Department of Justice.

    In the event that the person named does not pay the 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 the 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.

PART 550--LIBYAN SANCTIONS REGULATIONS

0
3. The authority citation for part 550 is revised to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 287c, 
2349aa-8 and 2349aa-9; 31 U.S.C. 321(b); 49 U.S.C. 40106(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; E.O. 12543, 51 
FR 875; 3 CFR, 1986 Comp., p. 181; E.O. 12544, 51 FR 1235, 3 CFR, 
1986 Comp., p. 183; E.O. 12801, 57 FR 14319 3 CFR, 1992 Comp., p. 
294; E.O. 13357, 69 FR 56665, September 20, 2004.

Subpart G--Penalties

0
4. Section 550.706 is revised to read as follows:


Sec.  550.706  Administrative collection; referral to United States 
Department of Justice.

    In the event that the person named does not pay the 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 the 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.

PART 575--IRAQI SANCTIONS REGULATIONS

0
5. The authority citation for part 575 continues to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287(c); 18 U.S.C. 2332d; 22 
U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
31 U.S.C. 321(b); 49 U.S.C. 40106; 50 U.S.C. 1601-1651, 1701-1706; 
Pub. L. 101-513, 104 Stat. 2047-2055 (50 U.S.C. 17012 note); E.O. 
12722, 55 FR 31803, 3 CFR, 1990 Comp., p. 294; E.O. 12724, 55 FR 
33089, 3 CFR, 1990 Comp., p. 297; E.O. 12817, 57 FR 484333, 3 CFR, 
1992 Comp., p. 317; E.O. 13350, 69 FR 46055, July 29, 2004.

Subpart G--Penalties

0
6. Section 575.705 is revised to read as follows:


Sec.  575.705  Administrative collection; referral to United States 
Department of Justice.

    In the event that the person named does not pay the 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 the 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.

    Dated: March 18, 2005.
Robert W. Werner,
Director, Office of Foreign Assets Control.
    Approved: March 21, 2005.
Juan C. Zarate,
Assistant Secretary of the Treasury for Terrorist Financing, Department 
of the Treasury.
[FR Doc. 05-6092 Filed 3-24-05; 2:43 pm]
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