[Federal Register Volume 74, Number 140 (Thursday, July 23, 2009)]
[Rules and Regulations]
[Pages 36397-36398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17558]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 560


Iranian Transactions 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 Iranian Transactions 
Regulations to revise the definition of the term Iranian accounts and 
make conforming changes to other sections of the regulations.

DATES: Effective Date: July 23, 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 the Office of 
Foreign Assets Control 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 Iranian Transactions Regulations, 31 CFR part 560 (the 
``ITR''), implement a series of Executive Orders that began with 
Executive Order 12613 of October 29, 1987, issued pursuant to 
authorities including the International Security and Development 
Cooperation Act of 1985 (22 U.S.C. 2349aa-9). In that original order, 
after finding, inter alia, that the Government of Iran was actively 
supporting terrorism as an instrument of state policy, the President 
prohibited the importation of Iranian-origin goods and services. 
Subsequently, in Executive Order 12957, issued on March 15, 1995, under 
the authority of, inter alia, the International Emergency Economic 
Powers Act (50 U.S.C. 1701-1706) (``IEEPA''), the President declared a 
national emergency with respect to the actions and policies of the 
Government of Iran, including its support for international terrorism, 
its efforts to undermine the Middle East peace process, and its efforts 
to acquire weapons of mass destruction and the means to deliver them. 
To deal with that threat, Executive Order 12957 imposed prohibitions on 
certain transactions with respect to the development of Iranian 
petroleum resources. On May 6, 1995, to further respond to this threat, 
the President issued Executive Order 12959, which imposed comprehensive 
trade and financial sanctions on Iran. Finally, on August 19, 1997, the 
President issued Executive Order 13059 consolidating and clarifying the 
previous orders.
    Existing Sec.  560.320 of the ITR defines the term Iranian accounts 
to mean accounts of persons located in Iran or of the Government of 
Iran maintained on the books of either a United States depository 
institution or a United States registered broker or dealer in 
securities. OFAC is revising Sec.  560.320 to clarify the definition by 
substituting the new phrase ``persons who are ordinarily resident in 
Iran, except when such persons are not located in Iran'' for the phrase 
``persons located in Iran.'' This change will improve OFAC's overall 
administration of the ITR and facilitate compliance by U.S. financial 
institutions. As revised, Sec.  560.320 defines Iranian accounts to 
mean accounts of persons who are ordinarily resident in Iran, except 
when such persons are not located in Iran, or of the Government of Iran 
maintained on the books of either a United States depository 
institution or a United States registered broker or dealer in 
securities.

[[Page 36398]]

    In addition to revising the definition in Sec.  560.320, OFAC is 
making certain conforming changes to Sec.  560.517 and Sec. Sec.  
560.532-560.535. These sections use language from the unamended 
definition of the term Iranian accounts in describing certain 
transactions that are authorized or prohibited with respect to such 
accounts. Therefore, OFAC is revising these sections by deleting that 
language and instead relying on a reference to the definition in Sec.  
560.320. Lastly, OFAC also is making a technical correction to the 
heading of Sec.  560.532.

Public Participation

    Because the amendments of the ITR involve a foreign affairs 
function, Executive Order 12866 and the provisions of 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 ITR 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 560

    Administrative practice and procedure, Banks, Banking, Brokers, 
Foreign trade, Investments, Loans, Securities, Iran.

0
For the reasons set forth in the preamble, the Office of Foreign Assets 
Control amends 31 CFR part 560 as follows:

PART 560--IRANIAN TRANSACTIONS REGULATIONS

0
1. The authority citation for part 560 continues 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; Pub. L. 110-96, 121 Stat. 1011; 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 CFR, 1995 Comp., p. 356; 
E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217.

Subpart C--General Definitions

0
2. Revise Sec.  560.320 to read as follows:


Sec.  560.320  Iranian accounts.

    The term Iranian accounts means accounts of persons who are 
ordinarily resident in Iran, except when such persons are not located 
in Iran, or of the Government of Iran maintained on the books of either 
a United States depository institution or a United States registered 
broker or dealer in securities.

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

0
3. In Sec.  560.517, revise the introductory text of paragraphs (a) and 
(b) to read as follows:


Sec.  560.517  Exportation of services: Iranian accounts at United 
States depository institutions or United States registered brokers or 
dealers in securities.

    (a) United States depository institutions are prohibited from 
performing services with respect to Iranian accounts, as defined in 
Sec.  560.320, except that United States depository institutions are 
authorized to provide and be compensated for services and incidental 
transactions with respect to:
* * * * *
    (b) United States registered brokers or dealers in securities are 
prohibited from performing services with respect to Iranian accounts, 
as defined in Sec.  560.320, except that United States registered 
brokers or dealers in securities are authorized to provide and be 
compensated for services and incidental transactions with respect to:
* * * * *

0
4. In Sec.  560.532, revise the heading and paragraph (c) to read as 
follows:


Sec.  560.532  Payment for and financing of exports and reexports of 
agricultural commodities, medicine, and medical devices.

* * * * *
    (c) No debits or credits to Iranian accounts on the books of U.S. 
depository institutions. Nothing in this section authorizes payment 
terms or trade financing involving debits or credits to Iranian 
accounts, as defined in Sec.  560.320.
* * * * *

0
5. In Sec.  560.533, revise paragraph (c) to read as follows:


Sec.  560.533  Brokering sales of agricultural commodities, medicine 
and medical devices.

* * * * *
    (c) No debits or credits to Iranian accounts on the books of U.S. 
depository institutions. Payment for any brokerage fee earned pursuant 
to this section may not involve debits or credits to Iranian accounts, 
as defined in Sec.  560.320.
* * * * *

0
6. In Sec.  560.534, revise paragraphs (d) and (e)(2) to read as 
follows:


Sec.  560.534  Importation into the United States of, and dealings in, 
certain foodstuffs and carpets authorized.

* * * * *
    (d) Iranian accounts. Nothing in this section authorizes debits or 
credits to Iranian accounts, as defined in Sec.  560.320.
    (e) * * *
    (2) A United States person may process a documentary collection 
relating to the importation into the United States of Iranian-origin 
pistachios, but payment under the documentary collection may not 
involve the crediting of an Iranian account, as defined in Sec.  
560.320.

0
7. In Sec.  560.535, revise paragraph (d) to read as follows:


Sec.  560.535  Letters of credit and brokering services relating to 
certain foodstuffs and carpets.

* * * * *
    (d) Iranian accounts. Nothing in this section authorizes debits or 
credits to Iranian accounts, as defined in Sec.  560.320.
* * * * *

    Dated: July 17, 2009.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E9-17558 Filed 7-22-09; 8:45 am]
BILLING CODE 4811-45-P