[Federal Register Volume 76, Number 125 (Wednesday, June 29, 2011)]
[Rules and Regulations]
[Pages 38000-38002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15638]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 585, 586, and 587


Removal of Certain Sanctions Regulations Relating to the Former 
Federal Republic of Yugoslavia

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (``OFAC'') is removing from the Code of Federal Regulations the 
Federal Republic of Yugoslavia (Serbia and Montenegro) and Bosnian 
Serb-Controlled Areas of the Republic of Bosnia and Herzegovina 
Sanctions Regulations, the Federal Republic of Yugoslavia (Serbia and 
Montenegro) Kosovo Sanctions Regulations, and the Federal Republic of 
Yugoslavia (Serbia and Montenegro) Milosevic Sanctions Regulations. 
Pursuant to Executive Order 13304 of May 28, 2003, the national 
emergencies with respect to which these regulations had been issued 
were terminated, and all related Executive orders that had been 
implemented by these regulations were revoked. In addition, since the 
date of Executive Order 13304, the successor states to the former 
Socialist Federal Republic of Yugoslavia have reached an agreement 
concerning the division of assets of the former Socialist Federal 
Republic of Yugoslavia, and the statutes of limitations for other 
claims have run.

DATES: Effective Date: June 29, 2011.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions 
Compliance & Evaluation, 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 (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.treasury.gov/ofac). Certain 
general information pertaining to OFAC's sanctions programs also is 
available via facsimile through a 24-hour fax-on demand service, tel.: 
202-622-0077.

Background

    On May 28, 2003, the President issued Executive Order 13304 (68 FR 
32315, May 29, 2003), invoking the authority of, inter alia, the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(``IEEPA'') and the National Emergencies Act (50 U.S.C. 1601 et seq.) 
(the ``NEA''). In this order, the President determined that the 
situations that gave rise to the national emergencies declared in 
Executive Order 12808 of May 30, 1992 (57 FR 23299, June 2, 1992), and 
Executive Order 13088 of June 9, 1998 (63 FR 32109, June 12, 1998), 
with respect to the former Socialist Federal Republic of Yugoslavia 
have been significantly altered by the peaceful transition to

[[Page 38001]]

