[Federal Register Volume 71, Number 66 (Thursday, April 6, 2006)]
[Rules and Regulations]
[Pages 17345-17346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3286]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 500


Foreign Assets Control Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendment.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury is amending the Foreign Assets Control Regulations, 31 CFR 
part 500, effective May 8, 2006, to add a new provision limiting the 
authorization of post-June 19, 2000 transactions involving property in 
which the Democratic People's Republic of Korea (``North Korea'') or a 
national thereof has an interest. The new provision prohibits United 
States persons from owning, leasing, operating or insuring any vessel 
flagged by North Korea.

DATES: Effective date: May 8, 2006.

FOR FURTHER INFORMATION CONTACT: Assistant Director of Compliance 
Outreach/Implementation, tel.: (202) 622-2490, Assistant Director of 
Licensing, tel.: (202) 622-2480, Assistant Director of Policy, tel.: 
(202) 622-4855, or Chief Counsel, tel.: (202) 622-2410, Office of 
Foreign Assets Control, Department of the Treasury, Washington, DC 
20220.

SUPPLEMENTARY INFORMATION:

[[Page 17346]]

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (http://www.treas.gov/ofac) or via 
facsimile through a 24-hour fax-on-demand service, tel.: (202) 622-
0077.

Background

    The Foreign Assets Control Regulations (the ``FACR''), 31 CFR part 
500, which are authorized under the Trading with the Enemy Act, 50 
U.S.C. App. 1-44, imposed economic sanctions against the Democratic 
People's Republic of Korea (``North Korea'') beginning in 1950. Since 
that time, those sanctions have been modified on a number of occasions, 
most recently to ease economic sanctions against North Korea in order 
to improve overall relations and to encourage North Korea to continue 
to refrain from testing long-range missiles. Consistent with U.S. 
foreign policy interests, the Office of Foreign Assets Control 
(``OFAC''), on June 19, 2000, amended the FACR, 31 CFR part 500, to add 
Sec.  500.586, authorizing transactions concerning certain North Korean 
property.
    Subject to the limitations in paragraph (b) of Sec.  500.586, 
paragraph (a) authorized new, i.e., post-June 19, 2000, transactions in 
which North Korea has a property interest. Paragraph (b) set forth four 
limitations on the new authorization. Today OFAC is amending the FACR 
by adding a new provision, effective May 8, 2006, to further limit the 
authorization provided by Sec.  500.586. This new provision, Sec.  
500.586(b)(5), prohibits United States persons from owning, leasing, 
operating or insuring any vessel flagged by North Korea. Because the 
term United States person is a new term not previously used or defined 
in the FACR, a definition of the term is provided for purposes of 
paragraph (b)(5). The effective date of this amendment has been delayed 
to provide time for United States persons to re-flag any vessels 
currently flagged by North Korea.
    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. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-602) does not apply.

Paperwork Reduction Act

    As authorized in the APA, the Regulations are being issued without 
prior notice and public comment. The collection of information related 
to 31 part 500 is contained in 31 CFR part 501 (the ``Reporting, 
Procedures and Penalties 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 in 31 CFR Part 500

    Administrative practice and procedure, Banks, Banking, Brokers, 
Foreign Trade, Investments, Loans, Securities, North Korea.

0
For the reasons set forth in the preamble, 31 CFR part 500 is amended 
as follows:

PART 500--FOREIGN ASSETS CONTROL REGULATIONS

0
1. The authority citation for part 500 continues to read as follows:

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. App. 1-
44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 
7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p. 748.

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

0
2. A new paragraph (b)(5) is added to Sec.  500.586 to read as follows:


Sec.  500.586  Authorization of new transactions concerning certain 
North Korean property.

* * * * *
    (b) * * *
    (5) Effective May 8, 2006, United States persons are prohibited 
from owning, leasing, operating or insuring any vessel flagged by North 
Korea. For purposes of this paragraph, the term United States person 
means any United States citizen, permanent resident alien, entity 
organized under the laws of the United States or any jurisdiction 
within the United States (including foreign branches), or any person in 
the United States.
* * * * *

    Dated: March 23, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
    Approved: March 24, 2006.
Stuart A. Levey,
Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. 06-3286 Filed 4-5-06; 8:45 am]
BILLING CODE 4810-25-P