[Federal Register Volume 71, Number 98 (Monday, May 22, 2006)]
[Rules and Regulations]
[Pages 29251-29253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4705]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 535, 536, 537, 538, 539, 540, 541, 542, 560, 588, 594, 
and 595


Iranian Assets Control Regulations, Narcotics Trafficking 
Sanctions Regulations, Burmese Sanctions Regulations, Sudanese 
Sanctions Regulations, Weapons of Mass Destruction Trade Control 
Regulations, Highly Enriched Uranium (HEU) Agreement Assets Control 
Regulations, Zimbabwe Sanctions Regulations, Syrian Sanctions 
Regulations, Iranian Transactions Regulations, Western Balkans 
Stabilization Regulations, Global Terrorism Sanctions Regulations, 
Terrorism Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Treasury Department's Office of Foreign Assets Control 
(OFAC) is revising its regulations to reflect amendments to the 
International Emergency Economic Powers Act (IEEPA) made by the 
Combating Terrorism Financing Act of 2005 (the ``Act'').

DATES: Effective May 22, 2006.

FOR FURTHER INFORMATION CONTACT: Assistant Director, Compliance, 
Outreach & Implementation, tel.: 202/622-2490, Assistant Director, 
Policy, tel.: 202/622-4855, Office of Foreign Assets Control, or Chief 
Counsel (Foreign Assets Control), tel.: 202/622-2410, Office of the 
General Counsel, Department of the Treasury (not toll free numbers).

SUPPLEMENTARY INFORMATION:

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

    On March 9, 2006, the President signed the Act into law as Public 
Law 109-177. Section 402 of the Act amended section 206 of IEEPA (50 
U.S.C. 1705) by raising the maximum civil penalty for a violation, or 
attempted violation, of any license, order, or regulation issued under 
IEEPA to $50,000. The Act also increased the maximum term of 
imprisonment for a willful violation of any such license, order, or 
regulation to 20 years.

[[Page 29252]]

    Accordingly, OFAC is amending the current IEEPA-based sanctions 
programs regulations to reflect the revised penalties prescribed by the 
Act.

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

    Because the regulations at issue involve a foreign affairs 
function, the provisions of Executive Order 12866 and the 
Administrative Procedure Act (5 U.S.C. 553) requiring notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date are inapplicable. In addition, OFAC finds that, because 
the rule merely amends the penalties provisions of certain sanctions 
regulations to conform with the statutory changes provided in the 
Combating Terrorism Financing Act of 2005, good cause exists under 5 
U.S.C. 553(b)(B) to waive the notice and public participation 
procedures, as well as under 5 U.S.C. 553(d)(3) to waive the delay in 
effective date. Because no notice of proposed rulemaking is required 
for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does 
not apply.
    The Paperwork Reduction Act does not apply because this 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.

List of Subjects

31 CFR Part 535

    Administrative practice and procedure, Banks, Banking, Currency, 
Foreign claims, Foreign investments in United States, Iran, Penalties, 
Reporting and recordkeeping requirements, Securities.

31 CFR Part 536

    Administrative practice and procedure, Banks, Banking, Drug traffic 
control, Penalties, Reporting and recordkeeping requirements.

31 CFR Part 537

    Administrative practice and procedure, Banks, Banking, Burma, 
Currency, Foreign investments in United States, Foreign trade, 
Penalties, Reporting and recordkeeping requirements, Securities.

31 CFR Part 538

    Administrative practice and procedure, Banks, Banking, Currency, 
Foreign investments in United States, Foreign trade, Penalties, 
Reporting and recordkeeping requirements, Securities, Sudan.

31 CFR Part 539

    Administrative practice and procedure, Arms and munitions, Imports, 
Penalties, Reporting and recordkeeping requirements.

31 CFR Part 540

    Administrative practice and procedure, Nuclear materials, 
Penalties, Reporting and recordkeeping requirements, Russian 
Federation, Uranium.

31 CFR Part 541

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Penalties, Reporting and recordkeeping requirements, 
Securities, Services, Zimbabwe.

31 CFR Part 542

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Credit, Penalties, Reporting and recordkeeping requirements, 
Securities, Services, Syria.

31 CFR Part 560

    Administrative practice and procedure, Exports, Humanitarian aid, 
Imports, Iran, Penalties, Reporting and recordkeeping requirements.

31 CFR Part 588

    Administrative practice and procedure, Banks, Banking, Penalties, 
Reporting and recordkeeping requirements, Securities, Western Balkans.

31 CFR Part 594

    Administrative practice and procedure, Banks, Banking, Penalties, 
Reporting and recordkeeping requirements, Terrorism.

31 CFR Part 595

    Administrative practice and procedure, Banks, Banking, Currency, 
Foreign investments in United States, Penalties, Reporting and 
recordkeeping requirements, Securities, Terrorism.

0
For the reasons set forth in the preamble, 31 CFR chapter V is amended 
by amending the penalty provisions in 31 CFR parts 535, 536, 537, 538, 
539, 540, 541, 542, 560, 588, 594, and 595.