democracy and other positive developments in Serbia and Montenegro 
(formerly the Federal Republic of Yugoslavia (Serbia and Montenegro) 
(``FRY(S&M)'')). Executive Order 13304 terminated the national 
emergencies with respect to the former Socialist Federal Republic of 
Yugoslavia declared in those orders and revoked those and all related 
orders, including Executive Order 12810 of June 5, 1992 (57 FR 24347, 
June 9, 1992), Executive Order 12831 of January 15, 1993 (58 FR 5253, 
January 21, 1993), Executive Order 12846 of April 25, 1993 (58 FR 
25771, April 27, 1993), Executive Order 12934 of October 25, 1994 (59 
FR 54117, October 27, 1994), Executive Order 13121 of April 30, 1999 
(64 FR 24021, May 5, 1999), and Executive Order 13192 of January 17, 
2001 (66 FR 7379, January 23, 2001).
    In Executive Order 12808 of May 30, 1992, the President, invoking 
the authority of, inter alia, IEEPA and the NEA, had declared a 
national emergency with respect to actions and policies of the 
Governments of Serbia and Montenegro, acting under the name of the 
Socialist Federal Republic of Yugoslavia or the Federal Republic of 
Yugoslavia, in their involvement in and support for groups attempting 
to seize territory in Croatia and Bosnia-Herzegovina by force and 
violence. In Executive Order 12934 of October 25, 1994, the President 
expanded the scope of this national emergency to address the policies 
and actions of the Bosnian Serb forces and the authorities in the 
territory they controlled. To implement Executive Order 12808, OFAC 
issued the Federal Republic of Yugoslavia (Serbia and Montenegro) 
Sanctions Regulations, 31 CFR part 585 (58 FR 13201, March 10, 1993). 
These regulations were later renamed the Federal Republic of Yugoslavia 
(Serbia and Montenegro) and Bosnian Serb-Controlled areas of the 
Republic of Bosnia and Herzegovina Sanctions Regulations, 31 CFR part 
585 (60 FR 34114, June 30, 1995) (the ``Part 585 Regulations''), when 
they were amended to implement Executive Order 12934. The Part 585 
Regulations required the blocking of all property and interests in 
property that were in the United States or within the possession or 
control of United States persons, including overseas branches, of the 
Governments of Serbia and Montenegro, in the name of the Governments of 
the Socialist Federal Republic of Yugoslavia or the Federal Republic of 
Yugoslavia, or of Bosnian Serb military and paramilitary forces, 
authorities, and entities.
    In Executive Order 13088 of June 9, 1998, the President, invoking 
the authority of, inter alia, IEEPA and the NEA, had declared a 
national emergency with respect to the actions and policies of the 
Governments of the FRY(S&M) and the Republic of Serbia with respect to 
Kosovo, which, by promoting ethnic conflict and human suffering, 
threatened to destabilize the countries of the region and to disrupt 
progress in Bosnia and Herzegovina in implementing the Dayton peace 
agreement. To implement Executive Order 13088, OFAC issued the Federal 
Republic of Yugoslavia (Serbia and Montenegro) Kosovo Sanctions 
Regulations, 31 CFR part 586, (63 FR 54576, October 13, 1998) (the 
``Part 586 Regulations''). The Part 586 Regulations required the 
blocking of all property and interests in property that were in the 
United States or within the possession or control of United States 
persons, including overseas branches, of the Governments of the 
FRY(S&M), the Republic of Serbia, and the Republic of Montenegro.
    On January 17, 2001, the President issued Executive Order 13192, 
invoking the authority of, inter alia, IEEPA, the NEA, and section 5 of 
the United Nations Participation Act, as amended (22 U.S.C. 287c) (the 
``UNPA''). In Executive Order 13192, the President amended Executive 
Order 13088 to lift the blocking of property of the Governments of the 
FRY(S&M), the Republic of Serbia, and the Republic of Montenegro, 
revoke the trade and investment sanctions against these governments and 
the FRY(S&M), and introduce new measures to support the work of the 
International Criminal Tribunal for the former Yugoslavia (``ICTY''), 
address the illegitimate control over FRY(S&M) political institutions 
and economic resources or enterprises exercised by former President 
Slobodan Milosevic and his associates, and counter continuing threats 
to regional stability and implementation of the Dayton peace agreement. 
The new measures targeted persons under open indictment by the ICTY and 
persons exercising illegitimate control over FRY(S&M) political 
processes or institutions or economic resources or enterprises. To 
implement the new measures imposed by Executive Order 13192, OFAC 
issued the Federal Republic of Yugoslavia (Serbia and Montenegro) 
Milosevic Sanctions Regulations, 31 CFR part 587 (66 FR 50511, October 
3, 2001) (the ``Part 587 Regulations''). The Part 587 Regulations 
required the blocking of all property and interests in property that 
were in the United States or within the possession or control of United 
States persons, including overseas branches, of (i) persons listed in 
the Annex to Executive Order 13192 and (ii) persons determined by the 
Secretary of the Treasury, in consultation with the Secretary of State, 
to be under open indictment by the ICTY, subject to applicable laws and 
procedures, or to have sought, or to be seeking, to maintain or 
reestablish illegitimate control over the political processes or 
institutions or the economic resources or enterprises of the FRY(S&M), 
the Republic of Serbia, the Republic of Montenegro, or the territory of 
Kosovo.
    In 2001-2002, before the date of Executive Order 13304, OFAC had 
issued a series of general licenses and regulatory amendments that had 
authorized, with certain exceptions, most transactions otherwise 
prohibited by the Part 585 Regulations and the Part 586 Regulations, 
and had unblocked most property previously blocked pursuant to those 
regulations, with the exception of property and interests in property 
of: (i) Diplomatic and/or consular missions of the former Socialist 
Federal Republic of Yugoslavia; (ii) persons subject to sanctions under 
the Western Balkans Stabilization Regulations, 31 CFR part 588, or 
otherwise subject to sanctions under other parts of 31 CFR chapter V; 
and (iii) the central bank of the former Socialist Federal Republic of 
Yugoslavia, i.e., the National Bank of Yugoslavia, blocked pursuant to 
the Part 585 Regulations.
    Section 1 of Executive Order 13304 provides that, pursuant to 
section 202 of the NEA (50 U.S.C. 1622), termination of the national 
emergencies declared in Executive Orders 12808 and 13088 shall not 
affect any action taken or proceeding pending not finally concluded or 
determined as of the effective date of Executive Order 13304 (May 29, 
2003), or any action or proceeding based on any act committed prior to 
such date or any rights or duties that matured or penalties that were 
incurred prior to such date.
    In addition, section 1 of Executive Order 13304 invokes the 
authority of section 207 of IEEPA (50 U.S.C. 1706). Section 207(a) of 
IEEPA allows the President to continue to prohibit transactions 
involving property in which a foreign country or national thereof has 
an interest after a national emergency has been terminated if the 
President determines that the continuation of such a prohibition with 
respect to that property is necessary on account of claims involving 
such country or its nationals. Pursuant to section 207(a) of IEEPA, the 
President determined in section 1 of Executive

