[Federal Register Volume 74, Number 94 (Monday, May 18, 2009)]
[Rules and Regulations]
[Pages 23111-23112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-11294]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 596


Terrorism List Governments 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 amending the Terrorism List Governments 
Sanctions Regulations so that the schedule to which a prohibition 
section refers lists those countries that are currently designated as 
supporting international terrorism, instead of the countries that were 
designated as of the effective date of these regulations. This 
amendment also removes Iraq, Libya, and North Korea from the schedule, 
because these countries are no longer designated as state sponsors of 
terrorism.

DATES: Effective Date: May 18, 2009.

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 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

    Section 321 of the Antiterrorism and Effective Death Penalty Act of 
1996, 18 U.S.C. 2332d (the ``Act''), makes it a criminal offense for 
United States persons, except as provided in regulations issued by the 
Secretary of the Treasury in consultation with the Secretary of State, 
to engage in financial transactions with the governments of countries 
designated under section 6(j) of the Export Administration Act of 1979, 
50 U.S.C. App. 2405(j) (the ``EAA''), as supporting international 
terrorism. To implement section 321 of the Act, OFAC promulgated the 
Terrorism List Governments Sanctions Regulations, 31 CFR part 596 (the

[[Page 23112]]

``Regulations''), effective August 22, 1996. 61 FR 43462 (Aug. 23, 
1996).
    Section 596.201 of the Regulations provides that, except as 
authorized by regulations, orders, directives, licenses, or otherwise, 
no United States person, knowing or having reasonable cause to know 
that a country is designated under section 6(j) of the EAA as a country 
supporting international terrorism, shall engage in a financial 
transaction with the government of such country. A schedule following 
section 596.201 listed those countries that were designated under 
section 6(j) as of the effective date of the Regulations (i.e., as of 
August 22, 1996). Since that date, the Secretary of State has issued 
Public Notices rescinding the designations of Iraq [69 FR 61702 (Oct. 
20, 2004)], Libya [71 FR 39696 (July 13, 2006)], and North Korea [73 FR 
63540 (Oct. 24, 2008)]. Accordingly, OFAC is amending section 596.201 
of the Regulations so that the schedule that follows in new paragraph 
(b) of this section lists countries that are designated under section 
6(j) as supporting international terrorism as of May 18, 2009. The 
schedule itself is being updated by the removal of Iraq, Libya, and 
North Korea, which are no longer so designated.

Public Participation

    Because the amendment of the Regulations 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 the Regulations are 
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 596

    Administrative practice and procedure, Banking and finance, Cuba, 
Fines and penalties, Iran, Reporting and recordkeeping requirements, 
Syria, Sudan, Terrorism, Transfer of assets.


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For the reasons set forth in the preamble, the Office of Foreign Assets 
Control amends 31 CFR part 596 as follows:

PART 596--TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS

0
1. The authority citation for part 596 continues to read as follows:

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b).

Subpart B--Prohibitions

0
2. Revise Sec.  596.201 to read as follows:


Sec.  596.201  Prohibited financial transactions.

    (a) Except as authorized by regulations, orders, directives, 
rulings, instructions, licenses, or otherwise, no United States person, 
on or after the effective date, knowing or having reasonable cause to 
know that a country is designated under section 6(j) of the Export 
Administration Act, 50 U.S.C. App. 2405, as a country supporting 
international terrorism, shall engage in a financial transaction with 
the government of that country.
    (b) Countries designated under section 6(j) of the Export 
Administration Act as of May 18, 2009 are listed in the following 
schedule.

Schedule

    Cuba.
    Iran.
    Sudan.
    Syria.

    Dated: May 7, 2009.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
[FR Doc. E9-11294 Filed 5-15-09; 8:45 am]
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