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

0
1. The authority citation for part 535 is revised 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; Pub. L. 109-177, 120 
Stat. 192.

Subpart G--Penalties


Sec.  535.701  [Amended]

0
2. Amend Sec.  535.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``ten years'' and adding in its place ``twenty years''.

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

0
1. The authority citation for part 536 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1641, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 12978, 60 FR 54579; 3 CFR, 1995 Comp., p. 415; E.O. 13224, 66 
FR 49079; 3 CFR, 2001 Comp., p. 786; E.O. 13286, 68 FR 10619, March 
5, 2003; Pub. L. 109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  536.701  [Amended]

0
2. Amend Sec.  536.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``ten years'' and adding in its place ``twenty years''.

PART 537--BURMESE SANCTIONS REGULATIONS

0
1. The authority citation for part 537 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C 1601-1651, 
1701-1706; Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 108-
61, 117 Stat. 864; E.O. 13047, 62 FR 28301; 3 CFR 1997 Comp., p. 
202; E.O. 13310, 68 FR 44853; 3 CFR 2004 Comp., p. 241; Pub. L. 109-
177, 120 Stat. 192.

Subpart G--Penalties


Sec.  537.701  [Amended]

0
2. Amend Sec.  537.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 538--SUDANESE SANCTIONS REGULATIONS

0
1. The authority citation for part 538 is revised to read as follows:


[[Page 29253]]


    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2339B, 
2332d; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 106-387, 114 Stat. 
1549; E.O. 13067, 62 FR 59989; 3 CFR, 1997 Comp., p. 230; Pub. L. 
109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  538.701  [Amended]

0
2. Amend Sec.  538.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS

0
1. The authority citation for part 539 is revised to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 12938, 59 FR 59099; 3 
CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803; 3 CFR, 1998 Comp., 
p. 200; Pub. L. 109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  539.701  [Amended]

0
2. Amend Sec.  539.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 540--HIGHLY ENRICHED URANIUM (HEU) AGREEMENT ASSETS CONTROL 
REGULATIONS

0
1. The authority citation for part 540 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 13159, 65 FR 39279; 3 CFR Comp., p. 277; Pub. L. 109-177, 120 
Stat. 192.

Subpart G--Penalties


Sec.  540.701  [Amended]

0
2. Amend Sec.  540.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 541--ZIMBABWE SANCTIONS REGULATIONS

0
1. The authority citation for part 541 is revised 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. 13288, 68 FR 11457; 3 CFR, 2003 Comp., p. 186; Pub. 
L. 109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  541.701  [Amended]

0
2. Amend Sec.  541.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 542--SYRIAN SANCTIONS REGULATIONS

0
1. The authority citation for part 542 is revised 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. 13338, 69 FR 26751, May 13, 2004; Pub. L. 109-177, 
120 Stat. 192.

Subpart G--Penalties


Sec.  542.701  [Amended]

0
2. Amend Sec.  542.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

0
1. The authority citation for part 560 is revised to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 31 U.S.C. 321(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. 12613, 52 FR 41940; 3 CFR, 1987 Comp., p. 256; E.O. 
12957, 60 FR 14615; 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 
24757, 3 CRF, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531; 3 CFR, 
1997 Comp., p. 217; Pub. L. 109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  560.701  [Amended]

0
2. Amend Sec.  560.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``ten years'' and adding in its place ``twenty years''.

PART 588--WESTERN BALKANS STABILIZATION REGULATIONS

0
1. The authority citation for part 588 is revised 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. 13219, 66 FR 34777; 3 CFR, 2002 Comp., p. 778; E.O. 
13304, 68 FR 32315, May 29, 2003; Pub. L. 109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  588.701  [Amended]

0
2. Amend Sec.  588.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
1. The authority citation for part 594 is revised to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); E.O. 13224, 66 FR 49079, September 25, 2001; E.O. 
13268, 67 FR 44751, July 3, 2002; 3 CFR, 2002 Comp., p. 240; E.O. 
13284, 64 FR 4075, January 28, 2003; Pub. L. 109-177, 120 Stat. 192.

Subpart G--Penalties


Sec.  594.701  [Amended]

0
2. Amend Sec.  594.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``10 years'' and adding in its place ``twenty years''.

PART 595--TERRORISM SANCTIONS REGULATIONS

0
1. The authority citation for part 595 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 12947, 60 FR 5079; 3 CFR, 1995 Comp., p. 319; Pub. L. 109-177, 
120 Stat. 192.

Subpart G--Penalties


Sec.  595.701  [Amended]

0
2. Amend Sec.  595.701 in paragraph (a)(1) by removing ``$11,000'' and 
adding in its place ``$50,000'', and in paragraph (a)(2) by removing 
``ten years'' and adding in its place ``twenty years''.

    Dated: April 20, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 06-4705 Filed 5-19-06; 8:45 am]
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