[[Page 38002]]

Order 13304 that continuation of prohibitions with regard to 
transactions involving property blocked pursuant to Executive Orders 
12808 or 13088 that continued to be blocked as of May 29, 2003 (the 
effective date of Executive Order 13304), was necessary on account of 
claims involving successor states to the former Socialist Federal 
Republic of Yugoslavia or other potential claimants.
    Since the effective date of Executive Order 13304, the successor 
states to the former Socialist Federal Republic of Yugoslavia have 
reached an agreement concerning the division of assets of the former 
Socialist Federal Republic of Yugoslavia.
    Accordingly, OFAC is removing the Federal Republic of Yugoslavia 
(Serbia & Montenegro) and Bosnian Serb-controlled Areas of the Republic 
of Bosnia and Herzegovina Sanctions Regulations, 31 CFR part 585, the 
Federal Republic of Yugoslavia (Serbia & Montenegro) Kosovo Sanctions 
Regulations, 31 CFR part 586, and the Federal Republic of Yugoslavia 
(Serbia & Montenegro) Milosevic Sanctions Regulations, 31 CFR part 587, 
from 31 CFR chapter V. The removal of these three parts from 31 CFR 
chapter V does not affect ongoing enforcement proceedings or prevent 
the initiation of enforcement proceedings where the relevant statute of 
limitations has not run.
    Please note that certain transactions relating to the Western 
Balkans region remain subject to Executive Order 13219 of June 26, 
2001, Executive Order 13304 of May 28, 2003, and the Western Balkans 
Stabilization Regulations, 31 CFR part 588 (the ``WBSR''), and property 
and interests in property blocked pursuant to those Executive Orders 
and regulations remain blocked. In a separate final rule also published 
today, OFAC is amending the WBSR to implement Executive Order 13304 and 
to make other changes.

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 of September 30, 1993, 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.

List of Subjects

31 CFR Part 585

    Administrative practice and procedure, Banking and finance, 
Blocking of assets, Exports, Federal Republic of Yugoslavia (Serbia and 
Montenegro), Foreign trade, Imports, Intellectual property, Loans, 
Penalties, Reporting and recordkeeping requirements, Securities, 
Services, Shipping, Telecommunications, Transfer of assets, Vessels.

31 CFR Part 586

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Federal Republic of Yugoslavia (Serbia & Montenegro), 
Investments, Kosovo, Montenegro, New investment, Penalties, Reporting 
and recordkeeping requirements, Serbia.

31 CFR Part 587

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Credit, Federal Republic of Yugoslavia (Serbia & Montenegro), 
Investments, Milosevic, Penalties, Reporting and recordkeeping 
requirements, Securities, Services.

PARTS 585, 586, AND 587--[REMOVED]

    For the reasons set forth in the preamble, under the authority of 
Executive Order 13304 (68 FR 32315, May 29, 2003) and 50 U.S.C. 1701 et 
seq., the Department of the Treasury's Office of Foreign Assets Control 
amends 31 CFR chapter V by removing parts 585, 586, and 587.

    Dated: June 16, 2011.
Adam J. Szubin,
Director, Office of Foreign Assets Control, Department of the Treasury.
[FR Doc. 2011-15638 Filed 6-28-11; 8:45 am]
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