[Federal Register Volume 72, Number 210 (Wednesday, October 31, 2007)]
[Rules and Regulations]
[Pages 61517-61518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21357]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 594, 595, and 597


Global Terrorism Sanctions Regulations; Terrorism Sanctions 
Regulations; Foreign Terrorist Organizations Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury (``OFAC'') is revising the Global Terrorism Sanctions 
Regulations, the Terrorism Sanctions Regulations, and the Foreign 
Terrorist Organizations Sanctions Regulations to add a new general 
license authorizing all transactions with the Palestinian Authority, as 
defined in the general license.

DATES: Effective Date: October 31, 2007.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance, 
Outreach & Implementation, tel.: 202/622-2490, Assistant Director for 
Licensing, tel.: 202/622-2480, Assistant Director for 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, Washington, DC 20220 (not toll 
free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning the Office of 
Foreign Assets Control (``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

    OFAC administers three sanctions programs with respect to 
terrorists and terrorist organizations. The Terrorism Sanctions 
Regulations, 31 CFR part 595 (``TSR''), implement Executive Order 12947 
of January 23, 1995, in which the President declared a national 
emergency with respect to ``grave acts of violence committed by foreign 
terrorists that disrupt the Middle East peace process * * *'' The 
Global Terrorism Sanctions Regulations, 31 CFR part 594 (``GTSR''), 
implement Executive Order 13224 of September 23, 2001, in which the 
President declared an emergency more generally with respect to ``grave 
acts of terrorism and threats of terrorism committed by foreign 
terrorists * * *'' The Foreign Terrorist Organizations Sanctions 
Regulations, 31 CFR part 597 (``FTOSR''), implement provisions of the 
Antiterrorism and Effective Death Penalty Act of 1996.
    HAMAS is a target of each of these sanctions programs, resulting in 
the blocking of its property and interests in property that are in the 
United States or within the possession or control of a U.S. person. In 
the case of the FTOSR, U.S. financial institutions are required to 
retain possession or control of any funds of HAMAS and report the 
existence of such funds to Treasury. These restrictions effectively 
prohibit U.S. persons from dealing in property or interests in property 
of HAMAS. Following the 2006 parliamentary elections in the West Bank 
and Gaza, which resulted in HAMAS members forming the majority party 
within the Palestinian Legislative Council and holding positions of 
authority within the government, OFAC determined that HAMAS had a 
property interest in the transactions of the Palestinian Authority. 
That determination remains in place. Accordingly, pursuant to the TSR, 
the GTSR, and the FTOSR, U.S. persons are prohibited from engaging in 
transactions with the Palestinian Authority unless authorized. On April 
12, 2006, OFAC issued six general licenses authorizing U.S. persons to 
engage in certain transactions in which the Palestinian Authority may 
have an interest.
    Based on foreign policy considerations resulting from recent events 
in the West Bank and Gaza, including the appointment of Salam Fayyad as 
the new Prime Minister of the Palestinian Authority and of other 
ministers not affiliated with HAMAS, OFAC is revising the TSR, GTSR, 
and FTOSR to add a new general license as TSR Sec.  595.514, GTSR Sec.  
594.516, and FTOSR Sec.  597.512. Paragraph (a) of new Sec. Sec.  
595.514, 594.516, and 597.512 authorizes U.S. persons to engage in all 
transactions with the Palestinian Authority. Paragraph (b) of these 
sections defines the term Palestinian Authority, for purposes of the 
authorization in paragraph (a), as the Palestinian Authority government 
of Prime Minister Salam Fayyad and President Mahmoud Abbas, including 
all branches, ministries, offices, and agencies (independent or 
otherwise) thereof. Transactions with HAMAS, or in any property in 
which HAMAS has an interest, not covered by the general license remain 
prohibited.

Public Participation

    Because the amendment of 31 CFR parts 594, 595, and 597 involves 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. 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 594, 595, 
and 597 are contained in 31 CFR part 501 (the ``Reporting, Procedures 
and Penalties Regulations''). Pursuant to the Paperwork Reduction Act 
of 1995 (44

[[Page 61518]]

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 594

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

31 CFR Part 595

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

31 CFR Part 597

    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, the Office of Foreign Assets 
Control amends 31 CFR parts 594, 595, and 597 as follows:

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
1. Revise the authority citation for part 594 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); Pub. L. 110-96, 121 Stat. 1011; E.O. 13224, 66 FR 
49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 
2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 
161.

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

0
2. Add a new Sec.  594.516 to read as follows:


Sec.  594.516  Transactions with the Palestinian Authority authorized.

    (a) As of June 20, 2007, U.S. persons are authorized to engage in 
all transactions otherwise prohibited under this part with the 
Palestinian Authority.
    (b) For purposes of this section only, the term Palestinian 
Authority means the Palestinian Authority government of Prime Minister 
Salam Fayyad and President Mahmoud Abbas, including all branches, 
ministries, offices, and agencies (independent or otherwise) thereof.

PART 595--TERRORISM SANCTIONS REGULATIONS

0
3. Revise the authority citation for part 595 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); 
Pub. L. 110-96, 121 Stat. 1011; E.O. 12947, 60 FR 5079, 3 CFR, 1995 
Comp., p. 319.

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

0
4. Add a new Sec.  595.514 to read as follows:


Sec.  595.514  Transactions with the Palestinian Authority authorized.

    (a) As of June 20, 2007, U.S. persons are authorized to engage in 
all transactions otherwise prohibited under this part with the 
Palestinian Authority.
    (b) For purposes of this section only, the term Palestinian 
Authority means the Palestinian Authority government of Prime Minister 
Salam Fayyad and President Mahmoud Abbas, including all branches, 
ministries, offices, and agencies (independent or otherwise) thereof.

PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS

0
5. The authority citation for part 597 continues to read as follows:

    Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 
U.S.C. 1189, 18 U.S.C. 2339B).

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

0
6. Add a new Sec.  597.512 to read as follows:


Sec.  597.512  Transactions with the Palestinian Authority authorized.

    (a) As of June 20, 2007, U.S. persons are authorized to engage in 
all transactions otherwise prohibited under this part with the 
Palestinian Authority.
    (b) For purposes of this section only, the term Palestinian 
Authority means the Palestinian Authority government of Prime Minister 
Salam Fayyad and President Mahmoud Abbas, including all branches, 
ministries, offices, and agencies (independent or otherwise) thereof.

    Dated: October 23, 2007.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E7-21357 Filed 10-30-07; 8:45 am]
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